Starbucks is sweetening the deal for current and prospective employees. The company announced Wednesday it is raising pay for US workers and taking steps to improve working conditions, the AP reports. In a letter to employees, Starbucks' North America President Rossann Williams said the raises will enhance recruitment efforts in a tough labor market, in addition to supporting current staff members. The company said it's raised pay three times now in 24 months. The wage plan, per USA Today, calls for:
Raises. All hourly pay workers will make at least $15 an hour and average nearly $17 by summer 2022. Some of the pay increases will start before the summer, the Seattle-based coffee giant said.
Seniority increases: Employees with two or more years of service will get a 5% raise in late January. Those with five or more years of employment could receive up to 10%.
Hiring efforts: Workers are eligible for a $200 recruitment bonus. Recruiters will be added to every US market.
When benefit increases added during the pandemic are included, Starbucks estimates the total cost at about $1 billion over the past two years. The company had announced in December that hourly pay would hit $15 over the next three years; this announcement speeds that up. Starbucks has no unions at its 8,000 company stores now, but workers at several locations in Buffalo are trying to form one. One of the issues those employees want solved is what they call consistent understaffing, per CNBC. Another complaint is inadequate training. Starbucks said it's increasing training time and redesigning its "Barista Basics" guide. (Read more Starbucks stories.)