Motivation is crucial for organizational effectiveness. It can be described as an internally sparked drive to achieve an objective or follow a given course of action. Motivated employees concentrate their efforts on delivering goals that are aligned with the operational and strategic directions of their organization. QualityEssay has the urge to stay for a long time with their organization. They have the urge to stay for long with their organization. Starbucks is one of the blue-chip companies hailed for having effective employee motivation strategies, exemplified by higher employee satisfaction levels and lower turnover rates than competitors. The retail coffee giant’s motivation strategies are built on both extrinsic and intrinsic aspects and are consistent with Herzberg’s two-factor theory.
Fredrick Herzberg’s two-factor theory accentuates factors in the environment that play an important role in shaping the behavior of employees. The theory was conceptualized following research carried out on 200 accountants and engineers working in multiple companies in Pittsburgh, Pennsylvania (A. It posits that human motivation is composed of hygiene factors and motivators. Hygiene factors are sources of employee dissatisfaction and are related to the context or setting of the job. In other words, they are associated with the environment in which employees work as opposed to the work itself. They include wage/salary, quality of supervision, quality of working conditions, company’s policies and administration, relationships between employees, supervisors and colleagues, and job security. Notably, hygiene factors do not create job satisfaction per se. Nevertheless, job dissatisfaction results when hygiene factors are poor or lacking. Thus, an effective motivation scheme must be designed to improve hygiene factors.
In terms of hygiene factors, Starbucks’s motivation strategies are characterized by attempts to offer competitive wages to employees across the globe. As Premack notes, the company has the highest average wages in the fast-service restaurant segment. Besides, since 1988, Starbucks has provided health insurance coverage to all its full-time and part-time employees. More recently, the company increased its pool of fringe benefits for employees in different countries based on their unique needs. In early 2018, the company commenced a welfare policy to give its Chinese employees housing allowances that will cover about 50% of their rental costs. In the UK, the company offers its employees interest-free loans to help pay the high up-front apartment rental expenses. In the U.S., the company has been financing employees to attend college since 2014. Generous wages and benefits are not related to job content. Consequently, according to the two-factor theory, they do not motivate employees but they prevent dissatisfaction. While their presence seems routine, their removal or reduction would elicit strong negative reactions from the employees.
At the core of hygiene factors are the friendly relationships that employees enjoy with their colleagues and their managers, courtesy of a long-standing organizational culture that espouses equal treatment of all organizational members. Employees, including supervisors, are referred to as “partners.” This term connotes respect and equality of employees at all organizational levels. Further, collaborative relationships between employees and management create a closely-knit work environment. Employees are able to enjoy their jobs and extend their enthusiasm to interactions with customers.
Motivators are related to the nature/content of the job, that is, what employees do in their work. They are intrinsic, rather than extrinsic to the job. They include opportunities for personal growth, recognition, responsibility, a sense of achievement, meaningfulness of duties, and the nature of the work itself. According to Herzberg, motivators create job satisfaction. Therefore, they are linked to improvement in job performance. In their absence, employees will not be satisfied and performance levels will be low. In terms of motivators, Starbucks uses several motivation strategies. At the entry level, all employees, including baristas, shift supervisors, and retail managers are taken through rigorous training programs. While on the job, employees receive continuous training through an online portal that provides instruction programs to impart up-to-date job knowledge. This way, the company equips its employees with the knowledge and skills required for effective job performance, thus augmenting their confidence and competence in delivering services at their areas of deployment.
In addition, Starbucks has formal and informal programs that recognize employees for exemplary performance at all organizational levels. Recognition is an intrinsic motivational reward for employees as it signifies appreciation of their efforts by the management. Starbucks also affords employees opportunities for personal growth and advancement so that they do not stagnate at a one-job level. Noteworthy, the company has employee resource groups (partner networks) that bring together employees who have mutual interests, assisting in connecting them to opportunities for growth as well as ways to serve their communities. A survey by UBS shows that Starbucks’ employee satisfaction level is 30% higher than that of employees in competing organizations in the fast-service restaurant segment. This is a strong indicator of the effectiveness of the motivators that the company includes in motivation programs.
Motivation is strongly associated with job performance. Motivated employees have an innate drive to achieve goals that are consistent with the interests of their employer. Starbucks uses several motivation strategies to spur employees to deliver quality performance and foster commitment to the organization’s mission and vision. Starbuck's motivation strategies can be illustrated using Herzberg’s two-factor theory. According to this theory, employee motivation is composed of hygiene factors, which decrease job dissatisfaction, and motivators, which create job satisfaction.
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