That headline, you’re thinking, lies… but it isn’t. This past Monday, Starbucks CEO Howard Schultz sent out a letter to employees which outlined several company wide initiatives to take place later this year.
Among the changes Schultz outlined in the letter, this one stood out the most:
“First, effective October 3, all partners and store managers in U.S. company-operated stores will receive an increase in base pay of 5% or greater. The range of increase will be determined by geographic and market factors and is intended to ensure Starbucks remains a retail employer of choice in all the markets where we operate.”
Although the range of increase will vary for each store the base increase is set at 5%. Furthermore, the second point highlighted the company’s new goal to improve their Bean Stock program annually. Changes to both wages and Bean Stock program will, as Schultz notes, “result in compensation increases between 5% and 15%”. More details will follow in the upcoming weeks as Starbucks plan to implement later this year.
1991: Starbuck’s Bean Stock program was initiated back in 1991 and aimed at providing all employees equal opportunity to share in the brand’s success by awarding equity in the form of stock options.
2010: Starbucks overhaul Bean Stock program to reward partners with restricted stock units so you will have the right to receive a certain number of shares but only after a specified period of time.
“When the RSU grant vests, partners receive actual shares of Starbucks stock. Starbucks partners in company-owned markets are eligible to receive Bean Stock if they are employed at Starbucks as of May 1 of the fiscal year preceding the grant date, have been paid at least 360 hours over the entire fiscal year, and are in a position up to but not including the director level.”
Health Care Benefits Program: Starbucks is planning to improve their health care program by offering team members personalized options. This measure will take effect starting July 18, 2016 with Starbuck’s interactive tools at mysbuxben.com. Heading into this portal, Starbucks members will be able to customize their health coverage by selecting their preferred insurance carrier, coverage level, and access competitive pricing.
Scheduling: Starbucks aims to improve flexible scheduling for team members and work with those who need specific scheduling to ensure their benefits eligibility.
Dress Code: Aside from the green apron which will still be a must in Starbucks work environment, they’re on board with letting go of the typical uniform members are required to wear underneath their apron. Soon, you’ll be able to dress as you please (to an extent) while working at Starbucks.
More details on these changes will be discussed in full at the Starbucks Partner Open Forum at the end of July.
Source: Palm Beach Post
Someone has to pay for the wage hike right? Starbucks has increased prices on select coffee, espresso, and tea lattes starting well... today, July 12. According to CNN Money, "the announcement came after some customers were charged a higher price by mistake" and Starbucks has yet to specify which drinks in particular are seeing a price hike.
"Depending on the market, customers will experience increases of 10 to 20 cents on select sizes of brewed coffee, and 10 to 30 cents on espresso beverages and tea lattes. We expect the average customer ticket to increase by about 1 percent as a result of these beverage adjustments, however, 65 percent of beverage prices have not changed." - Starbucks
Price increases varies by product and by market so try asking your local baristas to see what specific drinks saw a price hike.
Any DealsPlus members here work for Starbucks? How do you feel about these changes?