Starbucks Corp (NASDAQ:SBUX) is reportedly poised to enhance its compensation package for US retail hourly workers from January 1, with an initial pay rise of at least 3%, benefiting those with longer tenure the most.
The current hourly pay at the company averages around $17.50, with a spectrum of $15 to $24. Starting in February, employees will also accrue paid vacation time post 90 days of service.
Reports said plans are underway to broaden the Starbucks College Achievement Plan, aiming to include more credential and certification opportunities. Presently, the program aids 23,000 partners in obtaining their bachelor’s degrees.
Starbucks has also seen over $2 billion in extra earnings distributed to its workforce through the Bean Stock grants, underscoring the company's comprehensive employee benefits strategy.
Ahead of the bell, the stock was up 0.6% at $103.25, suggesting the market will take the pay rise news in its stride.