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Table of Contents

1

Introduction.........................................................................................................................2

2

Starbucks HR policies and practices...................................................................................2
2.1

Recruitment.................................................................................................................2

2.2

Employee Relations.....................................................................................................4

2.3

Compensation..............................................................................................................5

3

Recommendations...............................................................................................................7

4

References...........................................................................................................................8

pastries. including mini-stores located in hotels. Through the adequate implementation of human resources management. upscale grocery stores. 2 2. according the company's emphasis on Starbucks' in-store experience of customer service. Starbucks uses its Human Resources policies and practices as a strategy to gain competitive advantage within the international market and the retail industry. evaluating them on a regularly basis. 2011). soda. Due to the fact that the recruitment process represents a vital step for the organization it is of greater importance to hire the right candidates. The organization depends on a main competitive advantage. juices).1 Introduction Starbucks Corporation is the largest coffee house in the world and it is a very profitable organization. develop and retain committed employees. Some of Starbucks products are beverages (coffee. Retaining valuable employees implies encouraging them to succeed. Equally significant. providing them with benefits and being able to undertake the necessary actions to keep them within the organization.600 stores in around 50 countries. and other ventures which are not free-standing. that comprises all the activities that a company takes to attract. Starbucks remain one of the most awarded company for its Human Resources practices (web-books. tea. retail of coffee. The company has also adopted a highly aggressive globalization strategy to capitalize upon European tastes and interest in American coffee products. whole coffee beans and merchandise (mugs. Tazo. Starbucks emphasize positioning its stores in high traffic areas. It is a global coffee brand which provides different. CDs). It has around 16. provide them with training sessions and ensure them a fast development within the company.com. Company executives believe that this orientation has been the key to the firm's success in world wide. The company’s recruitment motto is “To have the right people hiring the right people” by focusing on people’s energy and believing that candidates with the appropriate skills might . shopping mall food courts. They use internet to provide customers with online opportunities to purchase coffee and other food products as well as a growing range of kitchen and beverage accessories.1 Starbucks HR policies and practices Recruitment Employees at Starbucks represent an important asset of the company and they are crucial for the company’s growth. creative products and fine services.

Starbucks offers different types of training program. Senior-level positions. even entry-level positions require an MBA. they were also taught the service principles. For Category Directors. they choose students who have done one to two prior internships. undergraduate degree holders with 2-3 years working experience through an employment agency. or related industry. and progressive experience managing product or program development from . Six years of experience is also required in product or brand management with profit and loss responsibility. and food microbiology. This program consists in providing the employees with the right knowledge concerning the company’s values and how to foster it amongst customers. on the other hand.5 GPA to do volunteer work. some seniors. Regardless. In terms of abilities. They should have knowledge of food ingredient functionality. Starbucks has very high standards for interns. go-getting personalities. applicants must have at least six years of business management experience. such as “First Impressions” for all the employees due to the fact that the organization relies a lot on the frontline staff by being the first ones to interact with potential loyal customers. In addition. Besides this. Starbucks looks for students who hold leadership positions in student clubs. For instance. the top managerial position in the U. All product development applicants should have experience in bench top to full-scale commercialization of products. product divisions before the executive-level. and are involved in the community. to know all the rules regarding the coffee preparation and how to use a cash register. and really well-rounded individuals: those who have a minimum 3. Desired personal qualifications are A-type.easily become an asset for the company. Qualifications for Product Developers vary depending on whether the position is entry level or a senior position. they should have the appropriate communication skills in interacting with customers in order to create the proper environment that Starbucks was trying to promote. and then an even smaller number of sophomores at the undergraduate level. They look mostly for college juniors. require at least 5 years of experience in product or menu development in the food and beverage. and specifications development. project management. They must have three years of experience in developing strategic plans. product developers must be able to work with crossfunctional teams. all the employees had to be aware of company’s history.S. In terms of experience. or exceptional undergraduates who previously held an internship at Starbucks and developed a great working relationship with their teams and Category Directors are acceptable applicants. and have basic Microsoft Office software skills. However. process development.

recognition and on the same time the company succeeded to have a low employee turnover. Moreover. This work-life balance concept was designed in order to help employees to cope with their daily life problems and on the same time to be able to maintain or improve their work performance. as well as the ability to lead and negotiate with others effectively. which was called “Adoption Assistance Program”. Employees that achieved a certain number of hours benefited of health insurance coverage. companies must provide to employees more than an adequate salary and a medical plan in order to gain a competitive . These applicants must be able to work across company divisions. which depended on the personal needs of each worker. Starbucks developed a new strategy by creating the “Bean Stock” Plan available for employees that worked more than six months within the company (Wilson.conception through implementation. such as hypnotherapy and naturotherapy. In addition. Furthermore. Starbucks began to call its employees ‘partners’. The company gained recognition amongst people by being one of the first organizations to offer same advantages and benefits to part-time workers as for the full-time employees (Wilson. The company succeeded to offer their employees a wide variety of benefits such as income protection. partner discounts or even free drinks on a regularly basis. saving plans. 2007). a new solution was found to maintain low employee turnover by developing the “Working Solutions” program to help the employees in their daily life . According to Thompson (2003). 1999). Starbucks was the only company in this industry that offered the highest wages by exceeding the minimum wage as specified by state laws by a reasonable margin. Starbucks decided to be more aware of their employee’s needs outside work in order to retain their valuable staff members. highlighting that each member of the organization is equal. In addition. due to the fact that this plan was offered to all employees. In 1991. these benefits led to employee motivation. Starbucks developed its human resources policies and strengthen them to the extent that employees felt connected with the managers and the organization itself. 2. Additionally. 1999).2 Employee Relations Furthermore. was designed to reimburse employees a certain amount of expenses that had occurred during the adoption process (Starbucks. Another unique benefit of Starbucks. This program consisted in offering the employees the opportunity to play an important role in the company’s performance. Starbucks was offering dental and vision insurance and as well it was covering different medical treatments.

Starbucks became recognized by its flexibility by offering to all employees an adaptable schedule in order to create a balance between work and life . Although many partners work part-time they are still eligible for fulltime benefits if they work 240 hours a quarter. Starbucks Total Pay package includes programs that embrace diversity as a way to conduct business. paid sick leave. Partners are also eligible for free coffee and tea products each week. including healthcare and dependent care.000. vacations. depending on marital . not only inside the company but also outside of it. Reimbursement accounts. Starbucks designed a new program called ‘Partner Connection’. Its aim was to bring together employees that shared the same interest. Starbucks program was focused in fulfilling employees’ needs by offering them childcare or even elder care assistance. Moreover. Howard Schultz. who was asked by an institutional investor during the worst time for the company during the recent recession to consider cutting its workers health care benefits to save cost. and a 401 (k) retirement plan. Starbucks provides all employees and their same-sex or opposite sex partners comprehensive health benefits that include medical.3 Compensation Starbucks offers its partners comprehensive health benefits that exceed those provided by many other retailers. One estimate is that less than 30 percent of part-time workers in the United States receive health care. as well as tuition reimbursement. In order to strengthen the relationships between employees. 2. Starbucks created a new program called “Partner Snapshot”. and vision care. or eligibility for bonuses or stock options. stock options and discounted stock purchase plan. The Dependent Care Reimbursement Account allows contributions of $2. in order to assure that their employees are satisfied and motivated at work. varying from parenting until social activities. 1999).000 each year to pay for out-of-pocket healthcare costs. Schultz advised him that he would not do so and that he should consider investing his money elsewhere. are eligible for salaried and non-retail hourly workers.advantage. The Health Care Reimbursement Account allows contributions of $100 to $5. dental. In addition. which was conducted on a regularly basis surveys to monitor whether their human resources policies are having the desired impact or whether they need to be changed (Wilson. in 2000. The high importance placed on partners in Starbucks success is shown by the decision made by Starbucks CEO.500 or $5. Starbucks believed that this will had a positive impact upon employees’ turnover and the overall business performance.

” which financially assists partners who fall upon difficult times such as illness. partners are eligible for disability coverage. Additionally. Additionally. financial assistance programs. After ninety days of employment.000. an entirely optional program. vacation days. it was noticed that the company succeeded in most of the times to align its company’s mission statement. personal days. Vacation time is based on the position and length of time with the company. and longterm disability. Tuition reimbursement is available to workers who have been with Starbucks for over a year. Starbucks had a fast growth in this industry and as well the company easily succeeded to differentiate itself from the competitors in the market. One issue identified is concerning one of the Starbucks principles.retail hourly partners Moreover. critical incidents in the workplace and other concerns. Starbucks’ provides basic life insurance and sick pay for salaried and non. 3 Recommendations Trough the analysis of Starbucks business strategies and Human Resources policies.” which covers “stress -related issues. Reimbursement amounts are higher when partners have been with the company longer. and adoption assistance. meaning twenty six weeks or less. and tuition reimbursement. Retail hourly workers are also eligible for holidays. accruing monthly. principles and values with its human resources practices. emotional difficulties. tuition reimbursement. vacation time and. counseling services. Starbucks time off varies for salaried workers and retail hourly workers. The Starbucks Stock Investment Plan gives partners the chance to purchase company stock at a discounted price through regular payroll deductions. accidental death and dismemberment insurance. Finally. Salaried workers are eligible for holidays. by achieving this alignment. Disability insurance encapsulates short term.” Starbucks offers the “Caring Unites Partners Fund. The counseling service Starbucks provides is called the “Employee Assistance Program. Starbucks subsidizes partners who have chosen to adopt children by up to $4.status to pay for dependent care expenses. partners are eligible for a 5% discount on Starbucks stock at the end of each calendar quarter. By analyzing the company’s Human Resources . Moreover. Starbucks offers “Bean Stock” of up to 14% of an employee’s gross pay to share in the company’s growth. Two personal days per year are available to partners. which is to “embrace diversity as an essential component in the daily business activities”. Benefits eligible partners are able to purchase accidental death and dismemberment insurance. natural disaster or death in the family.

Moreover.policies and practices it is noted a gap between the above principle and the fact that the organization doesn’t focus that much on the workforce diversity. . by taking into consideration the international expansion of Starbucks it is noted that staff members don’t benefit of a diversity-training program. However. improving employees’ communication skills and avoiding any intercultural conflicts to take place. Starbucks should consider the implementation of a diversity-training program in order to be able to cope with the new challenges that may arise in the near future. the positive impact of this program will be easily reflected upon the overall business performance of the organization. these training sessions may aid in creating a more friendly work environment. Furthermore. The purpose of implementing such a program should be to increase employees’ awareness towards the different ethnical backgrounds of their colleagues or even customers. Starbucks programs have proved to be successful in terms of creating employees retention and motivation.

T.(2011). D. pp.” Training. from http://lifeat. Building a Unique Total Rewards and HR System For A Unique Company At Starbucks. “U. Adoption Assistance Program. Available from http://www. 6.(2007).S. M.S.com/NR/rdonlyres/8E18A19E-ECB2-436C-916A443ADE37818A/0/AdoptionAssistance012607 2. Help employees achieve a work/life balance.html 10. 4.com . “Our Starbucks Mission Statement” from company information from www.4 References 1. 7. “Fresh Cup of Training. “Starbucks Says Demand Perking Up. U. 2009.web-books. p.microsoft.starbucks. Thompson.” Wall Street Journal. B1. 2011. 2011.(2003). May 2008. 3. D6. B5.wilsongroup.com.(1999). Retrieved March 2. K. Based on D. November.starbucks.pdf . 2011. Associated Press. Human Resources Management. Total Pay Your Special Blend” from “Working at Starbucks” at www.. Weinstein.” Wall Street Journal. Wilson. Retrieved February 28.” Columbus Dispatch. p. Web-books. March 25. Starbucks. from http://www. Helliker and P. “Starbucks Gives Logo New Look. Retrieved February 26. p. 5.aspx 9. Kesmodel. 2011. B4.com/en-us/word-help/help-employees-achieve-awork-life-balance-HA001171777.com .com/eLibrary/NC/B0/B66/055MB66. 8. “Starbucks Announces Its First Dividend. from http://office. 10. B. 2010.sbux. Ziobro. 6.com/ecr/case/Starbucks. January 9.