Case Study: Starbucks Pay Package

Starbucks total pay package, called ‘Your Special Blend’, which we will compare against the benefits of Tim Horton’s benefits program is called ‘Team Tim Hortons’. “Tim Horton’s employees require six months of continued employment to be eligible to be on Team Tim Horton’s and receive benefits, which is also contingent on hours worked (Tim Horton’s, 2015) Tim Hortons considers employee’s benefits a voluntary contribution by the company to its employees and it is subject and conditional to ongoing profitability. The program will be reviewed and evaluated every year and the company reserves the right to change or terminate indirect benefits depending the company’s fiscal results for the year. To be eligible for benefits at Starbuck’s partners receive benefits after 90 days of service as long as they maintain 20 or more hours a week. Starbucks also offers their employees more stability with their

These services cover: emotional concerns, financial concerns, legal concerns, and work-life concerns. Furthermore, in terms RRSP contributions and financial benefits Tim Horton’s offers automatic payroll deductions to contribute on RRSP without any extra benefit or additional contribution made by the company. Starbucks offers many financial benefits including the ‘Bean Stock Plan’, this benefit is designed to give a broad base of partners the opportunity to own shares of Starbucks stock. Their Stock Investment Plan (SIP) is an easy way to acquire Starbucks stocks at a 5 percent discount. Eligible partners can contribute 1 percent to 10 percent of their base pay each pay period. Finally, annual contributions to RRSP can be made through automatic payroll deductions. Starbucks will match every employee’s contribution dollar for dollar (to a maximum of 2% of her/his salary) directly into a Deferred Profit Sharing Plan