Starbucks will increase its compensation floor for its workers to $15 an hour by next summer, as it announced Wednesday that baristas’ wages can at least be doubled in 2022.
The coffeehouse company made the announcement amid the difficulties restaurants and bars face in terms of hiring sufficient employees to operate their services as demand increases, CNBC reported.
The challenges in labor had been suffered by some U.S. businesses, including McDonald’s, Domino’s Pizza, and Chipotle Mexican Grill, particularly in the third quarter. This presses on their sales in the country.
According to economists and business sector experts, COVID-19-related concerns have contributed to the insufficiency of workers, like struggles in child care and job-hopping due to increased compensation. Amazon warehouse is among the examples.
Some handful Starbucks locations in Buffalo, New York push to unionize – a challenge the coffeehouse company is facing. Workers want to create a union to settle concerns like prolonged lack of workers.
According to Starbucks, baristas who have served their coffee houses for at least a couple of years can take home an additional 5 percent in wage in late January. Those who have worked in the chain for at least five years, meanwhile, can get up to a 10 percent wage increase.
Apart from the coming wage increase, Starbucks also plans to have another hike in summer 2020, with the average wage hitting $17 per hour. Currently, the company compensated its staff for $14 an hour. The fresh compensation floor is $1 more, while the pay of workers in some markets can reach up to $23 per hour.
Starbucks increased wages for its staff in December when its CEO, Kevin Johnson, announced that they will increase the hourly wage to $15 over the next three years. The plan came earlier with Wednesday’s announcement.
The coffeehouse company said it will also provide $200 referral bonuses and place more recruiters across the markets nationwide on top of wage increase. Its move to innovate to make the work easier for baristas is underway.