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Starbucks offers massive perk to employees

Starbucks cups

(Reuters) - Starbucks Corp said it plans to partly pay for an online bachelor's degree program for its employees in the United States, hoping to retain its workforce and save on hiring and training costs.

The world's largest coffee chain is teaming up with Arizona State University to subsidize education for its U.S. employees who work an average of 20 hours a week.

Starbucks To Offer Online College Program To Workers

As of September 2013, Starbucks had 137,000 employees, about three-fourths of its global workforce, in the United States.

Employees enrolling in the program, called the Starbucks College Achievement Plan, can choose among 40 subjects ranging from retail management to electrical engineering and will be under no obligation to remain with the company after graduation.

Employees admitted to the university as a junior or senior will earn full tuition reimbursement for each semester of full-time course work, while freshmen and sophomores will be eligible for a partial tuition scholarship, the company said in a statement on Sunday.

Starbucks declined to estimate how much it expects to spend on the program. "We will know more of what the investment will be once partners (employees) sign up over the next year," Starbucks spokeswoman Laurel Harper said in an email.

Starbucks' investment in its employees' education comes as it grapples with higher dairy costs. The company has locked in coffee prices for the rest of this fiscal year.

Harper declined to comment on employee retention rate in the company, citing competitive reasons, but said Starbucks has achieved retention rates "well above the industry average."

(Reporting by Sampad Patnaik in Bangalore and Lisa Baertlein in Los Angeles; Editing by Gopakumar Warrier)

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John June 16 2014 at 6:23 AM

Hey they are doing something! yeah! Who cares about the stupid details... Good for Starbucks.

Flag Reply +42 rate up
4 replies
coopdabomb June 16 2014 at 5:31 AM

It's amazing what can be done with a $3.75 profit on a $4.00 cup of lib coffee

Flag Reply +29 rate up
18 replies
dbroto June 16 2014 at 4:43 AM

Great idea, but why only online BA degrees? I don't know about this particular institution, but I doubt an online BA in Electrical Engineering is as useful as one in a physical university where you can touch the electronics, not just your computer keyboard. Why not support local educational institutions as well by covering even 50% of tuition costs in certain categories of colleges/universities?

Flag Reply +22 rate up
28 replies
rjollierroger June 16 2014 at 7:49 AM

Its good to see a Co. do something for its employees. But the same people who post, that are jealous of Union Employees, seem to be jealous of anyone working that has a GOOD JOB. It is also good to see a Co. recognize that it is better to pay good and have good benefits, than to have a revolving door, where they are constantly having to hire and train new employees, because old ones leave for better jobs. As for an online degree, I see no problem with that, I know people who got their degrees online, and it has opened doors for them.

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5 replies
Tom June 16 2014 at 7:45 AM

"Sir here is your Cupa-Joe-latte, that will be $74.95."

Flag Reply +14 rate up
1 reply
mociambz Tom June 16 2014 at 9:23 AM

sell their stock profits are going in the toliet

Flag Reply +2 rate up
1 reply
jejozi mociambz June 16 2014 at 9:50 AM

If it helps retain employees it will pay off in spades. Recruiting, hiring, training and the costs associated with new employees (pos mistakes, for example) will be greatly reduced. And customers are more likely to continue patronizing a store where they have a more personal relationship with the employees, which will happen when you retain your staff. Plus, many people will support the company because they're being a good employer. Buy.

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plewdawg June 16 2014 at 6:33 AM

This is great news! Anti 2nd amendment, pro gay and abortion, over priced so so coffee, rude baristas who are over paid and now a "free" lib education. Watch, somewhere here, some libs still wont be satisfied or happy.

Flag Reply +12 rate up
22 replies
Jay June 16 2014 at 8:07 AM

FYI people......they aleady charge an extra dollar per cup to pay for health insurance. This means that they are already making too much off of this price increase alone when you take into account the amount of cups they serve in a month. Again another Starbucks rip off just like charging firefighters for water on 9-11.

Flag Reply +11 rate up
4 replies
pty014372 June 16 2014 at 7:56 AM

This makes perfect sense. An online degree from ASU qualifies you for nothing more than making coffee anyway.

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5 replies
maa2626 June 16 2014 at 7:33 AM

it is a good idea, starbucks does seem to do a good job of taking care of employees. BUT, starbuck prices are quite high when comparing it to other places to buy coffee. Its what would happen across the board to the food and service industry. The menu board pricing would be quite different with starbuck pricing. Its neat to give people choices to support a company that invests in its employees. I really am not a fan of starbucks or its coffee but I may stop for a tea in support of its policies. Same reason I support chick fillet, its closed on sundays.,

Flag Reply +7 rate up
4 replies
Jay June 16 2014 at 8:03 AM

"Save on hiring and training costs".....So they are saying you need a degree to make a cup of coffee? Get real this is a job any monkey can do.

Flag Reply +6 rate up
9 replies
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