(DailyDig.com) – Starbucks said on November 6 that it would increase the hourly wage of their retail workers in the US by at least three percent. Since its coffees are in high demand among the young and well-off, they will increase the number of its stores. On January 1, 2024, the wage hikes will be implemented.
After reporting yearly revenue approaching $36 billion, with sales up eight percent from the preceding fiscal year, Starbucks has decided to increase compensation for its employees. The corporation claims that its investment of over $1 billion in its personnel and the improvement of its shops since 2022 have helped it keep its employees.
It has nearly 17,000 outlets in North America, and its U.S. workers earn an average income of $15 through $24 an hour. Their total compensation, including benefits, is about $27 an hour.
Last week, Starbucks announced plans to roughly double its worldwide shop count from 38,000 to 55,000 by the year 2030. Over the following two years, they want to increase the hourly earnings of baristas from what they were in 2020 by increasing compensation and increasing hours worked. Wage increases will not result in menu pricing hikes.
Those who have been with Starbucks for longer might expect higher pay increases. Employees who have worked for the company for two through five years might get a four percent raise, while those who have worked for the company for five plus years could receive a five percent raise.
According to Starbucks, union and non-union employees who have been with the firm since September 2023 should anticipate salary increases in the next year. Union workers will get raises depending on the businesses’ current and historical trends. It is a change in policy for the corporation to increase pay for both non-union and union workers.
Starbucks said that since fiscal year 2020, overall cash pay per employee per hour has climbed by about fifty percent due to these expenditures, which have significantly reduced turnover.
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