The Seattle Times reports that "Starbucks plans to significantly boost racial diversity among its workforce — and it’s making that goal a factor in the pay of its senior executives … Starting in 2021, the compensation of … senior executives will be tied to the company’s success at meeting those goals, although the company declined to offer details."
According to the story, "By 2025, the Seattle coffee giant wants people of color represented in at least 30% of roles in corporate operations and 40% of retail and manufacturing roles, CEO Kevin Johnson told employees Wednesday. The goals, part of an ongoing effort to encourage diversity, reflect the company’s obligation 'to build bridges and create environments where all are welcome,' Johnson said."
The Times writes, "Currently, 18.5% of its 43 top executives — senior vice-presidents and higher — are people of color, the company said. In its retail operations, people of color make up 23.5% of regional vice presidents, 27.1% of regional directors, and 34.9% of store managers. By contrast, Starbucks has already reached its diversity goals in several categories. These include vice presidents (31.6% of whom are people of color) shift supervisors (44.3%) and baristas (48.5%)."
- KC's View:
A noble approach, I think.
A lot of companies talk the talk, but the notion of connecting compensation to diversity achievements actually has the potential for making a real difference.
This creates mindfulness. It forces people to actually consider realities outside their own experiences. It creates compelling reasons - beyond the fact that it is right - to institutionalize the education of people within the organization and the heightening of sensitivities. It enables and rewards people for asking important questions: Are we doing the right thing? What is the right thing? Are we doing our best to empower all of our people, and providing opportunities at every level of the business for people who don't look like us, don't think like us, and won't necessarily act like us - because it is by creating such connections that we become a better, stronger company?