Uniquely brewed for success

THERE are a host of award-winning companies and then there is Starbucks, perhaps another award-winning company, but a unique one, something else altogether. With more than 205 stores across the nation, Starbucks is on a roll, opening some 30 stores per year, ranking high on the “best companies” lineup and winning awards.
“People think we are in the coffee business but in fact, at Starbucks, we are in the people business … serving coffee,” reveals June Beh (pix), director of partner resources and compliance Malaysia & Brunei.
MORE THAN JUST A COFFEE COMPANY
This year Starbucks topped many others as the “Best company to work for in Asia” under Malaysia’s Best Employers 2015 by HR Asia and the “Best of the Best” under Best Employer 2015 by Aon Hewitt. It also bagged a silver award at the Malaysian Institute of Human Resource Management (MIHRM) awards ceremony in the HR category as “Employer of Choice”. Moreover, June also attained a gold award as “HR Leader of the Year” from MIHRM.
Far from just brewing and serving coffee, June who heads the HR department with her lean (and sort of “mean”) team of less than 20, shares a thing or two about what makes Starbucks tick in the “best employer” department.
“In this age and time, I think businesses have matured and evolved. The way HR is run and people are managed also need to grow and develop with the times,” says June.
Here at Starbucks, employees are referred to as “partners”. And partners are not expected to simply take instructions from the “support centre” (another preferred word, this one referring to corporate office personnel). “We do not wish our partners to be like robots,” says June.
The HR director began her career with Starbucks a good 10 years ago. “Back then, I started off as a HR manager, in charge of recruitment, salary and compensation. I was promoted over time, to a senior manager taking on the responsibility for employee learning and development which included training of ALL partners – retail and corporate.” Recently promoted to director of partner resources and compliance, seeing to the full HR spectrum, including quality assurance (of products, standards and procedures), as well as safety and security (audit, ops procedures, employee safety, robbery, et cetera) – in short, compliance, where people and standard operating procedures are concerned.
PROCEDURES AND PROCESSES
June reveals that ALL partners are required to undergo a 13-module training programme. “Regardless if one works in the corporate office, on the floor, as a receptionist or a manager … the programme is a must for ALL Starbucks’ partners,” informs June, a “coffee master” herself.
Training is very structured (according to modules) and includes classroom and hands-on learning sessions. Partners are paired with a manager who helps groom and develop the individual in line with the company’s growth. In fact, Starbucks’ training modules are the outcome of evolution over the years. Although directly from Starbucks International, the modules are injected with some local processes to customise the training and procedures according to our local culture. “But the core procedures are strictly followed,” informs June.
With all procedures and policies in place, one cannot run away from challenges. At Starbucks, its biggest hurdle is keeping up with the company’s expansion plans and staying ahead of the game. “At the rate we are growing, we can’t afford to run, we need to sprint,” explains June, referring to the whole gamut of the business, from opening of new stores, to employment, training and getting partners ready to deliver the brand promise, et cetera.
While many believe that it is not easy to work with or manage people, June says, “At Starbucks, as we are in the people business … serving coffee, we take it upon ourselves to empower our partners who are our employees. We give them a sense of belonging, pride to be part of the Starbucks family, an international brand. We are absolute on training and guiding our partners in helping them find passion in what they are doing at Starbucks. It makes them more accountable and responsible, as though it is their own business. I would say that empowering our partners is the secret to our success and the reason for our HR awards.” Then again, she does not deny that Starbucks’ “Four Pillars” definitely had a part to play in the company’s achievements.
STARBUCKS PILLARS
While empowerment of partners at Starbucks stems on trust – trust in a barista’s decision to make a new drink if a customer complaints; trust in their partners to use their discretion in dealing with difficult situations; trust in their people to take their job as something more personal – June says it’s a two-way system. “Many companies look out for the negative, but we look for the positive and empower our partners … it works a lot better. We have gained more than not.
“With the 205 stores and the business expanding so quickly, we do not want to educate our partners to just follow SOPs, especially just becausewe are around. We want them to be confident and take pride in their role, especially when people are not looking, not do right just because they are afraid of being caught,” explains June. In this way, monetary gains are important yet secondary. In fact, partners voluntarily donate to a CUP (Caring Unites Partners) fund every month.
FOUR PILLARS OF STARBUCKS
1) Employee branding – Starbucks empowers partners so much so, each is proud to wear the iconic “green apron”. Its branding is its promise to its partners, a brand partners want to be associated with, a brand that provides excellent partner experiences. “Although we are known for our coffee, it is our partners that make the coffee…”
2) Partner development – Starbucks provides structured learning programmes for ALL stations and positions. Both partners and the company grow and develop in tandem. “Many start as part-timers not ready yet to build a career with us. Then after graduation, they return, feeling part of the Starbucks family. At the rate we are growing, there are many positions to fill, opportunities are tremendous.”
3) Coffee and culture – Whether to learn more about coffee, coffee art, join the support (corporate) office or just because … ALL partners undergo the one-month basic barista programme. It is a continuous learning process at Starbucks. “We do not just sell coffee but also develop our partners’ skills and add value to their learning experiences. There are seminars and workshops, inter-personal and skills development training, even coffee tasting and coffee certification/exams that educate, empower and instil passion. When our baristas speak, it is more than just words as most know the value having experienced the “last 10 feet” of the coffee beans’ growth.”
4) Love and humanity – This is where the human touch comes in…nothing scientific. “We need human connection. And our baristas are in constant connection with our customers. So, this is where you could say we put heart into the business, through our CUP fund and corporate social responsibility initiatives. It makes our partners feel good to belong to a company that cares. They also feel empowered knowing they have managed to make a difference and help others. Besides, it makes us feel proud to develop partners that care.”
“We believe that not everyone comes in (to work with Starbucks) perfect. We also believe that the environment moulds them. So, we pair a good manager with a good team and put that partner in that environment to develop and improve. It’s like cultivating a good eco-system and growing from there,” shares June. She describes the turn of events after that, as a cycle. “It’s not how long or short a term a partner stays with Starbucks, but how deep into the experience and what they take out from it,” the HR doyen enlightens.
Interesting recruitment facts
► The company looks for people with the right attitude, not necessarily those with paper qualifications. Behavioral questions and situations are a norm during interviews.
► Starbucks only employs Malaysians and only Malaysians.
► No microchips injected or stringent processes and blood tests during interviews, just the regular simple application form, which the company is looking into simplifying even more.
► About RM1,000 is invested in training each partner on employment. Part-time or fulltime – everyone receives the same training, benefits, discounts, meal provisions, et cetera, as everyone is equally important.
► Starbucks has a VIP programme. The company employs retirees. Yes, you read right. The older generation are considered “very important people” at Starbucks. Instead of staying home watching TV, being idle or bored, simple tasks are given to VIP partners according to their capabilities. Starbucks’ oldest VIP partner is a 73-year-old man who works at an outlet in Johor.
► Wow cards and recognition pins are just some of the ways partners are thanked and praised for jobs well done.
► Managers of the year are sent to coffee farms abroad, that partner with Starbucks. Here, they receive exceptional experiences that make their career at Starbucks more meaningful.
2015 LIST OF AWARDS
HRASIA
1. Best Companies To Work For in Asia 2015 - Malaysia’s Best Employers 2015
MIHRM
2. Silver award winner, under Employer of Choice Category
3. Gold award winner, for HR Leader of the Year, (June Beh, Director of Partner Resources & Compliance, Starbucks Malaysia & Brunei)
AON HEWITT
4. Best of the Best Award - Best Employer 2015 - Starbucks Coffee Malaysia