When Employee Benefits Become a Customer Line Item

Victoria Purser
Jun 20
2 min read

From HR's POV: The viral Starbucks surcharge is more than a fee—it's a leadership audit.

By Victoria Purser, Founder & CEO, ConquerHR® and Co-founder, HRLearns™ | @therealvpofhr

When a Starbucks receipt from JFK Airport started circulating online last week, it wasn’t the drink order that grabbed attention—it was the fee listed just below it:

"3% Employee Benefits & Retention" surcharge.

It was just $0.92. But for HR professionals, it wasn’t just a charge. It was a mirror. And what it reflects is what this article is here to unpack.

THIS WASN’T A MISTAKE. IT WAS A MESSAGE

Starbucks later clarified: the surcharge was imposed by a third-party operator, not the corporate entity. But in the public eye, Starbucks is Starbucks.

Customers see the logo.

They see the fee.

And they start to question: Why am I subsidizing retention?

From HR's point of view, this is a critical error: transparency was replaced with assumption, and employee care became a customer transaction.

"When care becomes a transaction, trust becomes collateral."

THE REAL COST OF HIDDEN FEES

Over 1,000 Starbucks transactions happen daily in JFK Terminal 5. Multiply that $0.92 by volume, and you’re looking at:

$920/day
$6,440/week
$334,880/year

That’s a staggering annual amount supposedly funding "employee benefits and retention." But there’s no visibility. No breakdown. No impact report.

HR L

esson #1: If customers are paying for care, HR better be tracking what it delivers.

CAREWASHING: THE NEW ETHICAL RISK

Let’s call this what it is:

Carewashing.

It’s the signaling of employee investment without structural support. And it tells your workforce:

"We care about you. But only if someone else pays."

That doesn’t build loyalty. That commodifies it.

HR Lesson #2: You can’t surcharge or tip retention. You build it.

IF EMPLOYEE CARE IS A LINE ITEM, AUDIT THE IMPACT

If your company allows third-party operators or franchisees to add surcharges like this, HR has a responsibility to:

Validate use of funds
Ensure employees receive real benefits
Maintain internal equity with corporate employees
Hold vendors to your employer brand standards

This isn’t just PR risk. It’s HR risk.

THE LEADERSHIP TAKEAWAY

Whether you lead a team of 5 or a region of 5,000, this moment is a wake-up call:

You cannot outsource the human experience. You must own it.

When employee care becomes a customer surcharge, HR must ask:

Are we still leading?

And if not—what does rebuilding leadership look like in a trust-fractured workforce?

NEXT STEP FOR HR LEADERS

If this article struck a nerve, it’s time to equip yourself to lead through generational expectations, transparency demands, and talent fatigue.

Join us for our upcoming HRLearns™ Workshop:

HOW TO MANAGE GEN Z: Train, Coach, and Lead with Confidence in Today's Workforce

Led by HR strategist and leadership coach Brenda Neckvatal

🗓️ July 17, 2025 , 1 - 2:30 PM ET | 12 - 1:30 CT | 11 - 12:30 MT | 10 - 11:30 PT

🔗 Register HERE

We’ll tackle real strategies and HR initiatives to manage, retain, and elevate performance across generational lines—without gimmicks, and without line-item excuses.

Limited seats available:👉 Secure your spot now