The impact of increasing globalization has also impacted Starbucks which thrives in intensified competition. When it comes to the service industry, the companies serve similar products to the customers as the first-line staff makes direct contact with the customer to understand their needs and wants. Hence, businesses need to provide training, reward and motivation to their employees for serving the best quality.
Starbucks corporation has renowned itself as the largest coffee retail shop in the world by selling coffee beans and numerous types of tea and coffee drinks. The company owns more than 4000 stores in the world and became the fastest-growing entity in the US. The reason behind such a huge success and popularity does not occur just only because of the quality coffee but also with good customer service and a comfy environment. The company has defined its core values as quality, culture, ambience and service.
Challenges
The service industry is challenging to survive as the main issue is quality. However, when it comes to Starbucks, the task of managing quality is easier due to its highly motivated workforce. The key motivation of employees is to provide a stress-free atmosphere to make the customer comfortable with the place. Further, employees work for gaining personal satisfaction which is reflected in customer satisfaction. Hence, the workers are efficient to provide quality services to customers.
One of the key challenges for Starbucks is to keep its workers and employees motivated. The company ensures to provide several benefits to their workers to satisfy their needs. Hence, staff works with a motive to meet customer satisfaction.
Facts
Starbucks has established to build a comfortable environment for customers to get socialised easily helping to attract customers of all different ages to the restaurant. On the other hand, one of the hidden reasons for the success of Starbucks is the highly-motivated workforce. As per the 2006 survey, the turnover rate of Starbucks is 65% and 25% for their employees and managers which is comparatively low compared to the industry average which is 150% and 400% respectively in retail chains in the US. The business model of Starbucks works on customer satisfaction, corporation, employee motivation, and teamwork.
Let us understand the key motivators for employees in Starbucks to maintain their passion for work.
Equality
Starbucks does not treat their staff as employees but as partners to offer equal treatment. The supervisor of Starbucks stores is also called partners. Equal treatment has helped to narrow down the gap between employees and managers. It motivates employees at different levels to be part of the company.
Listening to Employees
Starbucks maintain organized communication between employees and managers to create a sense of importance. Managers ensure to schedule workload and break their workers into different timeframes to fulfil requirements. Plus, they organise weekly interviews to measure the needs of employees. The survey called “Partner View Survey” is conducted every 2 years.
Quality Welfare Measures
Starbucks offers several welfare policies such as product discounts, vacations, stock dividends, and medical insurance for all levels of employees. The stock dividend offering increase motivation factors for employees to enhance sales and profits for the company. Moreover, employees working for more than 20 hours a week can claim extra benefits.
Team Work
The teamwork aspect allows an organization to construct a small and solid social structure to enhance socialization and share skills with one another. Teamwork helps to increase unity by combining several skills to fulfil at Starbucks.
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References
Alwaleed, N., Al Huwail, N.H., Singh, S. and AlMejhem, A., 2019. A case study on Starbucks. Journal of the Community Development in Asia (JCDA), 2(2).
Schultz, H., 2012. Pour your heart into it: How Starbucks built a company one cup at a time. Hachette UK.
Edwards, H., 2015. Social responsibility and the evolution of corporate philanthropy: An analysis of successful corporate-cause partnerships in an era of the global corporate citizen. PRism, 12, pp.1-14.
