EXECUTIVE SUMMARY
This report discusses about the effective HR practices and policies of Starbucks cooperation.
The purpose of this report is to analyze Starbucks‟ recruiting practices, training and
development structures, Work culture, welfare benefits programs and overall company
Human resource management strategies in order to give a clear understanding to the reader in
how this coffee company stands out from its competitors and remain a successful cooperation
in spite of the challenges they are facing as a company.
Starbucks is a coffee company, began in 1971 in Seattle, US and now it has become a large
cooperation working at world level in 44 countries with 15000 stores. Starbucks is known for
its special coffee brand and roasters (Starbucks Coffee Company, n.d.).
At Starbucks; employees are its significant resource, in other words Starbucks address its
employees as “Partners”. According to CEO Schultz, they can make or break company
(Hammers, 2003). That‟s why it is important for Starbucks to recruit and select right people,
training them properly, motivating them to give their best performance and encouraging them
to stay and grow with company. Thereby the company has developed its HR policies and
practices to provide satisfying job to its partners, a positive work environment, appropriate
work schedules, fair compensation and benefits for employee-wellbeing (Starbucks Coffee
Company, n.d.).
Present years Starbucks faces numerous challenges in its HRM, due to the increasing number
of employees with its rapid expansion. Starbucks has to bear with huge HRM costs to
maintain its HRM policies and practices. Analysts are arguing whether the Starbucks will be
able to remain as a positive employer with these rising challenges in its Human Resource
Management due to its growth in the future.
Finally the report shows some of the important lessons that local organizations can add up
and learn from Starbucks Human Resource Management to its company operations and to
develop their employees to achieve competitive advantage.
IV
, INTRODUCTION
Starbucks is a Seattle, Washington Coffee Company. It sells whole bean coffee, coffee drinks
through an international chain of retail-outlets. From its start as a coffee-seller, Starbucks has
evolved into a business where the people can purchase food items, beverages and packed
coffee. Starbucks is known for changing the way people around the world-view in consuming
coffee and its success has recognized globally.
The study exhibits the Starbucks HRM policies and challenges in a detailed manner. As it
mentioned, Starbucks is well-known for its employee-friendly policies and work-supportive
culture. Starbucks marked its named for its benefits program to part-time workers too.
Starbucks has a relatively low employee-turnover and employees were among the most
productive in the industry. Starbucks generous HR policies made sense, as the company kept
the turnover low.
Even though Starbucks was popular as an employer, its main challenge is to continue to attract
and retain the right kind of employees in the right numbers for procure its expansion. Yet, three
possible problems need to be addressed by the Starbucks,
Would Starbucks be able to support its employees with the same level of benefits in the
future, because of increasing employees
Would Starbucks be able to retain employees if it made any move to lower its HR
policies by cutting-down benefits
Would Starbucks be able to maintain its company culture, vital aspect in its past growth
Based on the information provided in the case, the report answers the following four questions;
1. Discuss the ways Starbucks identify and attract people. Critically comment whether the
staffing practices effectively recruit the right kind of people.
2. Discuss the role of human resource management in building a supportive work culture.
3. Comment on Starbucks’ generous human resource policies. Given the large increase in the
number of employees in the last ten years, would the company be able to retain employees
if it made a move to lower its human resource costs by cutting down on benefits?
4. Based on the above analyses; choose one particular organisation in Sri Lanka, and discuss
five important lessons that the local organisation may learn from Starbucks’ HRM.
7
, QUESTION 01:
Starbucks recruitment process (Refer Appendix 1 for Starbucks Recruitment Methods) is a
pivotal strategy in achieving its goals for finding the right kind of individuals to proceed with
its business strategy. Starbucks recruitment strategies involve strategic HR Planning and uses
Social Recruitment via online through its websites to target its hiring audience.
About 70% of Starbucks are promoted within the company (Rudulph, 2014). Starbucks‟ Social
recruitment strategy is one to praise for its cohesive branding, un-doubtful ability to
communicate personnel messaging to its target hiring-audience. Starbucks uses social
recruitment accounts (Refer Appendix 2 for Starbucks Social-Recruitment Accounts) to
exhibits how Starbucks is a great place to learn and grow, featuring its partners as stars.
The face of Starbucks is its baristas and its look for individuals from just about every career
discipline. Starbucks hiring has made concerned effort in attracting Millennials, which
represent 80% of its workforce. Starbucks understands Millennials are its future, and sees those
as future thought leaders (Rudulph, 2014). Starbucks has made several initiatives to make
individuals work in 20s particularly attractive.
Rudulph (2014) noted Starbucks looks every candidate to have a genuine desire for connection
to Starbucks and its community. Simply Starbucks looks for individuals with aptitude to drive
results to bring something new to Starbucks.
When asked what it takes to attract the best people, Starbucks executive Dave Olsen replied
“Everything matters”, everything it does as a company makes its to attract right talent (Singh,
2014). Starbucks understands proper environment is the key to calls the right people to them.
Starbucks believes environment focus on trust is the way to get exceptional performance and
productivity from people. According to Russo (2010), the trust factor of Starbucks has at least
five elements:
01. Building infrastructure will enable people to take risks without fear
02. Starbucks makes its partners accountable not just responsible
03. Starbucks trusts people understand good service
04. When people understand good service, they will be creative when delivering it
05. Its people will pass on these beliefs, values when new people come
8
This report discusses about the effective HR practices and policies of Starbucks cooperation.
The purpose of this report is to analyze Starbucks‟ recruiting practices, training and
development structures, Work culture, welfare benefits programs and overall company
Human resource management strategies in order to give a clear understanding to the reader in
how this coffee company stands out from its competitors and remain a successful cooperation
in spite of the challenges they are facing as a company.
Starbucks is a coffee company, began in 1971 in Seattle, US and now it has become a large
cooperation working at world level in 44 countries with 15000 stores. Starbucks is known for
its special coffee brand and roasters (Starbucks Coffee Company, n.d.).
At Starbucks; employees are its significant resource, in other words Starbucks address its
employees as “Partners”. According to CEO Schultz, they can make or break company
(Hammers, 2003). That‟s why it is important for Starbucks to recruit and select right people,
training them properly, motivating them to give their best performance and encouraging them
to stay and grow with company. Thereby the company has developed its HR policies and
practices to provide satisfying job to its partners, a positive work environment, appropriate
work schedules, fair compensation and benefits for employee-wellbeing (Starbucks Coffee
Company, n.d.).
Present years Starbucks faces numerous challenges in its HRM, due to the increasing number
of employees with its rapid expansion. Starbucks has to bear with huge HRM costs to
maintain its HRM policies and practices. Analysts are arguing whether the Starbucks will be
able to remain as a positive employer with these rising challenges in its Human Resource
Management due to its growth in the future.
Finally the report shows some of the important lessons that local organizations can add up
and learn from Starbucks Human Resource Management to its company operations and to
develop their employees to achieve competitive advantage.
IV
, INTRODUCTION
Starbucks is a Seattle, Washington Coffee Company. It sells whole bean coffee, coffee drinks
through an international chain of retail-outlets. From its start as a coffee-seller, Starbucks has
evolved into a business where the people can purchase food items, beverages and packed
coffee. Starbucks is known for changing the way people around the world-view in consuming
coffee and its success has recognized globally.
The study exhibits the Starbucks HRM policies and challenges in a detailed manner. As it
mentioned, Starbucks is well-known for its employee-friendly policies and work-supportive
culture. Starbucks marked its named for its benefits program to part-time workers too.
Starbucks has a relatively low employee-turnover and employees were among the most
productive in the industry. Starbucks generous HR policies made sense, as the company kept
the turnover low.
Even though Starbucks was popular as an employer, its main challenge is to continue to attract
and retain the right kind of employees in the right numbers for procure its expansion. Yet, three
possible problems need to be addressed by the Starbucks,
Would Starbucks be able to support its employees with the same level of benefits in the
future, because of increasing employees
Would Starbucks be able to retain employees if it made any move to lower its HR
policies by cutting-down benefits
Would Starbucks be able to maintain its company culture, vital aspect in its past growth
Based on the information provided in the case, the report answers the following four questions;
1. Discuss the ways Starbucks identify and attract people. Critically comment whether the
staffing practices effectively recruit the right kind of people.
2. Discuss the role of human resource management in building a supportive work culture.
3. Comment on Starbucks’ generous human resource policies. Given the large increase in the
number of employees in the last ten years, would the company be able to retain employees
if it made a move to lower its human resource costs by cutting down on benefits?
4. Based on the above analyses; choose one particular organisation in Sri Lanka, and discuss
five important lessons that the local organisation may learn from Starbucks’ HRM.
7
, QUESTION 01:
Starbucks recruitment process (Refer Appendix 1 for Starbucks Recruitment Methods) is a
pivotal strategy in achieving its goals for finding the right kind of individuals to proceed with
its business strategy. Starbucks recruitment strategies involve strategic HR Planning and uses
Social Recruitment via online through its websites to target its hiring audience.
About 70% of Starbucks are promoted within the company (Rudulph, 2014). Starbucks‟ Social
recruitment strategy is one to praise for its cohesive branding, un-doubtful ability to
communicate personnel messaging to its target hiring-audience. Starbucks uses social
recruitment accounts (Refer Appendix 2 for Starbucks Social-Recruitment Accounts) to
exhibits how Starbucks is a great place to learn and grow, featuring its partners as stars.
The face of Starbucks is its baristas and its look for individuals from just about every career
discipline. Starbucks hiring has made concerned effort in attracting Millennials, which
represent 80% of its workforce. Starbucks understands Millennials are its future, and sees those
as future thought leaders (Rudulph, 2014). Starbucks has made several initiatives to make
individuals work in 20s particularly attractive.
Rudulph (2014) noted Starbucks looks every candidate to have a genuine desire for connection
to Starbucks and its community. Simply Starbucks looks for individuals with aptitude to drive
results to bring something new to Starbucks.
When asked what it takes to attract the best people, Starbucks executive Dave Olsen replied
“Everything matters”, everything it does as a company makes its to attract right talent (Singh,
2014). Starbucks understands proper environment is the key to calls the right people to them.
Starbucks believes environment focus on trust is the way to get exceptional performance and
productivity from people. According to Russo (2010), the trust factor of Starbucks has at least
five elements:
01. Building infrastructure will enable people to take risks without fear
02. Starbucks makes its partners accountable not just responsible
03. Starbucks trusts people understand good service
04. When people understand good service, they will be creative when delivering it
05. Its people will pass on these beliefs, values when new people come
8
