starbucks' employee incentive mechanism
Starbucks was born in Seattle, USA in 1971. It started by selling coffee beans, and now it has developed into a large enterprise with more than 5,111 retail stores on four continents. Its rise depends not on marketing skills, but on the importance of "relationship theory", especially the relationship with employees. So what is Starbucks' employee incentive mechanism? The following is the relevant content I compiled, welcome to read for reference!
1. Wage and welfare system
The success or failure of retail and catering industries depends largely on their service level, but the income of waiters in these enterprises is the lowest and the mobility is the greatest. Many service-oriented enterprises reduce their operating costs by cutting employees' welfare benefits in order to seek short-term profits, which will undoubtedly lead to the decline of internal cohesion and the flow of personnel, which is accompanied by the decline of core competitiveness of enterprises. In the long run, this will seriously affect the brand reputation of enterprises.
Starbucks is aware of the importance of employees in brand communication. It believes that the success of Starbucks mainly depends on customers having a very good consumption experience in the store, which means that the clerk must be very familiar with all the products of the company, be able to convey the coffee culture of the company to customers enthusiastically, and have enough skills and personality to provide consistent and pleasant services. Therefore, it is particularly important to enhance the trust relationship between management and employees, so as to attract and motivate those employees who work hard and have excellent performance. For this reason, Starbucks has created its own brand management method, and used the expenses originally spent on advertising for employee welfare and training. In the second half of 1988, the policy of providing perfect medical care for temporary workers was implemented. The policy stipulates that all part-time employees who work more than 21 hours a week have the right to enjoy the same commercial insurance as full-time employees, and at the same time, each employee can get 75% medical expenses provided by Starbucks. With the development of this welfare, the scope of medical expenses provided by the company is also increasing, covering preventive medical care, health consultation, teeth, eyes, psychotherapy and other medical and health care fields. In fact, because Starbucks employees are mostly young and healthy, the company's actual expenditure on this medical insurance is not high, but this investment has quickly received a huge return. Starbucks attracts good employees and makes them stay longer. More importantly, the mental outlook of employees has changed greatly, and they are more conscientious in everything they do. A good salary and welfare system has greatly changed the working attitude of employees and laid a solid and stable foundation for the development of Starbucks.
Second, the stock option system
For an enterprise, the incentive system is diverse, and there are organic links among various incentive systems, so it is particularly important to flexibly use various incentive methods to form a rational combination, and Starbucks is aware of this. In Starbucks, employees are called "partners" instead of "employees". This is not a word game, but a strategic arrangement supported by a real, affordable and colorful stock option plan. Under this arrangement, every employee has the opportunity to become a' shareholder' of Starbucks, so he is called a' partner'.
III. Stock Investment Plan
Starbucks has further started the stock subscription plan on the basis of providing salary and welfare system for all employees, so that each employee holds shares and becomes a partner of the company, so as to link each employee with the overall performance of the company. According to this plan, before the start of each subscription season, all employees who have been employed by Starbucks for more than 91 consecutive days and work for no less than 21 hours a week have the opportunity to buy shares of the company by deducting part of their salaries or at a discount price. Before the subscription is about to start, the company will mail the subscription materials to employees' homes, and each employee's subscription fund limit is 1%-11% of his basic salary. At the end of each quarter, the company will choose a lower Starbucks stock open market price and buy the employees' deducted salary at a discount of 1.5% lower than the market price, that is, at a price of "15% off".
IV. Coffee bean option plan
On the basis of the stock option plan, Starbucks has further launched the coffee bean option plan. Compared with the previous stock investment plan, the plan gives more employees the right to buy and own Starbucks shares, with the aim of enabling employees to fully share the company's operating results. The plan stipulates that employees who have been employed by Starbucks continuously and have been paid no less than 511 hours' salary have the right to enjoy the plan from April 1 to the end of the fiscal year, or from the beginning of each fiscal year to March 31 of the following year, or from April 1 to the official implementation of the plan that year. Managers and above do not participate in the "coffee bean" option plan, but can participate in the stock option plan specifically for "key employees".
V. Stock option reward
On the basis of comprehensive consideration of the company's annual performance, the board of directors of the company will consider giving certain stock options to qualified personnel as a reward every year. The number of stock options that employees should get is determined by the following three main factors: the operating status and yield of the current year (fiscal year); The basic salary of the individual in the fiscal year; The pre-purchase price of the stock or the price promised by the company. The waiting period of the company's stock options is five years, and any eligible partner can buy shares according to the stock purchase plan. When purchasing shares, partners can get a 1.5% discount through salary discount, so that as long as the stock rises, the stock options will become more and more valuable.
The rich stock option plan is not only a useful supplement to the basic salary of employees, but also a reward for employees who have served the company for a long time and made corresponding achievements. It also skillfully combines the interests of employees and enterprises, giving full play to the incentive combination effect. Starbucks takes the initiative to establish "the same body of interests" with employees, so that employees can have fun from their work, form their sense of belonging and identity with the enterprise, and further meet their self-realization needs.
Starbucks' summary of effective incentive methods for various types of employees
1. Executives-using stock rights and options
2. Key employees in sales-using commission
3. Old employees-welfare
4. Excellent employees who have been working for a long time-bonuses;