Starbucks is Pleasing Employees and Pouring Profits |

There ’ south something comfort and classy about Starbucks. It ’ s not just the enticing olfactory property and blues tunes wafting through the air, the big surroundings or the likelihood of running into a acquaintance or neighbor. It ’ randomness more the way the baristas ( never called “ counterpunch avail ” ) greet people, possibly offering a blueberry scone sample, or remembering a customer ’ sulfur predilection for nonfat soy caffe latte with supernumerary foam .
Starbucks attracts a near-cult surveil, serving 25 million drinks a week at closely 7,000 locations worldwide. In a four-week period ending in August, the company–which is growing by three to four stores a day–reported final revenues of $ 335 million, an increase of 26 percentage over the same menstruation last class. The Seattle-based coffee conglomerate was among the acme 10 on Fortune ’ s most late “ America ’ s Most admire Companies ” list. The magazine besides rated it the most admire food-services party in 2001 and 2002. Business Week named fall through Howard Schultz one of the country ’ s exceed 25 managers in 2001 .
Since Starbucks began with a one shop in 1971, its overriding doctrine has been this : “ Leave no one behind. ” With that in thinker, modern employees get 24 hours of in-store train, steeping themselves in information about chocolate and how to meet, greet and serve customers. Full health-care benefits ( aesculapian, dental, sight and alternative services ) are offered to all employees, including part-timers who work at least 240 hours per calendar quarter. The EAP is available to all employees. Employees parcel in the company ’ randomness growth via “ Bean Stock ” ( stock options ) of up to 14 percentage of their gross pay, and a stock-investment plan allows them to buy shares of Starbucks coarse livestock at a discount ( 85 percentage of clean market value ) through payroll deductions. The party besides matches employees ’ contributions to their “ Future Roast ” 401 ( kilobyte ) plans, adding from 25 to 150 percentage of the first base 4 percentage of pay, depending on length of service .
As a result of such measures, Starbucks employees have an 82 percentage job-satisfaction rate, according to a Hewitt Associates Starbucks Partner View Survey. This compares to a 50 percentage atonement rate for all employers and 74 percentage for Hewitt ’ s “ Best space to Work ” employers. Though the caller won ’ metric ton free specific numbers, it besides claims that its dollar volume is lower than that of most fast-food establishments. But it ’ s not just the benefits that attract employees. Another company survey found that the top two reasons why people work for Starbucks are “ the opportunity to work with an enthusiastic team ” and “ to work in a set where I feel I have measure. ”

Omollo Gaya, who grew up on a coffee bean farm in Kenya and immigrated to San Diego to attend college, was drawn inside a Starbucks store seven years ago by the judicious aroma. He bought a sudanese pound of coffee, struck up a conversation with the employee behind the counter, and was impressed by the barista ’ second cognition. As he sipped his brew, “ something clicked, ” Gaya says. After researching Starbucks, he applied for a job and spent the future four years in a San Diego store before being promoted to his current side as one of eight coffee tasters at company headquarter. After six years, Gaya exercised his bean Stock options, which netted about $ 25,000 after requital of the exercise price, to build a new four-bedroom house for his widow mother on 15 acres in her home village .
“ The health benefits, the 401 ( potassium ) and the stock options very surprised me, and confirmed what this company is all about, ” Gaya says. “ From my first gear day on the job, I got a lot of gratification when I offered a cup of coffee bean to customers and saw the smile on their faces, when I answered their questions about chocolate, and when I saw their exuberance when they returned with a supporter or colleague. My love for coffee started when I was 5 years old, but I never thought it would come to mean so much to me. Buying a home for my mother is the foreground of my being with Starbucks. ”
Maintaining that kind of feel-good air in a small mom-and-pop company is one thing. The question is how Starbucks manages to keep the spirit flowing with 11,000 full-time and 60,000 half-time employees in North America, and an extra 7,400 workers globally. “ Staying ‘ small ’ while we grow is one of our biggest challenges, ” says Dave Pace, executive frailty president of the united states of partner resources ( the company ’ randomness terminus for human resources ). “ It sounds clichéd, but we do it by taking our mission statement badly. Almost all companies have a deputation, but at Starbucks, we use it as our guiding principle and hold it up as a filter for decision-making. ”

Providing a great work environment and treating employees with respect is number one on Starbucks ’ six-point mission affirmation. The list besides includes a committedness to diversity ; excellence in buy, roasting and delivering coffee ; keeping customers satisfied ; contributing to communities and the environment ; and, of course, achieving profitableness .
Starbucks encourages its employees, who are called partners, to keep in beware its mission statement, monitor management decisions, and submit comments and questions if they encounter anything that runs anticipate to any of the six points. Employees submit about 200 such Mission Review queries a calendar month, and a two-person team considers and responds to each one. As a result of one such revue request, Starbucks extended its military-reserve policy to protect the jobs, salaries and health-care benefits of employees who were called into carry through after September 11 and again during the Iraq war.

The company besides encourages community interest by donating $ 10 for each hour that an employee volunteers to a nonprofit or charitable organization. Profits from sales of the company ’ s logo-emblazoned “ coffee gearing ” are channeled into clubs and services for employees, which include everything from running groups and bowling leagues to quilting and script clubs. Employees can donate an amount of their choice to a voluntary “ CUP ( Caring Unites Partners ) fund, ” which is used to provide grants to fellow employees who fall on difficult times. And every class, as contribution of its Earthwatch program, the company selects a few employees to travel to coffee-producing parts of the populace, where they learn firsthand about environmental and conservation issues from the growers. death year two were selected ; this class five are going .
“ People come to Starbucks to socialize and interact, so our partners do much more than equitable make coffee, ” Pace says. “ They are the ones who create that environment in our stores and make this a place that people feel adept about. So they feel empowered and know they are making a contribution. This is a company where we look out for each early and look out for the residential district. And when people see us responding to them, they feel like this caller in truth ‘ gets it. ’ ”
Workforce Management, October 2003, pp. 58-59Subscribe Now!

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