Starbucks, which has long been known to provide above-average compensation to its employees, is planning to further bolster health benefits through a private exchange.
All U.S. employees of the java giant will be able to pick a customized health plan from an online platform designed by Aon. The platform will include five levels of coverage from six insurers, Starbucks announced in a statement.
The company said it plans to cover 70 percent of the premiums and 100 percent of preventative services for its 160,000 workers. In 2015, it boasts, it invested more than $280 million into employee health coverage and paid more than $60 million into its workers' retirement plans.
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The new system is not just generous, argues the company, but smart and flexible. It touts its partnership with Healthcare Advocates, a service that helps people select benefits and providers based on their needs.
"Providing industry-leading benefits for eligible full- and part-time partners is a cornerstone of who we are as a company," said Ron Crawford, Starbucks vice president of global benefits, in a company press release. "Much like a travel site, our partners will be able to navigate an easy to use online platform to choose between more insurance carriers and coverage levels at more competitive prices to help them find the right plan for their own needs."
The change comes in the wake of a petition signed by thousands of Starbucks employees that claimed that hour reductions and low pay made it difficult or impossible for many workers to afford the benefits that the company often highlights to the public.
Last week, Starbucks announced that it would raise wages for all of its employees by at least 5 percent, starting in October. A day after that announcement, prices increased by 10 to 20 cents for a number of its beverages.
Starbucks has also said it will double the amount of stock it awards employees who have worked at the company for at least two years.
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