How to Reduce Turnover

Starbucks has achieved its award-winning corporate culture in large part through the moves and decisions made by Howard Schultz and his leadership team. His leadership has focused on creating a culture in which employees can soar, so that employees will be able to work happily. The employee's turnover rate at Starbucks, according to some reports, is 120 percent less than the industry average. Maryann Hammers states in Workforce Management, "Starbucks employees have an 82% job-satisfaction rate, according to a Hewitt Associates Starbucks Partner View Survey. This compares to a 50% satisfaction rate for all employers and 74% for Hewitt's 'Best Place to Work' employers" (www.safaribookonline.com). It is because Starbucks treats their employees not just employees but as essential partners to their business. Based on Kreitner and Kinicki (2008: 175), job satisfaction and turnover have negative relationship. It means that Starbucks provides high job satisfaction for their employees.

Howard Schultz, Starbucks' CEO, does unconventional approach to his leadership style. He involved the employees of Starbucks to be the part of Starbucks' successes. Schultz decided to give some of them back to employees in the form of stock options. While other firms offered options only to key senior executives, Schultz made them available to everyone who is working 20 hours a week or more, including those standing behind the counter at a local Starbucks store. Through this profit sharing, everyone can feel respected and give them a motivation to do more for their job. They not only maximize their ability to give their best for company's success, but also for gaining more profit by buying stock, which can be done by working more than 20 hours a week. These actions which are done by Starbucks show equity can affect job satisfaction. Based on Kreitner and Kinicki (2008:172), equity is about how fairly an individual is treated at work. In Starbucks, the longer you work, the more benefits you can get. Moreover, Starbucks also shows motivation and job involvement by doing actions above. Starbucks gave reward and motivation for employees who show their effort to do their job. Besides, Starbucks implemented job involvement well. Starbucks involve all people who contribute to Starbucks' success by offering stock options not only for key senior executive, but also for who are working more than 20 hours, so that employees can feel that they are part of a company.

Starbucks also focused on training and educating employees. In contrast to most Fortune 500 companies, Starbucks consistently spends more on training than it does on advertising (www.safaribookonline.com). It means that Starbucks gives need fulfillment for its employees. By doing training, the need fulfillment is self actualization. They are trained in order to do some task and give the best they can do. Starbucks also fulfill employees' safety need by giving life insurance and need to be respected by treating employees as a partner, and so on.

Furthermore, Starbucks also give reward as a bonus, incentive, or promotion based on employee's job performance. Besides, Starbucks