CEO says: "We will reintroduce joy and connection back to the employee experience"
Starbuck’s employees will have their employee experience elevated after Starbucks CEO, Howard Schultz, announced a series of investments in the company totalling $1 billion. The initiatives include increased pay, benefits, and training. Shultz added: “We will reintroduce joy and connection back into the partner (employee) experience.”
Schultz returned to Starbucks as CEO at the beginning of April and since then has been visiting sites across the country and conducting immersive collaboration sessions that resulted in the new initiatives.
From June 21 and 30 respectively, new baristas and new shift supervisors will have their training time doubled and training programs will be enhanced. There will also be increased wages and further increases for ‘tenured’ or long-service employees, and they will double the planned investment in management roles. New benefits include opportunities to increase sick leave, a financial toolkit benefit and student loan advice.
Down the road, Starbucks will look at launching a modern career recognition program and expand their current portfolio of upskilling and career mobility programs.
Starbucks CFO, Rachel Ruggeri told investors: “We are confident the investments we are making in our employees, our stores, our brand, will deliver significant returns, in excess of historical levels, resulting in accelerated long-term growth.”
The new pay and benefits changes will only apply to stores where Starbucks has the right to unilaterally make these changes.