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Hrm Starbuck
Starbucks Recruiting, Compensation, and Benefits Analysis
December 7, 2011

By: Andrew Rucker, Kayla Villayvanh,
1

Megan Lanagin, Savitrii (Kiki) Rizki, and Zea Collentine

Management 311: Managing Human Resources Professor Vandra Lee Huber Foster School of Business, University of Washington Introduction Our paper examines Starbucks’ human resource management practices related to recruiting, hiring and compensation, benefits. Our study focuses on the recruiting practices for Starbucks’s core competency teams in the United States: the coffee divisions – those working directly to create and re-create profitable brewed beverages. These are the product people in headquarters, and the baristas and store managers in the customer frontline. We have excluded, however, employees at roasting plants, and any suppliers. In order to understand the relationship between human resource practices and company goals we have first looked at the shifts in CEO leadership as well as a SWOT analysis of Starbucks as a whole. We then take a closer look at compensation and benefits, recruitment and hiring, and lastly a SWOT analysis of human resources practices.
History Orin Smith succeeded Schultz as CEO in June 2000. In the ten years prior to his position as Starbucks CEO, Mr. Smith held a number of executive positions at Starbucks. As discussed in Chapter 5 of Human Resource Management, there are several advantages to relying on internal sources. Not only does the firm know the applicant, but the applicant knows the firm. Before he was CEO, Mr. Smith held positions as executive vice president, chief financial officer, and chief operating officer. Under Smith’s leadership as CEO, growth and earnings remained strong. When Mr. Smith retired in 2005, Jim Donald was hired as the CEO. Mr. Donald became one of the first Starbucks executives to be hired from the outside. This marked a transition for Starbucks from internally developed executives to external involvement (Gray). In many


Bibliography: Starbucks Coffee Company. (2002). Corporate Social Responsibility Annual Report. Retrieved November 19, 2011, from http://www.starbucks.com/assets/csr-fy01-ar.pdf Weber, G. (2005, February 1). Workforce. Preserving the Starbucks Counter Culture. Retrieved November 19, 2011, from http://www.workforce.com/article/20050201/NEWS02/302019989 (2010, March 23). The SironaSays Blog. Social Recruiting the Starbucks Way. Using Social Media to Attract & Engage Passive Candidates. Retrieved November 19, 2011, from http://blog.sironaconsulting.com/sironasays/2010/03/social-recruiting-the-starbucks-way-.html “Starbucks Details Strategy for Profitable Growth.” Starbucks Newsroom. Starbucks. 18 Mar. 2009. . “Starbucks Outlines Strategy for Accelerating Profitable Global Growth.” Starbucks Newsroom. Starbucks. 24 Mar. 2010. . “Starbucks Records Record Fourth Quarter and Record Fiscal 2011 Results.” Investor Relations, Financial Release. Starbucks. 03 Nov. 2011. . “Starbucks Coffee Company.” Corporate Social Responsibility Annual Report. 2002. 19 Nov. 2011 “The SironaSays Blog.” Social Recruiting the Starbucks Way. 23 Mar. 2010. 19 Nov. 2011 Weber, Gretchen. “Workforce.” Preserving the Starbucks Counter Culture. 1 Feb. 2005. 19 Nov. 2011 17 "Starbucks Salaries." Glassdoor.com. Glassdoor, 22 Nov 2011. Web. 16 Nov 2011. . "Facts About Starbucks and Our Partners." Starbucks Newsroom. Starbucks Corporation, 21 May 2009. Web. 15 Nov 2011. . "Your Special Blend." U.S. Total Pay. Starbucks Corporations, 06 Dec 2010. Web. 15 Nov 2011. . Gray, Steven. "Starbucks 's CEO Announces Plan to Retire in March." Wall Street Journal: A.6. ProQuest Newsstand. Oct 13 2004. Web. 20 Nov. 2011 . Adamy, Janet. "Starbucks Shares Rise as CEO Returns; Analysts Trim Forecasts for Profit, Sales Growth; Will Hectic Pace Slow?"Wall Street Journal: A.12. ProQuest Newsstand. Jan 09 2008. Web. 20 Nov. 2011 . "Howard 's Way." Economist 400.8754 (2011): 78. Academic Search Complete. Web. 20 Nov. 2011. "DATAMONITOR: Starbucks Corporation." Starbucks Corporation SWOT Analysis (2011): 1-12. Business Source Complete. Web. 20 Nov. 2011. "Starbucks Baristas Go Union In Texas." Management Report For Nonunion Organizations (Wiley) 33.5 (2010): 2-8. Business Source Complete. Web. 20 Nov. 2011. "Professional Services Careers." Starbucks Coffee Company. Web. 28 Nov. 2011. . Taleo TOC Page. Web. 28 Nov. 2011. . "Starbucks." Scribd. Web. 28 Nov. 2011. . "Social Recruiting the Starbucks Way." Sirona Says. Web. 28 Nov. 2011. . "Career Diversity." Starbucks Coffee Company. Web. 28 Nov. 2011. . Taleo TOC Page. Web. 28 Nov. 2011. . 18 Taylor, WILLIAM C. "To Hire Sharp Employees, Recruit in Sharp Ways." The New York Times [New York] 2006. Print. "Starbucks Case Study." Google. Web. 28 Nov. 2011. . Solomon, Mark B. "Starbucks: The next Generation – DC Velocity." DC Velocity – Logistics News, Analysis & Multimedia. Web. 28 Nov. 2011. . Taylor, WILLIAM C. "To Hire Sharp Employees, Recruit in Sharp Ways." The New York Times [New York] 2006. Print. 1987, December. "Starbucks Case Study." Web. 28 Nov. 2011. . 19
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