Overview
Starbucks is the world's largest coffeehouse chain, operating in over 80 countries. If you are a recent hire or considering applying to work at Starbucks, you must be aware of the company's employee benefits. Starbucks employee benefits include health insurance, retirement savings, tuition reimbursement and paid time off.
The Starbucks employee benefits scheme is one of the most recognized in its industry. It is arguably one of the reasons Starbucks retains top talent and is a dream employer for most job seekers. A survey of employees at Starbucks found that the majority are generally satisfied with Starbucks employee benefits.
The survey, conducted by Employee Benefit Research Institute (EBRI), found that 8 in 10 Starbucks employees said they were satisfied with their health insurance benefits. The survey also found that 78% of the employees were satisfied with their retirement savings benefits, and 76% were satisfied with their paid time off benefits.
Some Starbucks employee benefits are available to all workers, while others require employees to meet eligibility criteria. Most notably, eligibility for some Starbucks employee benefits is determined by how many hours you receive in a specific period or the length of service.
A video published by Starbucks stipulated eligibility determined by variable hour roles. A variable-hour role is a type of employment where the number of hours you work can differ from week to week or day to day. You will be eligible for Starbucks employee benefits after 90 days if you hold a variable-hour role. You must also log at least 20 weekly hours [Learn More].
Starbucks employee benefits are available to a full-time employee on the 1st day of the month after the 60th day of employment. Eligibility for Starbucks employee benefits is audited. I have learnt through their website that these audits happen twice a year (January 6 and July 6).
According to a University of California, Berkeley study, Starbucks employees eligible for the company's health insurance coverage were more likely to be content with their work and less likely to leave the organization. The study also discovered that the benefits program positively affected worker satisfaction and output.
Separate research by the Society for Human Resource Management found that Starbucks employees who qualified for the company's tuition reimbursement program were more likely to be committed to their jobs and had long-term plans to work there. The study also discovered that the Starbucks employee benefits program positively affected worker satisfaction and productivity.
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Outline of Starbucks Employee Benefits
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1. Health Coverage
Health Coverage is a major Starbucks employee benefit. This coverage is offered to eligible full-time and part-time workers. The benefit extends to the families. If you join Starbucks, it will share the costs of health bills if you opt into one of their health plans below:
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According to Starbucks, the Silver Plan will cost you $40 per paycheck, significantly less than other retailers.
The diagram above accounts for basic health coverage. In addition, Starbucks will cover 70% of your premium costs, which are taken directly out of your pay stub before taxing. The health benefits will extend to all dependents. This includes spouses, children and domestic partners.
Another interesting feature of the health coverage is that it will cover 100% of women's preventive health and preventive care services. Starbucks' employee benefits can provide affordable alternatives to expensive health insurance plans. This Starbucks employee benefit is also available to part-time workers.
All U.S. workers for Starbucks and qualified family members have free access to 20 sessions per year with a mental health therapist or coach through Lyra Health. This follows the company's mantra to support the mental health of employees. Additionally, upon employment, all employees are qualified for free access to Headspace.
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2. Stock, 401(k) & Financial Well-being
Starbucks employee benefits include the unbeatable 401(k) plan. This is internally called Starbucks Future Roast 401(k) Savings Plan. The plan includes a generous company match and offers you discounted company stock. There is also an opportunity for you to participate in the company's equity reward program, Bean Stock.
The Starbucks future roast 401(k) allows you to save for retirement. This is done by making contributions from your paychecks. Starbucks will match up to 5% of your eligible pay, a free way to grow your savings. You can choose investments that fit your risk tolerance and financial plan. Additionally, you have flexibility in how you save for retirement since you can adjust the amount of your contribution whenever you want.
As part of Starbucks employee benefits, the 401 (k) plan has generally been received positively by employees. Surveys carried out by Glassdoor found that 92% of Starbucks employees said they were satisfied with the 401(k) plan. 8 in 10 employees at Starbucks said they would recommend it to a friend. One employee, quoted verbatim, said, 'The company match is a great way to save for retirement. It's like getting a free raise.' Another, 'I appreciate the variety of investment options available in the plan. I can choose investments that match my risk tolerance and investment goals.'
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3. Paid Time Off (PTO)
Starbucks employee benefits offer both retail and non-retail employees paid vacation days. This makes Starbucks a place you want to be! The paid time off extends to when you are sick or a family member is sick, as stipulated on the company website. You can start enjoying this Starbucks employee benefit after 12 months of continuous service.
You will find it interesting that every July 1 and January 1, salaried Starbucks employees are entitled to one personal day. They expire if not used within the following six months. It is important to note that vacation benefits differ depending on location, role, and length of employment.
A current UX Researcher at Starbucks was quoted to have said, 'The work is not so stressful so that you can actually take time off without feeling guilty. No "approval" process, just take the time you need and let your team know. This is VERY different than the retail side – FYI.' in a separate review platform for Starbucks by Glassdoor. Along with other positive comments regarding this Starbucks employee benefit, it is tempting to assume that it is also one of the reasons you may consider Starbucks, your employer.
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4. Parental Leave
You should not worry about your parental duties if you seek to be employed at Starbucks. Starbucks employee benefits offer paid time off work to care for or make arrangements for the welfare of a child or dependent family member.
The average period of paid parental leave in the U.S. is 10 weeks, according to the U.S. Department of Labor. Starbucks employee benefits for parental leave are considerably more generous than the average. Starbucks is one of the few companies in the U.S. that provide paid parental leave for non-birth parents.
If you are eligible and welcome a new child, you may receive time off and pay replacement at Starbucks. There is also a Family Expansion Reimbursement of up to $10,000 per adoption, surrogacy or Intrauterine Insemination for eligible partners. The main reason for this benefit is to assist you with certain costs of growing your family.
Starbucks takes parental leave seriously. In 2021 alone, it is estimated that Starbucks paid over $60 million in parental leave benefits. These are high figures that are invested in Starbucks employee benefits. This investment is often paid back by loyalty to the organization. Research has found that workers on parental leave are more likely to return to work after their leave. Also, they are likely to be promoted in the future.
5. Education and Student Loan Management
This is one of the new Starbucks employee benefits. It was announced in September 2022 to support employees' financial well-being. Once eligible, Starbucks will offer you the opportunity to study for a Bachelor's degree. Starbucks employee benefits will cover 100% of tuition, coaching, counselling and advising through the top-ranked degree programs at Arizona State University.
The above is covered under the Starbucks College Achievement Plan (SCAP).
Under this Starbucks employee benefit is the Student Loan Management Benefit. The plan will provide you access to resources, tools, and coaching to manage student loan debts. A 2022 report by the National Student Loan Data System found that the average student loan debt for borrowers with bachelor's degrees was $30,000. This means that the Starbucks employee benefits can save you an average of $30,000 in tuition and fees.
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Conclusion
Starbucks' employee benefits package is one of the best in the industry. It helps foster a healthy work atmosphere and is intended to draw in and keep top talent. Starbucks' commitment to social responsibility is reflected in the benefits package. The business provides several initiatives to help its workers, their families, and the communities where it works.