For Starbucks, boosting benefits in a tight labor market is a logical way to gain good PR that will help it attract better employees. (Photo: ALM File)
Starbucks is doubling down on its reputation for good employee benefits. The Seattle-based coffee giant announced in a letter to employees last week that it plans on bolstering its mental health benefits for workers.
CEO Kevin Johnson did not specify what the new offering would entail but said that he wanted to encourage more employees to take advantage of mental health counseling. The company already pays the full cost of six counseling sessions but only 4 to 5 percent of the workforce uses them, Johnson recently told CNN.
Johnson has suggested that employees would be more inclined to participate if they could connect with counselors more easily, including through unconventional methods, such as texting. In the coming months the company will gather feedback from workers to try to craft a plan that more employees will feel comfortable using, he said.
In 2016 Starbucks Canada began contributing $5,000 towards employee mental health benefits, about ten times more than the typical employer in Canada. While Canadians all have access to a publicly funded health care system, most have supplementary insurance and accessing mental health treatment in the public system is reportedly difficult.
"I commend Starbucks for not only expanding mental health benefits but for helping to break down barriers to accessing these services. It is not enough to offer mental health benefits," said Shira Wilensky of OneDigital Health and Benefits in a statement. "Employers have to be willing to put policies in place and make environmental changes to breed a culture to support the success of these initiatives and employee well-being."
For Starbucks, boosting benefits in a tight labor market is a logical way to gain good PR that will help it attract better employees. Displaying a commitment to the mental well-being of workers can also bolster workplace morale.
An increasing number of employers are expanding mental health benefits and incorporate mental health into company wellness initiatives.
In response to Starbucks' announcement, Misty Guinn of Benefitfocus commented, "Employers should be offering a variety of voluntary benefits options to support employees' mental health and reduce stress at the source, like offering onsite child care for working parents, mandatory PTO policies and digital platforms that are an easy-to-use, confidential resource for employees seeking help. As the number of Americans with a mental health condition continues to rise, employers must ensure they're doing all they can to address this within their workforce."
California recently became the first state to put in place mental health standards for employers. Although the standards will not be mandatory, proponents hope they will serve as encouragement to employers.
The California law is reportedly largely the result of an advocacy effort by nonprofit One Mind at Work, which is funded by Janssen Research & Development, LLC, a major pharma company. One Mind has been encouraging employers to put in place a "charter" of mental health standards that it crafted. It has published research claiming that untreated mental health problems cost U.S. employers $190 billion a year in lost productivity and absenteeism.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
