International coffee chain Starbucks is increasing pay and enhancing its benefits package for US-based employees, including changes to its healthcare programme and share scheme.
Starbucks US is developing a personalised healthcare benefits package with the aim of giving employees greater flexibility and choice to suit their needs and budget.
From 18 July 2016, Starbucks US employees will be able to use interactive tools on the organisation’s benefits platform to personalise their health cover packages. This will enable staff to choose their own insurance provider, coverage level and price.
The organisation is also introducing an annual enhancement to its share scheme programme, Bean Stock, which will include a doubling of the annual bean stock award for employees with two years of continuous service with the organisation.
Employees and store managers in Starbucks-operated stores will also receive a 5% or more increase in base pay, according to geographical location and market.
The changes to pay and the Bean Stock scheme will come into effect from October 2016. Together, Starbucks expects the changes to result in compensation increases of between 5% and 15%.
To encourage diversity and allow staff greater freedom of self expression, the coffee chain is also set to provide enhanced flexibility and personalisation of its workplace dress code.
Howard Schultz, chairman and chief executive officer at Starbucks, said: “From being among the first to offer comprehensive health benefits and equality for [employees] who work 20 hours or more a week, to the Starbucks College Achievement Plan that more than 6,000 [employees] are enrolled in, we have always tried to innovate around the [employee] experience while being sensitive to [their] diverse needs, as well as the needs of our customers, marketplace realities and the complexity of the world beyond our own.
“Over the years, we have viewed our total compensation approach as the best way to create long-term opportunity for [employees]. We believe strongly in this philosophy but also recognise we must do more to help [employees] take advantage of all the [organisation] has to offer.
“I truly hope the coming changes – significant pay and Bean Stock enhancements; the added choice and potential savings in our healthcare plans; our ongoing commitment to scheduling that works for [employees]; and our evolving dress code – will deepen the reservoir of trust between [the organisation and employees].”