Employee Turnover Management: Starbucks

This document discusses the issue of employee turnover at Starbucks and explores the reasons behind it. It highlights the factors contributing to poor employee retention, such as excessive stress, low wages, lack of growth opportunities, and more. The document also provides recommendations for operational and strategic functions of HR to address the issue.

Running Head: EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
Name of the Student
Name of the University
Author note

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
Task 1
Starbucks is believed to serve the best coffee around the world. They maintain high
quality and practices ethical sourcing. In order to provide such high quality coffee, Starbucks
organizes proper training and development sessions of its employees. Although Starbucks has
expanded its business globally, its rate of employee retention is decreasing immensely.
The reasons why the employees of a company work with the organization for a longer
time are-
 Job satisfaction- When an employee is content with the kind of work he or she is doing in
an organization, the probability of retaining that employee increases.
 Company environment- The inertia of an employee weakens or strengthens depending on
the compatibility between the employee and the ethics and values of the company. The
better the company environment better is the retention rate.
 Job opportunity- The exposure an employee gets outside the organization increases the
chances of the employee to work with the organization for a longer time.
 Non-work factors- Family ties, financial responsibilities and community relation affect
the retention rate in an organization.
Starbucks is lacking in these aspects and thus, the employees are finding it difficult to continue
with the company for a longer time. 65% of the total employees in Starbucks believe that they
deserve benefits and a higher pay (Vasquez, 2014).

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
The type of employees working in the organization is core employees and peripheral
employees. The core group provides the functional flexibility whereas the peripheral group of the
organization deals with the numerical flexibility to address the fluctuations of the market during
contraction and expansion.
Task 2
High Stuff Turnover at Starbucks
Starbucks is one of the most popular coffee company of America and a worldwide
expanded coffeehouse chain. Starbucks was established in the year 1971 at Seattle. As per the
report published in the year 2019. Strabucks faces major employee turnover of more than 65% as
people working at Starbucks assumed employment as a temporary stopover.
Issues with Causes That Relate To Poor Employees Retention:
Excessive stress:
The employees at Starbucks had to go through excessive stress during the peak times.
This especially the case in the developing countries where Starbucks have its branches.
Minimum wage:
As compared to the hard work as well as the stress of the employees , their salary is much
lower. The employees often observe that if they switch their jobs or put the same labor as well as
skill in other sectors like IT or, commerce, they will be able to earn more. Hence low level of
salary and a high opportunity cost of being employed add to Starbuck’s poor employee retention
issues. Again the branches of Starbucks in developing countries like India and Bangladesh

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
suffers from lack of customers due to the lack of purchasing power of the customers, induced by
poor economic conditions. This results in the decline in the revenue of Starbucks and adds to the
minimum wage problems faced by the employees (Tews, et al. 2013).
Lack of sick leaves as well as medical benefits:
Due to the high level of employee turnover, the company often suffers from lack of
employees. This again gives birth to another issue-lack of medical benefits and sick leaves
provided by the company to its existing employees. This again curbs the rights of the employees
and adds to the poor employee retention problem faced by the company.
Lack of growth opportunities for the employees:
Often employees are keen to work in the more glamorous sectors like IT and commerce,
other than hospitality sectors, where they will get the chance to learn and grow. In other words
often employees at Starbucks find that there is a lack of chance to get promoted to a higher
position. This accelerates the poor employee retention problem.
Other Factors:
Other factors that contribute to the poor employee retention problem of Starbucks are-
lack of employee motivation, dominating and disgraceful attitude of the higher authority.
Type attitude and role of HR-50
Responsibilities not taken by the HR
The human resource management policies adopted by the HR were not at all employee
friendly. The employee management policies are not designed considering the socio-economic
condition of the countries, in which Strabucks has opened a branch. For example, observing the

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
specific needs as well as the socio-economic conditions of the countries in which Starbucks has
opened its branches, the HR of the respective braches should have allowed benefits ,
compensation, medical leaves and facilities (in case of poor health an nutrition of the workers
employed in the braches in developing countries). Again, areas in which there are less people are
found interested in working at Starbucks the HR should renovate the recruitment framework and
add attractive incentives for new joiners. But the HR of the respective branches have not applied
these policies, which led to major employee turnover (AlBattat, et al. 2014).
Recommendation: Operational and strategic functions of HR
According to the human resource management strategies suggested by Nankervis et al.
(2014), every HR should follow, four stages of Human Resource Management policies, so that
employees can be managed as well as retained and optimum labor employment situation is
reached.
 Stage one-welfare of the employees by providing compensations and benefits and
administration
 Stage two -staffing and training of employees by designing a performance management
plan
 Stage three – strategic steps and assessment of the employees, conducting employee
management operations like employee motivation programs.
 Stage four -SHRM into the future

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
Task 3:
In Starbucks the human resource department deals with consulting with the employers for
identifying the preferred qualification for a certain position in the company. They interview the
applications and know about their education, skills and experiences. The background checks are
also executed by them. Apart from recruiting they coordinate and plan the workforce in order to
utilize the talents of the employees. They have the responsibility of resolving conflicts between
the management and the employees. They make the policies of the companies like sexual
harassment and employee opportunity. They also provide the disciplinary steps to all the
employees. This department also measures the performance of the employees (Morais, et al.
2014).
The performance planning steps include-
1. Reviewing the proper material- Having a wide knowledge about the management
resource guide, job role of all the staffs, expected results of the job and the review for is
essential for the organization.
2. Performance planning- Reviewing the strategies and balanced scorecards, informing the
employees about the performance planning program and scheduling it is another aspect of
the planning.
3. Conducting the performance planning in order to reach the goal by using various
strategies helps the organization in all aspects.
The organization can choose the 360-degree feedback review method. This method will help the
company to get a comprehensive idea of the performance of its employees from various outside
sources. This method will provide feedbacks from direct reports, non-direct supervisors and

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
peers of the employees in the organization. The leadership skills and employee’s character can
also be measured through this method. Thus, if Starbucks use this method, the company will
have scope of improvement and in turn can retain its employees.
Organizational Chart

EMPLOYEE TURNOVER MANAGEMENT: STARBUCKS
References:
Vasquez, D. (2014). Employee retention for economic stabilization: A qualitative
phenomenological study in the hospitality sector. International Journal of Management,
Economics and Social Sciences, 3(1), 1-17.
AlBattat, A. R., Som, A. P. M., & Helalat, A. S. (2014). Higher dissatisfaction higher turnover in
the hospitality industry. International Journal of Academic Research in Business and Social
Sciences, 4(2), 45.
Tews, M. J., Michel, J. W., & Ellingson, J. E. (2013). The impact of coworker support on
employee turnover in the hospitality industry. Group & Organization Management, 38(5), 630-
653.
Morais, U. P., Pena, J., Shacket, K., Sintilus, L., Ruiz, R., Rivera, Y., & Mujtaba, B. G. (2014).
Managing diverse employees at Starbucks: Focusing on ethics and inclusion. International
Journal of Learning and Development, 4(3), 35.