Essay: Staffing strategies at Starbucks

1. Starbucks
a. Everyone knows Starbucks serves coffee. However, if you ask top executives, they will tell you that “[Starbucks] is not in the coffee business serving people; [Starbucks] is in the people business serving coffee.” This attitude lies at the heart of the organization’s attitude and culture. Starbucks has built its strategy around these words, making the experience of getting coffee the focus of their business. Starbucks has created a “third place”- a place for social activity between the workplace and the home. Warm, inviting stores with customers greeted by friendly and helpful faces serving quality hand-crafted beverages is tantamount to this strategy.
b. Key to the implementation and success of Starbucks strategy is the position of Shift Supervisor. Shift Supervisors are responsible for creating and maintaining operational excellence in the store. They ensure that standards and routines are followed and provide coaching in the moment when needed, identifying training opportunities for employees. When issues arise Shift Supervisors are tasked with finding a solution so as to not negatively impact the customer experience and the “third place.” From inventory management to delegating tasks and assignments, the Shift Supervisor acts as a conductor, making sure that the store is running smoothly at all times. As such, the Shift Supervisor position lies at the core of Starbucks strategy to deliver an exceptional experience to customers.
High performers are able to adjust quickly to issues and to ensure that each store role is staffed appropriately. They work behind the scenes, allowing baristas to focus on delivering the core product and connecting with customers. They inspire others and bring out the best in each staff member.
On the other end of the spectrum, a low performer quickly becomes overwhelmed with issues that inevitably arise. Inability to appropriately handle customer complaints and concerns shatters the ideal “third place” atmosphere and ultimately damages the entire brand. Improperly handled operational issues create a stressful environment for the staff, impacting their ability to connect with customers and deliver high-quality customer service.
The role of Shift Supervisor is both to inspire and aspire to live up to the promise of Starbucks; “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” For these reasons, close attention should be paid on the staffing of this key position.
c. Elements of the Staffing Strategy
i. Do we want a core or flexible workforce?
1. As this position is key to the organization’s success, a core workforce is needed. Knowledge – institutional, procedural, and interpersonal – is an important aspect in the successful operation of the Shift Supervisor position. A flexible workforce is inadequate and is unlikely to fulfill the obligations of this position.
ii. Do we prefer to hire internally or externally?
1. As high-quality customer service is a key factor in the organization’s strategy, a preference for internal hires is required. The ability to build and maintain strong relationships with customers is an important driver of success, both in this position and within the organization as a whole. Internal hires, with their advanced knowledge of the processes, procedures, and customers are most likely to be able to provide the level of customer service that sustains the organization’s competitive advantage. However, qualified applicants with advanced leadership experience and interpersonal skills should be considered.
iii. Do we want to hire for or train and develop needed skills?
1. As discussed, successful performance of this position requires the application of advanced interpersonal and leadership skills. Emphasis should be placed on hiring applicants who meet these interpersonal requirements while training for the day-to-day procedural skills.
iv. Do we want to replace or retain our talent?
1. Retention of talent in this position is important to the overall organization and the implementation of its strategy. Knowledge of the institution’s standards, procedures, and customers are built upon overtime and are necessary to connect customers with the “Starbucks experience.”
v. What levels of which skills do we need where?
1. High levels of interpersonal skills are required in this position. Personality and organizational fit are important aspects of this. Leadership, organization, and problem solving skills are also needed at high levels. Together, these represent the skills necessary for the successful operation of the tasks required in the position.
vi. Will we staff proactively or reactively?
1. Staffing should be done proactively and in alignment with the organization’s strategy. Talent with leadership and interpersonal skills should be identified and hired in order to position the organization to fill positions before the need arises. This is necessary to provide customers with a seamless experience and keep the organization running smoothly.
vii. Which jobs should we focus on?
1. The Shift Supervisor position is a key job in the organization as it is responsible for the day-to-day operation of the business. Because this role is central to all activity within the business, it is a key talent pool to draw from in terms of upper-level management.
viii. Is staffing treated as an investment or a cost?
1. Staffing for the organization should be treated as an investment. To reiterate points already discussed, the high-quality customer service is an important part of the business strategy of the organization. As such, investing in talent and increasing their ability to lead, motivate, and problem solve is necessary and talent should be viewed as an asset for the company.
ix. Will staffing be centralized or decentralized?
1. Staffing should be decentralized and ultimately up to the store manager. Because teamwork is such an important aspect of work within the organization, it is important that each staff member mesh well together. This is most easily achieved through a decentralized approach to staffing where the store manager can gauge the personality and organizational fit of the applicant.
d. The organization currently staffs this position mostly through internal hires. Promising candidates are identified by management and trained to fill future openings. The company does recruit outside of the organization. They have a referral incentive for the position, awarding 300 dollars to employees who refer potential candidate who are hired, are successful, and spend at least 6 months with the company.
2. Job Analysis
a. Functional Job Analysis
i. Purpose of the Job: The purpose of the shift supervisor position is to ensure all employees on the current shift are performing well and to make sure all customers are happy with the services and products they are receiving.
ii. Job Duties:
1. Major Functional Areas
a. Financial Management
b. Employee Supervision
c. Inventory
d. Customer Service/Conflict Resolution
iii. Task Breakdown*
1. Financial Management
a. Count tills during store opening to ensure all tills equal the specified amount
i. Less than 5% of time
ii. BO
iii. Critical
b. Count tills during store closing to ensure all computerized totals match the ending cash in each till
i. Less than 5% of time
ii. BO
iii. Critical
c. Ensure tills have adequate amounts of change throughout shift so change can be given to customers by communicating with employees with open tills and taking money from the safe in the event it is needed
i. Less than 5% of time
ii. BO
iii. Critical
d. Keep track of any tip money to ensure it is not placed in with regular money by using a tip jar
i. Less than 5% of time
ii. E
iii. Important
2. Employee Supervision
a. During store opening assign employees to the positions they will hold and the tasks they will complete during their shift
i. Less than 5% of time
ii. BO
iii. Important
b. Assist employees with issues that arise throughout shift
i. 31-40% of time
ii. OJT
iii. Critical
c. Step in as a helping hand if an employee gets overwhelmed during a busy shift
i. 31-40% of time
ii. OJT
iii. Critical
d. Ensure all employees are performing tasks effectively and efficiently while keeping high levels of customer service
i. 31-40% of time
ii. OJT
iii. Critical
e. Manage break times to ensure all employees receive a break and do not exceed the allotted time
i. 31-40% of time
ii. BO
iii. Critical
f. Call in a replacement if someone fails to show up for a shift
i. Less than 5% of time
ii. E
iii. Important
g. Identify any training needs or concerns when watching over employees
i. 11-20% of time
ii. OJT
iii. Critical
3. Inventory
a. Conduct quarterly inventory checks
i. 6-10% of time
ii. OJT
iii. Critical
b. Stock shelves in the event something runs out during shift
i. 6-10% of time
ii. E
iii. Important
c. Check inventory kept in the back of the store if something runs out in the cafe area
i. Less than 5%
ii. E
iii. Important
d. Fill syrup bottles and other drink supplies before shifts start
i. Less than 5% of time
ii. E
iii. Not important
e. Place foods in the display case at beginning of shift, replacing as needed
i. 6-10% of time
ii. E
iii. Important
f. Monitor all items and replace from the back as needed
i. Less than 5% of time
ii. E
iii. Not important
4. Customer Service/Conflict Resolution
a. Talk to disgruntled customers after employee asks for their help
i. 21-30% of time
ii. BO
iii. Critical
b. Offer discounts, refunds, or free products in the event of an upset customer
i. 11-20% of time
ii. BO
iii. Critical
c. Greet customers when they enter
i. 31-40% of time
ii. E
iii. Not important
d. Ask customers how their service was
i. 11-20% of time
ii. E
iii. Important
e. Answer phone calls and address concerns
i. 11-20% of time
ii. OJT
iii. Critical
f. Direct drive-thru traffic in the event of a buildup or jam
i. Less than 5% of time
ii. E
iii. Critical
*Key:
E = upon entry, with no additional training needed
BO = after a bried orientation to the task
OJT = after a specific period of on the job training
NI = Not Important
I = Important
C = Critical
b. Task Inventory Job Analysis
i. Customer Service (15%)
1. Pleasantly greet customers as they enter the store
2. Answer phones to assist customers virtually regarding problems, directions, etc.
3. “Connect with customers” in a genuine way throughout register transactions
4. Remedy customer problems and complaints as they occur or upon returning to the store
5. Asking for feedback on customer’s service, beverages, food, and atmosphere
6. Direct traffic in the event of gridlock to hasten the wait time of drive-thru customers as needed
7. Perform refunds for incorrect products or order amounts
ii. Employee Supervision (40%)
1. Assign employees their positions throughout the day (Drive-thru, bar, stock runner)
2. Schedule and manage breaks and lunches for employees throughout their shift
3. Supervise drive-thru employees and baristas to ensure drive-thru wait times limits are not exceeded.
4. Supervise baristas to make sure beverages are being made correctly and quickly
5. Oversee daily tasks such as cleaning and stocking to maintain company standards
6. Monitor daily attendance, adjust shifts as necessary, and fill shifts if an employee is absent from their shift
7. Relay information about employees’ performance to manager
8. Act as an intermediary between upper management and subordinate personnel
9. Monitor employees to prevent unsafe work practices that can cause injury
iii. Operations (15%)
1. Reconcile tills at opening to verify correct base amounts
2. Account for the money is the store safe to assure proper cash in on hand and available if the till is depleted of cash.
3. Pull frozen and refrigerated food and place in display case for the day
4. Count inventory throughout the day to avoid out of stocks or excess inventory
5. Order products, supplies, and materials as needed to efficiently operate
6. Operate registers and interact with customers during peak times
7. Make drinks for customers as they order during peak times
8. Replenish store beverage supply by making more when approaching depletion
9. Wash dishes and supplies during peak times when others are unavailable
10. Balance receipts and cash at the end of each day
11. Act as liaison with managers upon store walks or audits
12. Recommend improved processes and procedures for existing operational activities to improve efficiency
13. Record applicable personnel, production, and operational data when necessary
14. Evaluate new beverages to determine plausibility of implementation to the menu
15. Establish standards to help prevent waste or theft
16. Handle money from the customers and the till.
iv. Training and Coaching (20%)
1. Motivate and direct subordinates
2. Train new subordinates or equals to perform his or her job
3. Instruct employees when they perform a task incorrectly or inefficiently
4. Praise employees when performing tasks correctly.
5. Socialize employees to understand the business culture
6. Inform employees of processes, guidelines, and regulations
7. Specify food and drink portions to new hires
8. Lay out time expectations for various processes
9. Conduct meetings regarding new information or retraining employees on current information
10. Develop/monitor the company’s strategic goals and objectives
11. Suggest new methods of training and developing employees to manager
v. Maintenance (10%)
1. Stock and replenish supplies on the sales floor as needed if other employees are busy
2. Sweep and mop store to maintain company standards if other employees are unavailable
3. Clean beverage machines and counter surfaces daily if other employees are not available
4. Inspect products, machinery, and overall store to check for inadequacies
5. Create maintenance schedules for machines
6. Maintain on schedule with paperwork requiring employee signatures
7. Direct employees to check restrooms for supplies needed throughout the day
3. Summary of job from O*NET
a. The ONET report used for the title of Starbucks Shift Supervisor is #35-1012.00 – First-Line Supervisors of Food Preparation and Serving Workers. The report states that the most important task performed is the training of workers but based on our job analyses we did not find that to be true. The employee supervision tasks were what we concluded to have the most importance as well as take up the most amount of time. This makes sense considering Starbucks employees have to have additional trainings to become certified trainers and it is not a training that every supervisor automatically gets. One of the tools used is the “bar code reader equipment” which according to our job analyses is used to keep track of inventory. The ONET report says the most important knowledge for this position is administration and management which we agree with based on our findings. Shift supervisors need to have a thorough knowledge of how the business runs as well as how to effectively manage the employees working that shift. The most important skills for this position are speaking, active listening, coordination, and service orientation which matches up with our findings. All four of these skills are used to deal with customers as well as employees so a shift supervisor needs to have advanced experience with these skills. The most important ability is oral expression which is extremely important since this is a customer service job, but also because this role is a helping role to all other employees. Overall the ONET report reinforced the information concluded from the functional job analysis and the task inventory job analysis.
4. Starbucks Shift Supervisor Job Description
a. Job Summary and Objectives
i. The position of shift supervisor is essential to the success of Starbucks through the coordination and supervision of daily activities delegated to partners. A shift supervisor will relay communications between the store manager and all other partners to accomplish Starbucks strategic objectives. This position is also responsible for ensuring customers have a positive experience every visit.
b. Key Responsibilities
i. Exemplify Starbucks culture by conducting one’s self with genuine honesty, accountability, and leadership traits leading to a continued commitment to Starbucks’ goals from all partners.
ii. Assist the store manager with new hire orientation and on the job training resulting in partners who are knowledgeable about Starbucks’ standards, procedures, and culture.
iii. Exceed customer expectations by analyzing customer needs, preferences, and feedback to sustain a positive third place environment essential to customer satisfaction.
iv. Preserve operational excellence through maintenance activities, operational plans, and sustaining a productive team environment.
v. Serve customers high quality beverages, food, and atmosphere that are focused around satisfying the customer’s needs while complying with all health standards
vi. Perpetuate a safe and clean workplace by supervising daily sanitation activities, machine maintenance, and communicating any safety problems encountered with the store manager.
vii. Sustain proper financial accounting by reconciling tills, reinforcing accurate cash management by partners, and following all cash policies and procedures.
viii. Actively listen and analyze customer problems as they arise in a calm and pleasant manner in order to remedy these issues in an effective and productive way.
ix. Delegate daily tasks to partners throughout their shift, administers breaks and lunches, and communicates these plans with other shift leaders at shift changeover.
x. Supervises partner attendance and punctuality as well as personally sustain good attendance and punctuality.
c. Job Specifications
i. Ability to effectively communicate information between management and supervisees
ii. Ability to work as a team member
iii. Knowledge of retail operations
iv. Ability to create relationships
v. Skilled at planning and delegating tasks
vi. Time management skills
vii. Ability to accurately manage cash transactions
viii. Strong interpersonal and active listening skills
ix. Ability to lead a team
d. Experience
i. High school diploma or GED equivalent
ii. Preferred 1+ year customer service experience in restaurant or retail environment
5. Job Requirements Matrix for a Shift Supervisor
a. Characteristics of the job
Job Duty
Tasks
Relative Importance of Job Duty (%)
Relative Time Spent (%)
Customer Service
1. Provide exceptional customer service to all guests with an inviting and friendly manner.
2. Resolve customer problems effectively to maintain customer satisfaction
15%
10%
Employee Supervision
1. Delegate and monitor daily activities among partners to facilitate exceptional performance.
2. Act as the leader of the team to motivate partners to provide their best work.
3. Ensure tasks are completed safely and accurately, offering feedback as needed.
40%
50%
Operations
1. Maintain adequate inventory levels and monitor suppliers on hand.
2. Provide legendary service to all customers throughout all transactions.
15%
15%
Training and Coaching
1. Assist with on the job training to new partners.
2. Offer feedback of performance for all partners, encouragement upon good performance and constructive tips for inadequate performance.
20%
20%
Maintenance
1. Ensure Starbucks is complying with all safety and health specifications.
2. Run routine maintenance on machines and report any faults to store manager.
10%
5%
b. Characteristics of the workers
Job Duty
Competency or KSAO
Importance of KSAO or Competency to Task Performance*
Customer Service
1. Ability to create relationships
2. Strong interpersonal and active listening skills
1. 9 E
2. 8
Employee Supervision
1. Ability to create relationships
2. Ability to lead a team
3. Strong time management skills
1. 8
2. 9.5 E
3. 8
Operations
1. Ability to effectively communicate information between management and supervisees
2. Skilled at planning and delegating tasks
3. Knowledge of retail operations
4. Ability to accurately manage cash transactions
1. 6
2. 10 E
3. 5
4. 10 E
Training and Coaching
1. Ability to work as a team member
2. Strong interpersonal and active listening skills
1. 8
2. 9 E
Maintenance
1. Strong time management skills
1.  5
*Key: 1 = low, 10 = high, E = essential
6. Jobs Rewards Matrix for Front Line Supervisor at Starbucks
Reward
Amount
Differential
Stability
To Whom the Reward Might Appeal
Competitive Base Salary
$30,340
$19,990 – $51,370
Mostly stable, changes slightly to market conditions
Most workers
Benefits
Medical, dental, vision, 1 week vacation, 401k, stock options, free beverage
Mangers receive larger percentages of benefits than others including 3.4 week vacation and larger profit sharing percentages
Mostly stable with profit sharing and stock option payouts varying with market conditions
Most workers
Performance Based Pay
0%, Fixed hourly wages
None
Cannot change based on company performance
Employees who enjoy steady income based solely on hours worked
Promotion Opportunities
Average worker is promoted within 2 years
Starbucks is known for fast promotion potential. Workers can be promoted after a year or after 3 years, or sometimes never.
Depends upon prior experience, performance, and company needs
Employees who are high performers and retain knowledge quickly
Having individual responsibility for tasks
Average
Some activities are directed by management to be performed systematically while other tasks elicit individual responsibility
Stable
Employees who like to balance some space for individual decision making and also performing procedural tasks
Doing different tasks every day
Below average
Most tasks are routine and cyclical with some variation due to customer needs
Stable
Employees who prefer stable work environments with less space for individual decision making
7. Based on O*NET research findings:
a. The national median wage for a shift supervisor is $14.59 an hour or $30,340 annually. North Carolina specifically is at $14.68 an hour or $30,530 annually which is a little bit higher than the national median wage showing this state could be a great place to do this job.
b. As of 2014, 890.000 people hold this position with a projected growth of between 9 and 13 percent which is faster than the average growth rate for jobs. This shows that this is a great position to get into that will always have a need resulting in job security.
c. Most workers in this occupation have a higher school diploma or equivalent as well as relevant food work experience to qualify them for a management or supervisory level job.
8. Labor Market and Future Labor Supply
a. The current labor market consists of individuals with at least a high school diploma who have less than 5 years of experience in the industry. According to the U.S. Bureau of Labor Statistics (BLS) demand for first-line supervisors in the food service industry is set to increase over the next 8 years. According to the BLS, there are approximately 890,000 people currently employed in these positions. This number is set to increase by 10 percent or 88,500 workers by 2024. Increased competition for workers in this labor market will decrease available supply for qualified workers in this position.
References:
Trefis Team. (2016, September 19). Let’s Look At Starbucks’ Growth Strategy. Retrieved March 20, 2017, from https://www.forbes.com/sites/greatspeculations/2016/09/19/lets-look-at-starbucks-growth-strategy/#3a8089673d71
Starbucks. (n.d.). Starbucks Corporation – Financial Information – Annual Reports. Retrieved March 20, 2017, from http://investor.starbucks.com/financial-information/annual-reports/default.aspx
O*Net. (2017). 35-1012.00 – First-Line Supervisors of Food Preparation and Serving Workers. Retrieved March 20, 2017, from https://www.onetonline.org/link/summary/35-1012.00
Mission Statement. (n.d.). Retrieved March 20, 2017, from https://www.starbucks.com/about-us/company-information/mission-statement
PayScale. (2017). PayScale – Salary Comparison, Salary Survey, Search Wages. Retrieved March 20, 2017, from https://www.payscale.com/
Starbucks. (2017). Shift Supervisor (US). Retrieved March 20, 2017, from https://wfa.kronostm.com/index.jsp?locale=en_US&applicationName=StarbucksNonReqExt&SEQ=positionDetails&POSTING_ID=667441203&>%3B.