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Building a Business: Lessons from Starbucks and Hiring Your First Employees

Nance Schick · Jul 24, 2024 ·

When building a business, there will be many lean days that humble you and make you wonder whether you should quit. Even the original owners of Starbucks Coffee Company must have experienced them when they opened their first roasting and retail location in 1971 Seattle. They were operating 16 years before Howard Schultz, a former employee, bought the chain and built it to what we see worldwide today. It took someone who had worked in the stores and performed all of the necessary functions to see what was possible and to put a growth plan in action. It took a risk-taker and a visionary with a commitment to the business and its employees.

Hiring the right employees can make all the difference in your business’ success. Here’s how one large corporation does it.



Starbucks’ Effective Employee Management and Success Stories

Starbucks is renowned for its effective employee management and commitment to creating a positive work environment. Inspired by his visit to Italy’s coffee bars, Schultz envisioned Starbucks as a “third place” between home and work where people could relax and enjoy a sense of community. This vision extends to its employee management. Understanding their vital contributions, the corporation refers to employees as “partners” and offers:

  • Comprehensive Benefits. Starbucks offers comprehensive benefits to both full-time and part-time employees, including health insurance, stock options, and tuition reimbursement.
  • Flexible Scheduling. This employer provides flexible scheduling to help employees balance, if not integrate, work and life demands.
  • Inclusion in Decision-Making. Starbucks regularly conducts surveys and feedback sessions to understand and address employee concerns.

Schultz once said, “We are not in the coffee business serving people. We are in the people business serving coffee.” This philosophy has been central to Starbucks’ success and its ability to build a loyal and motivated workforce.


Key Considerations for Hiring Your First Employees

Not everyone wants to be the next Starbucks, but you probably won’t be able to build your business without hiring employees. That significant milestone comes with a set of responsibilities and considerations that are crucial for long-term success.


Perception by Government Agencies

Employee protection agencies often view employers as potential exploiters. This means that as an employer, you will have the burden of proving that your actions are justified whenever they are challenged by your employees. This scrutiny underscores the importance of maintaining current and accurate documentation of all employment practices and decisions. Proper documentation can serve as evidence that you are complying with laws and treating your employees fairly.


Photo of Nance Schick and Team JALBCA before the 2019 NYC Race for the Cure


Compliance with Employee Protection Laws

When you hire employees, you are agreeing to comply with various employee protection laws. These laws are designed to ensure employees are treated fairly and kept both physically and mentally safe.

Because employers benefit the most from employee labor and are in a better position to understand and mitigate risks, the legal obligations fall on them. Compliance helps you stay out of court, but it also builds trust and loyalty among employees.

Tips for Keeping Employees Safe:

  1. Conduct Ongoing Safety Training. Train all employees on safety protocols and procedures, but don’t stop with knowledge delivery. Reinforce best practices consistently and on a daily basis.
  2. Maintain a Clean and Safe Work Environment. Regularly inspect the workplace for potential physical and mental hazards. Remove or repair them promptly.
  3. Encourage Open Communication. Create an environment where employees feel comfortable reporting safety concerns without fear of retaliation. Earn their trust by prioritizing their well-being.


Importance of Accurate Documentation

Accurate and up-to-date documentation is legally required to ensure employees are properly paid, trained, and protected. It is also crucial when the inevitable workplace disputes arise. From employment contracts and performance reviews to records of disciplinary actions and other relevant interactions with employees, thoughtful documentation can clarify expectations and guide all of you to success.


Conclusion

Hiring your first employees is a significant step in building your business. You can grow in a variety of ways, as long as you:

  • Comply with employee protection laws
  • Ensure a physically and mentally safe work environment
  • Maintain accurate documentation to prove you’ve done all the above

Ready to add employees?

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Frequently-Asked Questions About Employee Protection Agencies

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