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Starbucks degree
Posted: Mon Jun 16, 2014 9:17 pm
by Gob
US coffee chain firm Starbucks will pay college fees for US workers to complete a bachelor's degree online in a tie-up with Arizona State University.
US employees of the firm who work at least 20 hours a week are eligible for the Starbucks College Achievement Plan.
Starbucks staff who are successfully enrolled will receive partial tuition for the first two years, and full tuition for their final two years.
The annual fee for online courses at the university can exceed $10,000.
After they've completed their bachelor's degree, the employees are not obligated to return to employment with Starbucks.
Starbucks staff looking to attend college online at Arizona State University (ASU) can choose from about 40 programmes including business, engineering, education and retail management.
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In a statement posted on its website, the university said the initiative was designed to 'support the nearly 50% of college students in the United States today who fail to complete their degrees due to mounting debt, a tenuous work-life balance and a lack of support.'
In that same statement, Howard Schultz, chairman and president at Starbucks said: "There's no doubt, the inequality within the country has created a situation where many Americans are being left behind. The question for all of us is, should we accept that, or should we try and do something about it.
Supporting our partners' ambitions is the very best investment Starbucks can make. Everyone who works as hard as our partners do should have the opportunity to complete college, while balancing work, school and their personal lives."
In addition to the financial aid, students who are admitted under the college plan will also have a dedicated enrolment coach, financial aid counsellor and academic advisor to support them through graduation.
Michael M. Crow, President at the Arizona State University said that Starbucks was "establishing a new precedent for the responsibility and role of a public company that leads through the lens of humanity and supports its partners' life goals with access to education."
The collaboration comes one week after a White House report showed student debt loan balance in the US had jumped to $1.1tn early this year, when compared to $250bn in 2003.
Last week US President Barack Obama signed an executive order allowing millions of student-loan borrowers to cap their payments at 10% of their monthly income.
Re: Starbucks degree
Posted: Mon Jun 16, 2014 9:42 pm
by Scooter
It's a heck of a lot more than most low wage employers are doing. Particularly since, in this case, they have to know that most of those employees will be hanging up their aprons as soon as their degree finds them a better prospect.
Re: Starbucks degree
Posted: Mon Jun 16, 2014 11:52 pm
by Long Run
Of course, most of their employees are not career baristas at this point, so maybe this combines something that is good for business (attracting employees who have aspirations) -- plus getting two to three good years from them -- with good social policy (helping to make college more affordable for more people).
Re: Starbucks degree
Posted: Tue Jun 17, 2014 1:05 pm
by Big RR
I agree LR; and they might also want to have some people in management who have experience at the retail level of their business. Paying for the college (or at least some of it) is a good recruiting tool, and anyone who can finfish a bachelors degree at night is probably a pretty good bet to be a good worker.
Re: Starbucks degree
Posted: Tue Jun 17, 2014 6:27 pm
by Crackpot
Big RR wrote:I agree LR; and they might also want to have some people in management who have experience at the retail level of their business. Paying for the college (or at least some of it) is a good recruiting tool, and anyone who can finfish a bachelors degree at night is probably a pretty good bet to be a good worker.
Why? They have ready access to lots and lots of caffeine.
Re: Starbucks degree
Posted: Tue Jun 17, 2014 6:55 pm
by Big RR
True, that's always a plus.
Re: Starbucks degree
Posted: Tue Jun 17, 2014 7:22 pm
by dgs49
Seems like a great recruiting tool. I have the impression (I personally would never shop there) that a lot of their baristas have degrees already, but not in areas that generate much interest in employers. I wonder if this would cover a second degree.
Back in the Old Days, I got some fairly significant tuition assistance (law school) from a couple of employers - one after they had laid me off.
Re: Starbucks degree
Posted: Wed Jun 18, 2014 1:08 pm
by rubato
A good method of hiring the top people in that employment category. A very cheap way of getting the more intelligent and ambitious people who will try to get a degree and retaining them for several years. Ca $5,000/yr for the first two years and Ca $10,000 for the final two. A few of that group will stay with the company but more will move on leaving good will in their wake.
A refreshing change from the 'screw the employees until they apply for public assistance' policies of Wal-Mart and McDs.
yrs,
rubato
Re: Starbucks degree
Posted: Fri Jun 20, 2014 6:30 pm
by Long Run
Shine the sun, devil is in the details.
Following the announcement, however, Arizona State University president Michael Crow told The Chronicle of Higher Education that Starbucks is not contributing any money toward the scholarship. Instead, Arizona State will essentially charge workers less than the sticker price for online tuition. Much of the remainder would likely be covered by federal aid since most Starbucks workers don't earn a lot of money.
Workers would pay whatever costs remained out of pocket for the first two years, and Starbucks would bear no costs.
http://www.komonews.com/news/local/Star ... 37031.html
As far as the workers go, it is still the same good deal. However, it is ASU making a bet that this new revenue exceeds costs. Starbucks cut a nice deal for its workers, but apparently isn't putting any money into the deal. You'll still want to place your tip in that college tuition jar.