Starbucks unveils raises, additional employee benefits & a barista championship
Image credit: Starbucks
Starbucks Coffee Company announced multiple new ‘partner investments’ designed to elevate the partner (employee) experience and their livelihoods. These developments include accruing paid vacation time sooner, continued investments in partner pay, financial well-being and skills-building benefits, partner-centric scheduling, and the introduction of the first-ever North America Barista Championship.
“Investing in our partners is what drives our success,” said Sara Trilling, evp and president of Starbucks North America, Seattle, Washington. “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. 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.”
Highlights of Starbucks partner investments include:
• Vacation Accrual: Starting this February, hourly partners will accrue paid vacation time sooner, beginning just 90-days after hire.
• Competitive Pay: Sustained investment in retail partner pay remains a priority. Starbucks moved the wage floor for all U.S. retail hourly partners to USD $15 per hour in 2022 and has continued to add incremental increases, while recognising and rewarding tenure. Starting with competitive pay — Starbucks provides U.S. hourly retail partners an average wage of nearly $17.50 per hour, a barista wage range between $15 and $24 per hour and a total compensation, with benefits, of approximately $27 per hour.
Effective 1 January 2024, eligible U.S. retail hourly partners will see a 3% increase and differentiated pay for eligible tenured partners. Eligible partners with 2-5 years of service will get at least 4% and those with 5 or more years of service will get at least 5%.
• Introduction of First-Ever North America Barista Championship: With the first-ever North America Barista Championship kicking off this February, Starbucks partners will have the opportunity to showcase the unique role they play in bringing the Starbucks experience to life for customers each day, demonstrating their commitment to connection, craft, and community. This program will be open to eligible baristas and shift supervisors in participating U.S. and Canada stores as well as eligible Siren Retail roles.
• Career Mobility: Craft isn’t just about coffee – it shows up in how partners hone and master their craft in their day-to-day roles. To further support partner career growth and mobility, the company is exploring credential and certification programs to build on the Starbucks College Achievement Plan (SCAP). More than 23,000 partners are currently on their unique educational journey to earning their first-time bachelor’s degree through SCAP, a first of its kind partnership with Arizona State University’s (ASU) top-ranked online degree program. Tuition and fees are covered upfront for partners, helping to remove the hurdle of rising tuition costs that often block their pathway.
To date, more than 10,000 partners have graduated and 20% of partners enrolled in SCAP are first generation college students. Starbucks is committed to helping at least 25,000 partners graduate by 2025, with an expected investment of approximately $250 million or more by 2025.
• Financial Wellness: Financial wellness benefits at Starbucks are grounded with equity ownership in the company through annual Bean Stock grants, which have awarded more than $2 billion in additional earnings to partners, to-date.
Starting this January, partners will be able to sign up to receive the new Siren Card – a premium card offering a high-tech banking experience designed exclusively for Starbucks Partners. Built with cred.ai and Visa USA, the Siren Card comes packed with exclusive tech features, the world’s first “automatic credit score optimiser,” 24/7 support, and the guarantee to never pay account fees or interest, all supporting financial wellness with zero effort.
• Partner-Centric Scheduling: Starbucks aims to provide partners with hours that align with their individual needs and preferences. To achieve this, Starbucks collects a range of preferred, minimum, and maximum hours to build a complete picture of partner preferences and assist store managers in scheduling and managing their workforce. This improved scheduling protocol will enable partners to contribute to the personalisation of their ideal schedules. Together, these efforts will help Starbucks improve the stability, flexibility, and consistency of schedules.
