Personnel policies are guidelines set by companies for their workers. These ensure that the employees know their rights, privileges, and what the company expects from them. According to Starbucks business code of conduct, Starbucks commits to follow all wage and hour laws and regulations fixed by the government (Glassdoor, 2014) Furthermore, the Starbucks' Global Human Rights Policy states that, Starbucks is committed to supporting and upholding the provision of basic human rights.(Global Assets) In spite of this, workers at Starbucks showed resentment in regard to their wages and working conditions. In 2004, a Starbucks Workers Union was formed that called for increased pay and raises, consistent scheduling, and an end to understaffing. (Starbucks Workers Union, 2013) They gathered to form their own website with the mission of uniting workers throughout the world. However, their Facebook page is relatively more active and provides a medium for workers to voice their demands. Starbucks Global Human Rights Policy also states that managers and employees are allowed to participate and involve in energetic and direct dialog. (Global Assets) This will help them solve joint problems and deal with mutual challenges. (Global Assets) In spite of that, the company failed to reach a joint agreement with their employees regarding their pay policy.
The minimum wage rate at Los Angeles is $8 per hour; but, a barista receives an average of $8.79 per hour at Starbucks. (Glassdoor, 2014) This is slightly above the minimum wage rate set by the government. Even though the company manages to comply with the minimum wage law set by the government, workers at Starbucks still feel that the company is exploiting them. One of the reasons for their retaliation is that the CEO of the company, Howard Schultz, earns more than $9,200 an hour. (Business Insider, 2013) This is at least 1,000 times the hourly wages of their sales associates. (Business Insider, 2013) This shows that the company generates enough revenue to overcome the cost of increase wages. Statistics also confirm the fact that this coffee business is generating substantial revenue as sales have increased. Starbucks now sells 46% more things an hour than it used to do five years ago. (Quartz, 2013) However, Starbucks is also one of the ten companies that pay Americans the least. (Huffington Post, 2013)
Low salary will not only decrease the employees' morale, but it will also dissuade people from establishing a lasting commitment with the company. People will work without the willingness to stay in the company for long. In addition to that, the company will fail to attract the best of the workforce. This is important in an era where companies continually struggle to employ the most qualified and skilled workers. Therefore, Starbucks should change its' compensation policy and raise wages to meet the employees' needs. Recently, Howard Schultz also gave a public statement that signified that he supports the governments' idea of increasing the minimum wage rate. He said, 'On balance, I am a supporter of the minimum wage going up.' (Huffington Post, 2013) He also called the figure $8.78 as 'misleading' because it did not take into account the tips or boosts in workers' salary overtime. (Huffington Post, 2013) However, the Federal Court of New York upheld a lower-court ruling recently and passed a verdict that Starbucks baristas will have to share their tips with the 'shift' supervisors. (NY Daily News, 2013) This means that the figures are not misleading to a great extent. The case was taken to court by Baristas because they felt that their income was already very low. According to them, the supervisors did not work as hard as they did to earn those tips. At the same time, the Federal Court announced that the group of baristas at the Seattle-based coffee chain will get $14 million as a compensation for tips that they had already missed.(Huffington Post, 2013)
Therefore, it is set that the company needs to change its' policy regarding wages. Since the CEO has the same opinion as the governments' regarding wage increase; he can set an example by increasing the wages that he offers to its 'partners'(workers). This wage rise will gain the trust of workers over its' employees and will lessen their retaliation. Apart from that, it will prevent future incidents similar to the one witnessed in court. Starbucks should clearly mention policy regarding the tips workers receive so that the employees are well-aware for what they sign up. A wage rise will make the company attractive for new entrants in the workforce. This will provide Starbucks to recruit more refined and skilled workers.
2. Recruitment and selection:
Starbucks undergoes the process of attracting, screening,...
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