Assessing Various Flexible Benefit Programs Utilized by the Starbucks to Gain Popularity
Currently, the demand for quality workers in the market requires organizations to provide more than a “fair daily compensation.” According to Bénabou & Tirole (2010), Workers’ benefits are the indirect type of compensations which are offered to an organizational workforce as a recruitment relationship. Employees’ demand for better benefits package has also been accelerating currently—workers have an increased familiarization to substantial compensation programs and they expect to receive these programs from their employers. The Starbucks has acknowledged the significance of valuing all the stakeholders and their assistance in harmonizing their business practices passionately to maintain competitive advantages as well as popularity (Condliffe, 2011). Starbucks has several attractive and flexible compensation programs such as health insurance, disability coverage, tuition compensations, commuter benefits, workers’ assistance, vacation, adoption assistance, credit union affiliation or membership, free shares, partner discounts, emergency funds, life insurance, free coffee, and food. These flexible compensations have made them to increase their popularity in the market. Therefore, this paper seeks to assess various flexible benefit programs utilized by the Starbucks to gain popularity.
Medical coverage; the Starbucks provide medical coverage for office visits, hospitalization, emergency care, mental health, chemical dependency treatment, prescription drugs, X-rays, and laboratory tests. They also cater for alternative health treatments like chiropractic care, acupuncture, and homeopathic care (Tučková, 2017). Therefore, the Starbucks has been able to gain popularity through the provision of medical coverage to the employees.
Life insurance; Starbucks offer essential life insurance protection for all stakeholders who are eligible to receive benefits. The nonretail and salaried partners have equal compensation which is received ones annually. Stakeholders have an access to supplementary protection which they can obtain through an automatic deduction on partners’ payroll. Partners may also obtain life insurance protection at a competitive collection rate for their dependent kids and domestic partner or spouse.
Disability protection; they provide fractional replacement of vanished salaries when an employee cannot perform his/her duties due to injury or illness. The disability protection offered by the Starbuck to employees is divided into; short-term infirmity which permits employees to continue receiving a partial salary for twenty-six weeks because of non-professional entire medical incapacity making them unable to conduct duties. Long-term incapacity offers incomplete replacement after the termination of the short-term incapacity. Nonretail stakeholders and salaried partners access this protection automatically, the Starbucks provide a hundred percent of the compensation premium (Bénabou & Tirole, 2010).
Recruitment assistance program; the Starbucks offer this program with the aim to assist in short-term counseling for issues related to stress, serious events in the place of work, emotional complications, and individual concerns such as legal, financial, and daily living issues (Tučková, 2017). The program is accessible to all United States partners and their entitled dependants irrespective to compensation eligibility.
Caring Unites Partners (CUP) Fund; the program offers monetary assistance to all Starbucks partners with financial issues brought about by sickness, partner’s death or death of a family member, natural catastrophes (Condliffe, 2011).
Adoption assistance; Starbucks offer monetary support to partners who have decided to adopt a child. The organization provides a maximum reimbursement of four thousand US dollars ($ 4,000) to assist in compensating for qualified charges associated with the adoption or acceptance of an eligible kid. Eligible partners for adoption also have an access to allowance compensation to cater for their expenses during the adoption process (Tučková, 2017).
Tuition reimbursement; Starbucks believes and invest in their partners’ potential. They provide complete tuition reimbursement via the Arizona State University to both full and part-time employees or partners to complete their degree programs. The reimbursement has provided a great opportunity for all Starbucks employees who have not completed their degree programs and are eligible for Starbucks United States compensations (Condliffe, 2011). The senior and junior employees or partners have the access to complete tuition reimbursement. While sophomores and first-year students obtain an incomplete scholarship in conjunction with need-based monetary assistance through the Arizona State University.
Commuter compensation program; Starbucks offers the most convenient method of paying for occupational commuter charges like transit passes via pre-tax staff deductions, saving employees funds on their shuttling expenditure (Tučková, 2017).
Individual days; Starbucks respect personal days of their employees and they are entitled strictly to both nonretail and salaried partners (Bénabou & Tirole, 2010). The organization award employees on the first day of January and July. The employees must obtain the compensation within the forthcoming six-month time.
In conclusion, this expose has assessed various flexible benefit programs utilized by the Starbucks to gain popularity. The Starbucks has recognized the implication of appreciating all stakeholders and their support in harmonizing their commercial practices to achieve, maintain competitive advantages and popularity in the market. The organization has numerous flexible compensation programs such as medical coverage, life insurance, disability coverage, workers’ assistance, adoption assistance, tuition compensations, commuter benefits, and individual days.
Bénabou, R., & Tirole, J. (2010). Individual and corporate social responsibility. Economica, 77(305), 1-19.
Condliffe, K. (2011). Balancing the Equities: Considering the Flip-Side of the Ubit and Forming a Workable Solution. Brook. J. Corp. Fin. & Com. L., 6, 211.
Tučková, K. (2017). Trends in Intercultural Marketing: The Reception of Starbucks in France and Czechia. Print.