“The way we have built our company by including the success of the company with everyone in it and not leaving our people behind is a great example of building a business the right way,” says Schultz. “We’re not ever going to turn our backs on our [employees].”
When Schultz was seven years old, his father was working as a diaper-service delivery driver. The job did not pay much, but it was enough. It was after he broke his ankle that tough times arose for the Schultz family. “He was beaten down, he wasn't respected,” recalls Schultz. “He had no health insurance, and he had no workers' compensation when he got hurt on the job.” With no sick pay or disability assistance, Schultz’s father was left helpless and the family was left with no food on the table.
It was this scenario that Schultz vowed to put an end to if he one day ever owned his own company. “I wanted to try and build the company that my father never got a chance to work for,” says Schultz. Today, according to Fortune magazine, Starbucks is the second best company to work for because of its generous employee benefits. Starbucks also has the lowest employee turnover rate of any food and beverage company. Indeed, Schultz credits his benefits package as one of the keys to his company’s dramatic success.
A part-time worker for Starbucks – and their same or opposite sex partner – is entitled to comprehensive health benefits, covering everything from medical, prescriptions, dental, and vision to hypnotherapy and naturopathy. The company also offers retirement savings plans, discounted stock options, income protection plans, adoption assistance plans, management bonus plans and support resources for child and elder care. Then, there is also the discounted Starbucks merchandise, the free pound of coffee or tea each week and all the drinks you can down during your shift.
“Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day,” says Schultz. “You can't expect your employees to exceed the expectations of your customers if you don't exceed the employees' expectations of management. That's the contract.”
By taking care of the people who work for him, Schultz has created a more loyal and dedicated workforce and has encouraged a higher level of customer service. He has also saved the money that is normally required in that industry to attract, train and retain strong employees. “My aim was to give our employees a vested interest in the company,” says Schultz. “And that, I think, has made all the difference.”
It is this connection Schultz has striven to maintain between himself, his company and the Starbucks employees and their families that has led to Schultz donating millions of dollars to such other causes as the Katrina hurricane relief fund and the California Giving Program. “We are as passionate about our commitment to our communities as we are about achieving financial success,” he says.
Lesson #4: Pull For Your People
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