The program, “Starbucks College Achievement Plan,” was launched last year in conjunction with Arizona State University to help college juniors and seniors complete their bachelor’s degrees. Going forward, the coffee powerhouse will cover the full cost of an online degree to any employee working at least 20 hours per week, or about 80% of its 140,000-strong workforce.
In announcing the enhanced perk, CEO Howard Schultz says Starbucks expects to spend upwards of $250 million on tuition reimbursement over the next 10 years, with some 25,000 degrees awarded to partners during that time. The move comes as restaurant chains like McDonald’s, as well as giant retailers like Wal-Mart, are raising their minimum wages and offering employees enhanced benefits in the face of an improving job market and heightened competition to retain high-quality workers.
Starbucks has also instituted a pay raise, but declined to give specifics. Schultz indicated that the company’s partners had requested the increased tuition benefit, and that he’d be open to considering providing reimbursement for master’s degrees down the road.