A Special Blend Benefits Compensation at Starbucks Corporation

A Special Blend: Benefits & Compensation at Starbucks Corporation Kayla Conklin

Mission & Vision “ To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. ” Six Guiding Principles 1. Treating Employees with Respect 2. Commitment to Diversity 3. Excellence in Purchasing, Roasting, & Delivering Coffee 4. Keeping Customers Satisfied 5. Contributing to Communities & the Environment 6. Achieving Profitability

Then & Now 1971 • 1 Store in Seattle, Washington Today • 17, 651 stores in 61 countries

Benefits & Compensation • • • Full Health, Dental, & Vision for part-time & full-time. Reimbursement Accounts Life Insurance Short-term & Long-term Disability Accidental Death & Dismemberment Employee Assistance Program (available to all regardless of benefit eligibility) • Adoption Assistance ($4, 000; 2 weeks off with pay) • Education Assistance • • Tuition Reimbursement Discounts on textbooks, technology, and more Free career services Scholarships & tuition discounts at Strayer Univ. and City Univ. of Seattle

Benefits & Compensation Cont… • • • CUP (“Caring Unites Parnters”) Fund Vacation accrual (part-time & full-time) Time + ½ for Holidays 2 paid personal days per year Up to 40 hours of sick time per year (full-time) 401 (k) 100% match for first 6% Bean Stock Weekly coffee/tea markout 30% partner discount (beverages, merchandise, & food) Partner Perks Card

Total Rewards Model

Total Rewards at Starbucks - Hire above minimum wage - Short-term incentive pay (production goals) - All previously described (health ins. , 401(k), disability, etc. ) - Pay for time not worked - Flexible scheduling - CUP fund - 2 paid days off for volunteer work - $10 per hour served - Coffee Master Program - Mission Review queries - Customer feedback survey rewards - Extensive training - Promotion from within - Education benefits

The Success of Starbucks q q 82% employee satisfaction rate 82% turnover (120% below the industry average) $1. 7 billion increase in net revenue in 2012 Many recent awards & recognition q q q q No. 1 Best Coffee – 2009 -2011 The 100 Best Companies to Work For (Fortune) – 1998 -2000, 2002 -2012 World’s 50 Most Innovative Companies (Fast Company) – 2012 World’s Most Ethical Companies (Ethisphere) – 2007 -2012 100 Best Corporate Citizens (Business Ethics) – 2000 -2012 Sustainable Design Award (Global Green USA) – 2011 Business Person of the Year- Howard Schultz (Fortune) – 2011

“In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic. ”