Many companies today are reducing hours of full-time people to get under the minimum so they don't have to pay health care costs. I just shake my head because that's not going to build long-term value and trust with your people.

In this quote, Howard Schultz expresses concern about the practice of companies reducing the hours of full-time employees in order to avoid paying for health care benefits. Schultz points out that this approach, which is often used to circumvent costs associated with employee health care, may provide short-term financial savings, but it ultimately undermines the relationship between employers and their employees. By denying workers access to essential benefits, companies risk damaging trust and loyalty with their workforce.

Schultz argues that such practices are short-sighted and not conducive to creating long-term value for a company. In his view, building a strong, trustworthy relationship with employees requires offering fair compensation and benefits, including health care. When companies take steps to reduce benefits or avoid providing critical support like health insurance, they diminish the sense of security and commitment that employees have toward the company.

The quote reflects Schultz’s broader philosophy on business leadership and employee well-being. As the former CEO of Starbucks, Schultz has long advocated for the importance of employee benefits and care. His approach to business was centered on the idea that treating employees well—by providing benefits, fostering a positive work environment, and promoting trust—leads to greater loyalty and productivity, which ultimately drives the company’s long-term success.

Ultimately, Schultz's statement serves as a reminder that while businesses may save money in the short term by cutting employee benefits, this strategy can harm employee morale and hinder long-term success. For Schultz, companies should prioritize building trust and offering comprehensive support to their workers, ensuring that their employees are treated fairly and supported in their health and well-being.