Starbucks’ turnaround strategy has made some favorable changes to support employees, but there have been an equal number of announcements that have left many unhappy. A new memo from CEO Brian Niccol was recently shared with workers outlining Starbucks’ RTO policy update, and employees are decidedly upset by the increasing emphasis on in-person work. Starbucks’ return to office mandate requires corporate workers to come into the office four days a week, but the change will not be enforced immediately.
The new Starbucks 4-day office policy will go into effect in October, so employees have some time to make adjustments while the offices also prepare for the influx of workers. The coffee giant expanded on its in-person policy in October last year, demanding that workers adhere to the three-day requirement for in-office work or face the consequences, which included the risk of being fired. The latest RTO mandate from Starbucks has similar implications, as workers who resist the change can expect some harsh consequences.
Starbucks’ RTO policy of spending 4 days a week in the office is particularly infuriating for many due to the flexibility CEO Niccol enjoys in working remotely from his home in Newport Beach.
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New Starbucks RTO Mandate Requires Employees to Come In Four Days a Week
Starting in October, Starbucks’ corporate employees will be required to work from the office four days a week instead of three. Those who do not want to comply can volunteer to take the company’s offer of a cash payment to leave in silence through the exit program that has been made available to them. Similar to every other company that has pushed for a return to the office, the Starbucks RTO program is being rolled out to increase in-person collaboration and problem-solving, which organizations believe is the true path to productivity. In the notice shared on the company website, CEO Niccol shared that:
“We are reestablishing our in-office culture because we do our best work when we’re together. We share ideas more effectively, creatively solve hard problems, and move much faster. Being in person also helps us build and strengthen our culture. As we work to turn the business around, all these things matter more than ever.”
The CEO acknowledged that many employees will need to travel to different locations for work or may need to step out to take care of their personal needs, however, the company culture’s default must be set to working in person alongside their teams. Starbucks and other businesses, such as Target, Intel, and Uber, have determined that real collaboration cannot occur online; working face-to-face is essential to maintain their momentum of progress.
Starbucks’ 4-Day Office Policy Also Comes with Relocation Mandates
The Starbucks RTO policy doesn’t just require workers to come in 4 days a week, but also requires Support Center “people leaders” to look into relocating to Toronto and Seattle within 12 months. Earlier in the year, the company had required some of its senior leaders to move closer to the organization’s main centers, and it appears that more employees will have to make a similar change in the coming months.
Starbucks’ turnaround plan has made its stance on remote work quite clear, with the CEO elaborating that future hiring and lateral promotions for such positions will also require partners to be based in Seattle or Toronto. The shift away from remote work is no longer surprising, but it still has employees frustrated at the change.
The “Back to Starbucks” Turnaround Plan Has Been Extremely Controversial
Ever since the ex-CEO of Chipotle, Brian Niccol, took on the role of the CEO of Starbucks, the company has been working on its expansive “Back to Starbucks” strategy with full vigor, making innumerable changes to how the business operates. To increase foot traffic at its many locations and turn Starbucks outlets into community hubs instead of quick pit stops, the company has begun transforming how it operates by emphasizing the importance of its employees.
Certain aspects of the strategy, such as the new dress code and the current RTO policy, have been met with resistance, while other aspects, such as the emphasis on internal promotions and the offering of improved benefits, have been received positively. The double standards seen with CEO Niccol’s own freedom to work from home have been particularly frustrating for employees. The CEO was given the freedom to work from his California residence, with the provision of the company jet to travel to Seattle when necessary. Reports now indicate that he has a new home in Seattle, but it’s unclear if he will be required to come into office with a similar frequency as the employees.
Starbucks’ 4-day office policy may still give the illusion of a hybrid work model, but it is likely that this too will change in the coming years, with a complete switch to in-person work. The many benefits of remote work have enthralled workers over the last four years, but the flexibility is fast disappearing, despite its many advantages. Organizations that still offer remote or hybrid work opportunities enjoy an obvious advantage in the market right now, as it is among the most sought-after benefits among job seekers, but it is an offering that is fast disappearing.
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