Starbucks, the nation’s largest chain of coffee shops, is planning to raise salaries for its workers this fall.
According to a letter to employees from CEO Howard Schultz, effective October 3, all partners and store managers in Starbucks’ 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.
Schultz also said Starbucks will be doubling the annual bean stock award for partners that reach two years of continuous service with the company. The bean stock program gives stock options in the company to employees.
The combination of these changes will result in compensation increases for employees between 5% and 15%.
Starbucks will also enhance its benefits program and online benefits platform so partners may shop, compare and choose health coverage with the similar convenience and personalization people experience when they shop, compare and choose airlines and airfare. Starting July 18, interactive tools on the site (mysbuxben.com) will allow partners to personalize their health coverage, select an insurance carrier and choose a coverage level that fits their needs, as well as a competitive price that fits their budget. In simple terms, the new health care options allow partners to only pay for the coverage they want and will actually use. The company estimates that eligible employees could save as much as $800 annually by moving to a plan that better meets their needs. For employees selecting family coverage, savings are potentially more, perhaps as much as $2,600 annually.
Schultz also promised to improve employee scheduling following complaints around the country of reduced hours.