Starbucks Employee Relations Plan: Benefits & HR Strategy

Introduction: Starbucks' Corporate Philosophy and Employment

Most companies assert to prospective employees that the corporation offers excellent benefits and a good salary. Few corporations, however, make such assertions part of their core mission statement. According to Starbucks, the motto of the international, Seattle-based coffee company is "Our success depends on your success." This statement is not simply directed at Starbucks' customers, but to its employees as well (Starbucks, "Job Center," Official Website, 2004).

What does this effusive corporate motto and mission statement really mean? Starbucks is unique as a franchise restaurant in that it offers a wide variety of employment opportunities — such as retail store manager — as advertised on its website. Despite common jokes about the embarrassment of working as a barista after graduating from a prestigious university, the Starbucks Support Center in Seattle credibly offers "career opportunities [that] span a wide range of functions and departments, including not only openings behind the coffee bar and register, but also in Starbucks' accounting, finance, information technology, sales and supply chain management departments" (Starbucks, "Job Center," Official Website, 2004).

Employee Rights and Employee Relations

When designing elements of its employee relations program from the organization's point of view, Starbucks' policy implications were clear. The goals of the program were, according to the company's first mission statement, to "provide a great work environment and treat each other with respect and dignity" (Starbucks, "Mission Statement," Official Website, 2004).

Thus, even before discussing its customer relationships, Starbucks is concerned with how its treatment of employees supports its corporate goals. This stems not only from altruism, but from a belief that a loyal employee is a good employee and that the considerable cost of training an employee will pay off if that employee stays. Unlike McDonald's, Starbucks requires a better-trained employee and has an extensive orientation and training process. For accomplished baristas, there is also a management component to the training program, reflecting the Starbucks corporate belief that individuals who know the company well make better managers than those imported from other organizations. This may result in higher short-term costs, but the overall costs and benefits of implementing and maintaining the plan are justified, given the higher standard of quality and service expected by customers at the franchise.

Federal, State, and Foreign Regulatory Compliance

Starbucks Coffee Company is an Equal Employment Opportunity employer, in compliance with United States federal regulations. This means that all qualified applicants will receive consideration for employment without regard to race, national origin, gender, age, religion, disability, sexual orientation, veteran status, or marital status. Beyond mere legal compliance, however, Starbucks has a strong commitment to diversity. "At Starbucks we believe that teams that are more diverse are more effective," said Dija, a district manager quoted on the portion of the website entitled "The Starbucks Experience" (2004).

The notable presence of employee quotations throughout the Starbucks website further reinforces the company's image as an employee-friendly organization that cares what its employees think and who it employs. The company's second mission statement holds that diversity is critical and key to building a great company. "We strive to create a workplace in which every partner's voice is heard and in which all our partners will succeed while learning from one another. We believe that building understanding, respect, and appreciation for different people contributes to our growth and to the growth of our partners" (Starbucks, "The Starbucks Experience," Official Website, 2004).

This commitment is also evident in its community relations. "By working with qualified diverse suppliers, Starbucks has regularly met and exceeded its goals for purchases with women- and minority-owned suppliers" (Starbucks, "Community Relations," Official Website, 2004). As an international company, Starbucks states that it remains "highly respectful of the culture and traditions of the countries in which we do business," according to company founder Howard Schultz. "We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day" (Starbucks, "Coffee International," Official Website, 2004). The fact that Starbucks has been so successful in culturally distinct environments such as Japan — which possesses highly unique cultural elements not found in the United States — is testimony to the strength of this philosophy.

Conclusion: Employee Investment and Corporate Performance

A hard-nosed businessperson might ask: what about corporate profits in the face of such generous employee benefits? On July 21, 2004, Starbucks announced record third-quarter results in terms of its corporate earnings. Its revenues were up 27 percent, and its net earnings had increased by 44 percent. According to both corporate insiders and industry analysts, one of the main reasons for this performance was the company's international expansion, facilitated by its commitment to diversity, community development, and local suppliers. These results suggest that treating employees well is not merely an ethical choice, but a sound business strategy.