In the Industry - how Starbucks implements the Human Resources Model.

1. Starbucks
From Employees to Partners
By: Samantha Adams

2. Background
★ Founded in 1971
★ Seattle’s one and only Pike Place Market

3. Background
★ Howard Schultz (CEO)
○ Schultz romanticized both the experience
and Italian coffee bars
○ Brought the Italian tradition back to the
United States
★ Schultz owned and operated his own
Starbucks in 1987
★ Other brands/subsidiaries include:
Starbucks Coffee, Seattle’s Best Coffee,
Teavana, Tazo, Evolution Fresh, La
Boulange, Ethos Water and
Torrefazione Italia Coffee.

4. Article Overview
★ Since the new tax reform, Starbucks is making it a priority to
give their employees, which they call “partners” new benefits.
★ The benefits were pushed by the Human Resources
department after it asked the partners what they wanted to
see in the future.
★ The benefits include paid sick leave, parental leave for dads,
access to wage increases, student loan repayment, unlimited
vacation, and one-time bonuses in the form of stock grants.
★ Starbucks plans on standing out amongst its competitors by
offering benefits that may pique the interest of potential and
current employees.

5. Article Overview
★ Starbucks aims to build its brand recognition of offering these
benefits that other retail employers do not.
★ Online petitions regarding paid sick leave as well as other
benefits had circulated before the tax reform. The reform
“accelerated the ability to do it.”
★ Starbucks is looking to spend $120 million on giving workers
a wage increase in April and $100 million on making a stock
grant to workers.

6. The Human Resources
Approach
Emphasis on the cognitive contributions employees make with
their thoughts and ideas

7. The Human Resources
Approach & Starbucks
★ The human resources model does not deny a relationship
between participation and morale. It suggests that
subordinates’ satisfaction may well increase as they play more
and more meaningful roles in decision making and control
(Miles, R.E.).
★ The model recognizes that improvements in morale may not
only set the stage for expanded participation, but create an
atmosphere which supports creative problem solving (Miles,
R.E.).

8. The Human Resource
Approach is Distinct
★ It aspires to increase organizational productivity to its full
potential, as well as increase the satisfaction individually.
★ Organizations cannot run successfully without internal input,
as ideas can contribute heavily to the everyday functions of an
organization.

9. Starbucks’ Reach
★ Areas highlighted in green are Starbucks locations

10. Starbucks’ Reach
75 countries
27,000 stores
300,000 employees
★ Starbucks has utilized the human resources approach through
constant communication with their partners about working
environments, benefits, and productivity.
★ They’ve provided their partners with constant access to
information regarding their benefits, as well as given them
that information in over 15 different languages.

11. Starbucks Partners
★ Being a Starbucks partner
means having the
opportunity to be
something more than an
employee.
★ Starbucks sees
possibilities ahead - to
grow as a person, in your
career and in the
community. Achieve your
personal best, be
connected to something
bigger.

12. Your Special Blend
★ Starbucks’ total pay package is called Your Special Blend. It’s a
package tailored to the needs of their partners.
★ Benefits-eligible partners (those working 20 or more hours a week)
can get a wide range of perks, benefits and assistance. Your Special
Blend might include bonuses, 401(k) matching and discounted
stock purchase options.
★ Partners also appreciate our recognition programs, career
sabbaticals and other time-off programs. Plus, you can take
advantage of partner perks such as 30% in-store and online
discounts, one free pound of coffee, box of K-Cup® Packs or tea a
week.
★ Starbucks recognized their partners with not only a reward system,
but by allowing constant suggestions and advancements in their
methods.

13. Ethical Sourcing
★ We take a holistic approach to ethically sourcing high
quality coffee. This includes responsible purchasing
practices, supporting farmer loans and forest
conservation programs. When we buy coffee this way,
it helps foster a better future for farmers and a more
stable climate for the planet. It also helps create a
long-term supply of the high-quality beans we’ve been
carefully blending, roasting and packing fresh for more
than 40 years (Starbucks).

14. Cultural Diversity
★ Aside from exceptional coffee, Starbucks has built
their business out of pure human connections,
community involvement, and celebration of cultures.
★ Diversity = Inclusion + Equity + Accessibility

15. Starbucks’ Version
★ The human resources model applies to the constant
heightened productivity and happiness of the Starbucks
partners.
★ Holistic approaches, benefits, raises, community and country
outreach, cultural diversity as well as complimentary
language accessibility all provide the basis of the human
resources approach.

16. Why Human Resources?
★ Human resources is the model that structurally fits Starbucks
the best due to its content, direction, style, and channel.
★ Content
○ Task, social, innovation
★ Direction
○ All directions, team-based
★ Style
○ Both, but especially informal
★ Channel
○ All channels

17. Questions
★ Does Starbucks use its benefits to more so help themselves, or
to actually help their partners/employees?
★ Why does Starbucks portray more of the human resources
model rather than the human relations model? If anywhere,
where do we see them overlap?
★ How does ethical sourcing, cultural diversity, Your Special
Blend, outreach, and partnering with employees help
Starbucks’ brand image?

18. Questions (cont.)
★ Starbucks is using this public relations opportunity to their
advantage, what guarantees do they give to actually carrying
out this rumored action?
★ If you were an employee of Starbucks, would these changes
help you stay longer? If you were not an employee, would
these benefits want to make you join the partnership?
★ Starbucks claims that historically, they’ve constantly been
thinking about how to partners to share in their success. Out
of some of the ways mentioned, do you think they are
capable of this?

19. Future Studies
★ Fringe benefits, as monitored by the Society for Human
Resource Management, are up 350 (70%) from 20 years
prior. Present information to see if this is key in the
workplace, since one study is done every 20 years.
★ Starbucks puts “an extremely welcome sign” up after
implementing these changes, as well as partners of the
company call the new policy “very welcome corporate
leadership.” It is necessary to see how well these changes
create either a different or better atmosphere in the work
place..

20. References
McGregor, J. (2018, January 24). Starbucks expands its paid sick leave and parental leave after tax
……..cuts - and employee requests. Retrieved January 30, 2018, from
……..https://www.washingtonpost.com/news/on-leadership/wp/2018/01/24/what-starbucks-is-
gi……..ving-workers-after-the-tax-cuts-raises-stock-grants-expanded-sick-and-parental-
leave/?utm_……..term=.b5cf5ba17897
Miles, R. E. (2014, August 01). Human Relations or Human Resources? Retrieved January 30,
……..2018, from https://hbr.org/1965/07/human-relations-or-human-resources
Starbucks – The Best Coffee and Espresso Drinks. (n.d.). Retrieved January 30, 2018, from
…….https://www.starbucks.com/