Starbucks
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How has Starbucks loyalty to its employees contributed to the companys growth?
Starbucks always think of people, not only his customers but also his staffs. “Partners”, as the company refers to its employees, including part-time employees. As Schultz says， “The only way were going to be successful is if we have the people who are attracted to the company and who are willing to sustain the growth as owners.”
Starbucks has done a lot to their “partners”. For example, partners can enjoy a number of benefits that include Starbucks-wide stock option plans, health, medical, dental and optical benefits. In addition, every partner can also receives “Partner markout” coffee or store products on a weekly basis. Also, Starbucks introduced the Coffee Master program for the staff to learn more about the coffee and hence improve the employees commitment to the company. Likewise, Starbucks also holds an Open Forum monthly to partners to talk freely with their recent work, suggestions and ideas. Many creations came from there since Starbucks founded.
The loyalty of Starbucks towards its partners would result in higher levels of performance and then lead to the growth of the company. This can be showed in few ways. First, benefits (i.e. stock option plans) help “partners” think and act like an owner, build positive long-term relationships with customers, and do things efficiently. Second, with the high level of respect, morale is very high in Starbucks. High employee morale equates to high productivity and efficiency within the company. Third, lower turnover rates can also be achieved. When its competitors had turnover rates for store employees ranging from 150% – 400% a year, the turnover rates for Starbucks had only about 65 percent, so the cost of employment can be lower. Forth, more innovative and competitive