Stay informed and ready to meet both everyday challenges and long-term planning and policy-making goals, with focused news, practical information, and strategic insights on all HR-related...
By Craig Giammona
April 7 — Starbucks Corp. will now pay full tuition for its workers to earn a degree from Arizona State University online, instead of just partially footing the bill, to attract employees amid a tightening labor market, the company announced April 6.
Employees who work at least 20 hours a week will be eligible to have full tuition, the company said in a statement. Starbucks founded the college program in 2014, with full-tuition reimbursement available only to juniors and seniors, while students in their first two years got a stipend of $6,500 to cover about half their fees.
Now, Starbucks is making full tuition available to more than 140,000 U.S. employees.
“Everyone deserves a chance at the American dream,” Chief Executive Officer Howard Schultz said in the statement. “The unfortunate reality is that too many Americans can no longer afford a college degree, particularly disadvantaged young people, and others are saddled with burdensome education debt.”
The announcement comes as competition intensifies for workers in the retail and fast-food industries. McDonald's Corp., the world's largest restaurant chain, said April 1 it would raise hourly wages for U.S. workers at its company-owned stores. That followed similar pay hikes at Wal-Mart Stores Inc. and Target Corp.
Almost 2,000 Starbucks employees have enrolled in the college program so far, the Seattle-based company said. Starbucks will invest at least $250 million to generate 25,000 college graduates by 2025.
To contact the reporter on this story: Craig Giammona in New York at email@example.com
To contact the editor responsible for this story: Nick Turner at firstname.lastname@example.org
©2015 Bloomberg L.P. All rights reserved. Used with permission
Notify me when updates are available (No standing order will be created).
Put me on standing order
Notify me when new releases are available (no standing order will be created)