Starbucks Raises Employee Pay and Offers New Bonuses Amid Labor Shortage

Starbucks Corp recently announced its plans to raise employee pay for workers in the United States who have worked for at least two years amid the ongoing labor shortage the country is facing. Starbucks employees who have worked for two years could get up to a 5% raise, while those who have worked for at least five years could end up getting up to a 10% raise. The coffee giant also revealed its plans to offer $200 referral bonuses to help hire new employees. 

These latest moves by Starbucks come amid the labor shortage that has gripped the nation. Many businesses have struggled to find new workers to fill vacant spots, leading to business activity being hampered for many. Restaurants and food chains in particular have been hit hard by this labor shortage, as the workers who are returning to the workforce are often getting jobs in higher-paying industries. For example, many workers have gotten jobs at warehouses, where they are paid more on average, than at restaurants such as Starbucks. 

Therefore, Starbucks has already made the first step to give their current employees raises. However, these raises likely won’t hit until late January, according to the company. Starbucks isn’t the only huge chain in the United States that is raising its wages to try to attract new workers. Many restaurants and businesses around the nation are struggling to fill empty positions. As a result, many businesses have raised their average hourly wage, as well as offered lucrative bonuses upon being hired. 

Previously in 2020, Starbucks announced plans to raise its employees’ wages by 10% to ensure that all its workers start at $15 an hour. They announced that this plan would come to fruition in the next few years. Now, this latest announcement falls in line with their near future goals. 

Starbucks and many other restaurants and fast-food chains have struggled greatly amid this labor shortage in the United States. For example, some fast-food chains have had to cut store hours and even shut down locations because of labor shortages. Not enough workers at locations have also kept many businesses from being able to run smoothly, limiting the overall business that can be done.   

Starbucks locations around the country will likely be quite busy for the next few months as the weather around the nation cools and more people flock to its stores for hot coffee and warm drinks. New or limited-edition menu items will also likely drive more customers to various Starbucks locations. Therefore, having enough workers to accurately get the job done is vital for the company. 

According to Starbucks, the average page for workers in the United States will range from $15 to $23 an hour by the summer of 2022. This leads to an average hourly wage of $17 an hour. With the company’s latest news about raises for current employees, Starbucks workers could reach this average by 2021 at the earliest. 

As a result of this pay increase, more workers may flock to Starbucks. However, hiring has been done for the past few months, so this pay increase may not convince many potential workers.