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It isn't too hard for Starbucks to justify an investment in analytic technology because they are so people oriented company. We're a very people-centred company. They state that “In our business, people are the single most important component of our success, so it's a priority for the business. It's almost a given for this company.”
In my report Kalen Holmes will be highlight. She is the executive vice president of the Partner Resources in the Starbucks franchise; secondly I will discuss what sort of positions Starbucks needs for each location; and finally I will discuss the Starbucks work place environment and what benefits the employees/ partners receive.
Managing Starbucks' HR operations
(The company prefers ‘partner resources') is certainly a major challenge. The international division has more than 2,500 stores spread across 35 countries, and between 35,000 and 40,000 employees (the exact numbers are hard to calculate because of partnering arrangements in different countries). Australia alone has 48 stores and 750 employees. In total, Starbucks has 9,000 stores and more than 100,000 employees. And to manage job Starbucks has hired Kalen Holmes.
Kalen Holmes Joined Starbucks in November 2009 as executive vice president, Partner Resources. She brings a passion for serving the more than 120,000 Starbucks partners (employees) worldwide as leader of Starbucks global human resources organization and strategy. Kalen reports to Howard Schultz, chairman, president and chief executive officer, and is a member of Starbucks senior leadership team.
All kinds of people work at Starbucks.
At the Regional Offices across Hungary, we need people in all kinds of fields for our professional services positions. As well as being the front face of the company and this entails;
Baristasare the face of Starbucks. They create an uplifting experience for our customers and make perfect drinks... one drink and one customer at a time.
Shift Supervisorsare expert baristas who help to direct work during shifts and to create great experiences for our customers.
Assistant Store Managerswork alongside baristas and shift supervisors, helping to coach and support them. They also develop their management skills while helping their Store Managers run great stores.
Store Managersmanage their store's operations and are responsible for financial results. They develop, coach and train in-store partners as they work side-by-side, and they're responsible for the quality of customer service and beverages in their stores.
District Managershelp Store Managers learn to solve problems and drive business results. They're accountable for having all stores in their districts meet every standard of quality. And they build local strategies to manage their district's performance by knowing their markets, their communities and their customers.
Work Place Environment
A strong workplace environment: Starbucks is devoted to investing in, supporting and engaging their partners in the constant reinvention of Starbucks.
Diversity: At Starbucks, diversity is an essential component of the way they do business.
Training & Education:they guide all new partners through an extensive orientation and fundamental training program to provide a solid foundation for career advancement at Starbucks. Accommodating fast growth also meant putting in systems to recruit, hire, and train baristas and store managers. Starbucks' vice president for human resources uses some simple guidelines in screening candidates for new positions: "We want passionate people who love coffee . . . We're looking for a diverse workforce, which reflects our community. We want people who enjoy what they're doing and for who work is an extension of themselves."
Every partner/barista hired for a retail job in a Starbucks store receives at least 24 hours training in the first two to four weeks. The training includes classes on coffee history, drink preparation, coffee knowledge (four hours), customer service (four hours), and retail skills, plus a four-hour workshop called "Brewing the Perfect Cup." Baristas are trained in using the cash register, weighing beans, opening the bag properly, capturing the beans without spilling them on the floor, holding the bag in a way that keeps air from being trapped inside, and affixing labels on the package exactly one-half inch over the Starbucks logo. Beverage preparation occupied even more training time, involving such activities as grinding the beans, steaming milk, learning to pull perfect (18- to 23-second) shots of espresso, memorizing the recipes of all the different drinks, practicing making the different drinks, and learning how to make drinks to customer specifications. There are sessions on how to clean the milk wand on the espresso machine, explain the Italian drink names to customers, sell an $875 home espresso machine, make eye contact with customers, and take personal responsibility for the cleanliness of the coffee bins. Everyone is drilled in the Star Skills, three guidelines for on-the-job interpersonal relations:
1. Maintain and enhance self-esteem,
2. listen and acknowledge, and
3. Ask for help.
And there were rules to be memorized: milk must be steamed to at least 150 degrees Fahrenheit but never more than 170 degrees; every espresso shot not pulled within 23 seconds must be tossed; customers who order one pound of beans must be given exactly that—not .995 pounds or 1.1 pounds; never let coffee sit in the pot more than 20 minutes; always compensate dissatisfied customers with a Starbucks coupon that entitles them to a free drink.
Management trainees attend classes for 8 to 12 weeks. Their training is much deeper, covering not only the information imparted to baristas but also the details of store operations, practices and procedures as set forth in the company's operating manual, information systems, and the basics of managing people. Starbucks' trainers are all store managers and district managers with on-site experience. One of their major objectives is to ingrain the company's values, principles, and culture and to impart their knowledge about coffee and their passion about Starbucks.
Each time Starbucks opens stores in a new market, it undertakes a major recruiting effort. Eight to 10 weeks before opening, the company places ads to hire baristas and begin their training. It will send a star team of experienced managers and baristas from existing stores to the area to lead the store-opening effort and to conduct one-on-one training following the company's formal classes and basic orientation sessions at the Starbucks Coffee School which in our case will be in Budapest.
Coffee Education:is acourse focusing on the Starbucks passion for coffee and understanding our core product. And is a major part of the job training.
Total Pay (Compensation, Stock, Benefits and Savings):Starbucks Total Pay package is referred to as “Your Special Blend” because it is unique to each partner. Partners that work full time or part time (20 hours or more per week) may participate in a variety of programs, and make choices based on individual needs and interests.
Depending on job and personal situation, a partner's total pay package may include:
* Progressive Compensation Package
* Healthcare Benefits (Medical, Prescription Drugs, Dental and Vision)
* Retirement Savings Plan
* Stock Options and Discount Stock Purchase Plan
* Income Protection Plan (Life and Disability Coverage)
* Management Bonus Plan
* Adoption Assistance Plan
* Domestic Partner Benefits
* Referral Programs and Support Resources for Child and Eldercare
* Discounted Starbucks Merchandise
Starbucks has 6 main goals:
1. Creating a great work environment,
2. Embracing diversity,
3. Building strong relationships with customers,
4. Contributing to the community,
5. Pursuing excellence in coffee and
6. Ensuring profitability - is the main driver for HR.
Dealing with growth is also critical, as the company has tripled in size in the last three years. Indeed, many of the key metrics the partner resources division tracks are business-centric rather than classic HR measures, and therefore their systems and technology support need to be first class.
Since retail turnover is very high and given the fact that Starbucks is retail focused traditional measures such as staff mix are important. In fact Starbucks' current rate of turnover is well below the average.
Other key measures include stability of store manager appointments. Starbucks conducts regular partner engagement and satisfaction surveys online to track sentiment in the workplace.
Overall it is apparent that Starbucks puts a huge amount of financing and marketing in order to attract and maintain partner relations with its' future and current employees.
In order to attract and retain these same types of employees that would suit the Hungarian market the company will need to put the same if not more efforts in order to receive the same customer satisfaction level that is reached worldwide.