Topics: Salary, Employment compensation, Health insurance Pages: 5 (1188 words) Published: June 19, 2012
International Compensation – Starbucks Case

Starbucks takes good corporate citizenship seriously. Among Starbucks’ many initiatives is its association with Fair Trade and Conservation International to help farmers in third-world countries get a premium for the coffe they grow.

But in the other side, there are still some problem that faced by Starbucks. Worker complaints from Starbucks’ baristas in the past couple of years have resulted in negative publicity for Starbucks. Recently, an outburst from an employee that worked at a California Starbucks went viral on Youtube. The employee in the video complained about impolite customers and dissatisfaction at work. The video has over 900,000 views. Other complaints that have caused negative publicity for Starbucks are comments from part-time employees that they have no guaranteed number of work hours per week, and complaints that the wage is barely above the minimum wage (Starbucks Baristas 8).


Starbucks calls its employees “partners” because the company strives to provide employees with a positive workplace based on a direct and open relationship. This includes providing partners with comprehensive benefits. Starbucks has consistently been rated in the top 100 companies to work for due to its rare benefits for part-time employees. The company’s “partners” are eligible for benefits if they work at least 20 hours per week, which includes 64% of the current American work force .The benefits plan is also championed as economical; the most affordable plan is only $6.25 per week.

1. Starbucks’ benefits include health coverage, income protection, reimbursement accounts and several other programs (“Facts About Starbucks and Our Partners”).

2. Health insurance programs are consistent for both hourly and salaried workers. The program includes medical, dental and vision insurance. The medical insurance offering contains coverage for hospitalization, office visits, labs and x-rays, emergency care, prescription drugs, mental health and chemical dependency treatment. The dental insurance coverage includes preventative, basic and major services. Partners pay less out-of-pocket when services are received from a preferred provider. Health and dental insurance are administered through Premera Blue Cross.

3. Starbucks’ vision plan covers eye exams, lenses, frames and contacts, and is administered through VSP (“Your Special Blend”).

Reimbursement accounts, including healthcare and dependent care, are eligible (memenuhi syarat) for salaried and non-retail hourly workers. The Health Care Reimbursement Account allows contributions of $100 to $5,000 each year to pay for out-of-pocket healthcare costs. The Dependent Care Reimbursement Account allows contributions of $2,500 or $5,000, depending on marital status to pay for dependent care expenses.

Additionally, Starbucks’ provides basic life insurance and sick pay for salaried and non- retail hourly partners (“Your Special Blend”).

Moreover, partners are eligible for disability coverage, accidental death and dismemberment insurance, counseling services, financial assistance programs, and adoption assistance. Disability insurance encapsulates short term, meaning twenty six weeks or less, and long-term disability. Benefits eligible partners are able to purchase accidental death and dismemberment insurance, an entirely optional program. The counseling service Starbucks provides is called the “Employee Assistance Program,” which covers “stress-related issues, emotional difficulties, critical incidents in the workplace and other concerns.” Starbucks offers the “Caring Unites Partners Fund,” which financially assists partners who fall upon difficult times such as illness, natural disaster or death in the family. Finally, Starbucks subsidizes partners who have chosen to adopt children by up to $4,000 (“Your Special Blend”).

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