How Starbucks is Addressing the Gender Pay Gap
Starbucks is committed to 100 percent gender pay equity. We’ve achieved it – and maintained it – for partners in the U.S and we’re also working toward reaching 100 percent gender pay equity for Starbucks partners globally.
Updated May 2023
Starbucks is committed to 100 percent gender pay equity. We’ve achieved it – and maintained it – for partners in the U.S and we’re also working toward reaching 100 percent gender pay equity for Starbucks partners globally. Learn more about reasons for the gender pay gap and the best practices and tools Starbucks uses to close the gap.
How Starbucks is achieving 100% pay equity
Working with experts and our partners (employees), we’ve developed a set of principles and best practices designed to address systemic barriers impeding equal pay for equal work. We believe it is important for others to join us, not just at Starbucks but at companies around the globe.
Below, see the common reasons for the U.S. and global pay gap followed by some examples of how Starbucks is working to achieve pay equity. (Exact methods are dependent on the unique conditions of different markets.)
HIRING
Starting compensation offers are subjective and determined by the hiring manager, allowing for the effects of bias.
We create all compensation offers consistently. For our most common jobs, we use an offer standards calculator to determine target starting pay ranges based on a candidate’s experience. Other offers follow a set of guidelines that account for geography and capability in role when setting pay within a competitive range.
Candidates asked for their salary history results in “importing” pay inequities to new roles.
We do not ask for compensation history. We do not use someone’s prior compensation to determine the base compensation offer for a new role.
Lack of transparency about pay ranges for roles within companies.
We post pay ranges for all open jobs in the U.S. and provide pay ranges for Canadian job candidates who ask.
BENEFITS & DEVELOPMENT
Women tend to be responsible for caregiving and miss out on job opportunities and compensation as they balance competing needs. Experts call this a “motherhood penalty.”
Offering benefits like paid family, medical and sick leave and access to ten days of childcare or eldercare through Care.com (for select U.S. partners) helps make sure partners can participate fully in the workforce – including those balancing caretaking responsibilities.
Raises and bonuses are subjective and determined by the manager, allowing for the effects of bias.
We have clear and consistent processes for annual pay increases and bonuses. These decisions are statistically analyzed before being finalized to make sure we do not have biased outcomes.
CULTURE
Women are less likely to hold higher-paying management and leadership positions.
We’re committed to fostering a culture of inclusion—providing equal opportunities to all our partners and we have set goals regarding the representation of women (and people of color) in management and leadership.
Employees are afraid to ask about pay for fear of discrimination or retribution.
We are focused on creating a culture of transparency when it comes to pay, and we want all our partners to understand how our compensation programs work— as well as their own pay package. Our Pay Transparency journey approach is underway, inclusive of systematic enhancements to improve access and visibility to pay data as well as both manager and partner education.
Pay is an important topic for everyone. Our partners need to be well informed, and our leaders need to be diligent and thoughtful about pay decisions. Partners will never be subject to discrimination or retribution for discussing pay with their manager.
Additional information
Learn more about gender pay equity: Equal Pay and the Wage Gap by National Women‘s Law Center.
Read more about how Starbucks addresses the gender pay gap: Starbucks Civil Rights Assessments.
