Starbucks will provide a free online college education to thousands of its workers, without requiring that they remain with the company, through an unusual arrangement with Arizona State University, the company and the university will announce on Monday.
The program is open to any of the company’s 135,000 United States employees, provided they work at least 20 hours a week and have the grades and test scores to gain admission to Arizona State. For a barista with at least two years of college credit, the company will pay full tuition; for those with fewer credits it will pay part of the cost, but even for many of them, courses will be free, with government and university aid.
Many employers offer tuition reimbursement. But those programs usually come with limitations like the full cost not being paid, new employees being excluded, requiring that workers stay for years afterward, or limiting reimbursement to work-related courses.
Starbucks is, in effect, inviting its workers, from the day they join the company, to study whatever they like, and then leave whenever they like — knowing that many of them, degrees in hand, will leave for better-paying jobs.
Even if they did, their experience “would be accreted to our brand, our reputation and our business,” Howard D. Schultz, the company’s chairman and chief executive, said in an interview. “I believe it will lower attrition, it’ll increase performance, it’ll attract and retain better people.”
In a low-wage service industry, Starbucks has for decades been unusual, doing things such as providing health insurance, even for part-timers, and giving its employees stock options. (Like other food and drink chains, it has also been accused of using improper tactics in fighting unionization drives.) Whether in spite of those perks or because of them, the company has been highly successful; its stock, which closed Friday at $74.69, has grown in value more than a hundredfold since it went public in 1992.
The company says that in its employee surveys some of the most compelling results are about higher education. Seventy percent of Starbucks employees do not have a degree but want to earn one; some have never gone to college, some have gone but dropped out, and others are in school, but have found it slow going.
http://www.nytimes.c...of-workers.html
