Reference no: EM132983261
Starbucks, with more than 3,300 locations worldwide serves millions of coffee lovers each week. Having a history of excellent growth and profitability. Starbucks continues to expand. It opens "virtually a store a day".
In addition to sales of whole bean coffees, fresh brewed espresso beverages, pastries and confections, and coffee-related accessories and equipment in company-operated retail stores, Starbucks sells whole coffee beans through other outlets including supermarkets and online. It also manufactures and sells a line of premium ice creams and the bottled Frappuccino coffee drink.
Famed for its coffee products, the company also enjoys a glowing reputation as a progressive employer. Known for its employee policies and motivational programmes , Starbucks has been included in Fortune magazine's list of "The 100 Best Companies to Work For" in 1998, 1999 and 2000. The basis of Starbucks' reputation as a great place to work is contained in the six guiding principles that form the foundation of the company's mission statement.
One of these guiding principles is to provide a great work environment and treat each other with respect and dignity". Starbucks tries to create a work environment that is lively, exciting, and full of enthusiasm. One overt symbol of the guiding principle is the name to all Starbuck's employees. Everyone is called a partner. More important than the name, however, is a company culture devoted to developing and motivating the partners.
Starbucks has created a culture dedicated to challenging employees to be their best. Starbucks is dedicated to investing in, supporting and engaging in partners in the continual reinvention of the company. The challenge to be their best begins with training.
All new coffee store employees (referred to as baristas) receive 25 hours of classroom training under the guidance of partners who have been specially trained. The training includes coffee knowledge and customer service skills. Management trainees participate in up to 12 weeks of classes. They also receive coaching on leadership skills, diversity awareness, advanced customer service, succession planning and career development. Starbucks' motivational programmes for its partners consist of "a special blend of employee benefits" and a work life/personal life programme that focuses on the physical, emotional, mental, and creative aspects of each individual.
The company offers a comprehensive benefits package to all partners, including part-time employees who wok a minimum of 20 hours per week. The benefits package includes full medical and dental insurance coverage, disability and life insurance, vacation days, a retirement savings plan with matching company contributions, discounted stock purchase plans, and stock options as part of Starbuck BEAN STOCK programme. Starbucks established the BEAN STOCK programme in 1991 as a way of investing in the employee partners and creating ownership throughout the company. The work life programme includes on site fitness services, flexible work schedules, referral and educational support for child care and elder care issues, and a programme that links employees who have shared interests and hobbies.
Starbucks continually seeks to develop programmes that address the life stages and personal need of its partners. In fact, the company conducts periodic surveys of its partners to assess their needs and it responds accordingly with appropriate work/life solutions. "We will ask our partners constantly what is important to them and consider these things as we plan into the year 2003 and beyond", says a Starbucks manager.
Open communication and innovative thinking, both of which positively influence the partners, motivation-are encouraged through various partner relations mechanisms. These mechanisms include Mission Review, Open Forums, and the Warm Regards recognition programme. Mission Review, encourages partners to tell the company how they are feeling and ask any questions. Open Forums are held on a regular basis to review performance, recognise achievements, and consider the future. The Warm Regards programme recognises outstanding achievement that embodies the guiding principles, mission, and goals of Starbucks. These programmes benefit both the partners and the company.
One of the benefits for Starbucks is a reduction in operating costs. The company has relatively low health care costs reduced absenteeism and one of the lowest turnover rates in the restaurant industry. The lower turnover rate also reduces training costs. Another benefit for Starbucks is the quality customer service that grows out of the partners commitment to the company. "Profitable because of the value system of our company", observes Howard Schulz, Starbucks, Chairman and Chief Global Strategist. American companies have failed to realise that there is tremendous value in inspiring people to share a common purpose or self-esteem, self-respect, and appreciation. Starbucks is about people humanistic approach to doing business that produces bottom-line results".
Questions:
a. Given Starbucks' benefits package and work life programme, what insights have you gained about its approach to employee motivation? Explain your answer.
b. What needs does Starbucks appeal to, through its benefits package and work life program?