Starbucks has introduced new initiatives to redefine its employee benefits, including plans to increase the hourly pay of employees at US stores by at least 3%, effective from 1 January 2024.
An increase of at least 4% is being implemented for eligible workers with two to five years of service and the company said workers with five or more years could see an increase of 5%.
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The new initiatives also include faster accrual of paid vacation time, financial well-being programmes and the launch of the inaugural North America Barista Championship.
A recent Aon Benefit Index analysis confirmed Starbucks as a leader in delivering valuable benefits for retail hourly employees among more than 50 US companies.
Key highlights of employee investments
Competitive pay: Starbucks maintains a wage floor of $15 per hour and offers an average hourly wage of nearly $17.50, with incremental pay increases for tenure.
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Vacation accrual: Starting February 2024, hourly employees will accrue paid vacation time just 90 days after hire.
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By GlobalDataNorth America Barista Championship: The first-ever competition in February celebrates Starbucks employees’ commitment to connection, craft and community.
Financial wellness: Employees can now opt for the Siren Card, a banking experience designed for Starbucks workers, promoting financial well-being.
Partner-centric scheduling: Starbucks prioritises individual employee needs by creating work schedules that balance availability with store staffing requirements.
Investing in employee success
Starbucks North America executive vice-president and president Sara Trilling emphasised the importance of investing in employees for the company’s success, stating: “It’s what makes us all partners. And an important way we do this is by investing in our partners’ journey, to bridge to a better future at Starbucks and beyond.”
Trilling added: “This entails engaging with and listening to their ideas and feedback while continuing to raise the bar by offering competitive pay and the best benefits package in the industry.”
With more than $1bn invested since the previous year, Starbucks has witnessed a positive shift in hourly turnover rates, dropping below pre-pandemic levels.
More than 20% of Starbucks’ profits from 2023 were reinvested in wage increases, training and equipment, resulting in an increase in hourly total cash compensation since fiscal year 2020.
As Starbucks continues to evolve its offerings in response to employee feedback, these investments exemplify the company’s dedication to building a better future for all its workers.
