- Wednesday, October 16, 2024
Starbucks Coffee Co. announced on Monday that its U.S. retail hourly partners will receive an incremental pay increase of at least 3% starting January 1st. The company aims to support its employees by providing competitive wages and benefits.
Pay Increase Details
Eligible employees with two-to-five years of service will receive a pay increase of at least 4%, while those with five or more years of service will receive a pay increase of at least 5%. Starbucks values the dedication and loyalty of its long-term employees and rewards them accordingly.
Paid Vacation Time
In addition to the pay increase, starting in February, hourly workers will also begin accruing paid vacation time. This benefit will start 90 days after their hire date, providing employees with an opportunity to enjoy work-life balance.
Focus on Education
Starbucks is committed to the personal and professional growth of its partners. As part of this commitment, the company is studying credential and certification programs to enhance its Starbucks College Achievement Plan. Currently, over 23,000 employees are pursuing their first-time bachelor's degrees through the plan.
Competitive Compensation
Starbucks understands the importance of offering competitive compensation to attract and retain top talent. The company now pays an average wage of nearly $17.50 per hour, with a range between $15 and $24 per hour. For employees who qualify for benefits, the hourly wage can go up to approximately $27 per hour.
Equity Ownership Program
As part of its ongoing commitment to employee empowerment, Starbucks offers equity ownership in the company through annual Bean Stock grants. To date, the company has paid out over $2 billion in additional earnings through this program. This provides partners with an opportunity to share in the company's success.
Future Expansion
Starbucks is poised for growth with plans to open 55,000 new stores in the near future. As a part of this expansion, the company will provide additional details on employee benefits to support its growing workforce.
Starbucks stock was up 0.6% in premarket trading on Monday, reflecting the positive response to these employee-focused initiatives.
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