Starbucks Coffee Company is adding an extra shot of espresso to its employee benefit and compensations offerings this year, according to a Jan. 24, 2018 announcement. Starbucks employees (also known as “partners”) can now eagerly expect another round of wage increases, stock grants, and sick time and parental leave program improvements in the coming months.
Overall, the newly-announced offerings total more than $250 million and will impact more than 150,000 employees. And, according to the company’s announcement, the introduction of these perks was accelerated by the recent U.S. tax law changes.
“While Starbucks already pays above the minimum wage in all states across the country, we have always felt strongly that a valuable benefits package must complement and contribute toward an industry-leading total compensation package,” Starbucks CEO Kevin Johnson said in a statement. “The value of Starbucks benefit package (fully accessed) is unmatched by other retailers and provides thousands of dollars of additional compensation value.”
Here’s what their employees will gain this year:
Additional wage increase
In April, U.S. hourly and salaried Starbucks employees will receive an additional wage increase which will be on top of the annual increases already doled out this year. Overall, this upcoming wage increase will cost the company $120 million. Wage increases will be allocated across the country based on cost of living and entry wage laws which vary state-to-state.
Stock grants
On April 16, Starbucks will offer an additional 2018 stock grant all full-time, part-time, hourly and salaried employees nationwide, so long as they have been active employees as of Jan. 1, 2018. Retail partners will receive at least a $500 grant each and store managers will each receive a $2,000 grant. Non-retail plant and support center partner grants will be awarded based on annualized salary or level. These stock awards, which will be 100 percent restricted units and will vest in one year, are valued at more than $100 million altogether.
Partner and family sick time
There’s going to be a new sick time benefit plan, too, which will allow Starbucks employees (Full-time, part-time, hourly and salaried) to accrue paid sick time based on how many hours are worked. This time off can then be used toward time off to care for themselves or a family member during illness. Starting July 1, employees will earn 1 hour sick time for every 30 hours worked. So, someone who works 23 hours a week will accrue about five sick days over the course of a year.
Parental leave
New moms aren’t the only ones covered by Starbucks parental leave policy anymore, either. All parents and non-birth parents can access up to six weeks paid parental leave when their family grows.
These changes aren’t the first of their kind for Starbucks, either. Since 2015, they have invested nearly $800 million in wage increases and benefits across its U.S. stores and expanded its Starbucks College Achievement Plan in early 2017. Starbucks is also set to invest nearly $7 billion of capital to build and renovate U.S. stores, manufacturing plants and technology platforms over the next five years.
To see how Starbucks employee compensation and benefits stack up against what other retailers offer, see their full release.
Sienna is a Staff Writer at The American Genius and has a bachelor's degree in journalism with an emphasis in writing and editing from the University of Wisconsin Oshkosh. She is currently a freelance writer with an affinity for topics that help others better themselves. Sienna loves French-pressed coffee and long walks at the dog park.
