With Netflix’s parental leave policy on shaky grounds, Starbucks’ parental leave policy is now offering to provide industry-defining benefits to employees by doubling the leave allowance currently available to workers. On a mission to make Starbucks “the Best Job in Retail,” the company has decided to expand its leave policy after employees indicated that its current 6-week program was insufficient for them.
Starbucks is now offering 18 weeks of parental leave for birth parents, a big leap forward from the 6 weeks earlier, however, this will be available only for eligible U.S. store partners. Non-birth parents are also going to benefit from Starbucks’ expanded parental leave policy, albeit to a smaller degree.
Image: Starbucks
Starbucks’ Parental Leave Policy Is Expanding in March 2025
Starbucks is committed to making workplace improvements and has made this ambition quite apparent ever since Brian Niccol took over as CEO. Starting in March 2025, new parents who work at least 20 hours a week will get up to 18 weeks of paid time off.
Additionally, non-birth parents will receive up to 12 weeks of leave at full pay. This will allow employees who are adopting to also have time to bond with their children without having to worry about loss of pay.
“At Starbucks, we’re making it clear that when you put on the green apron, you’re making your future possible. That’s because supporting our people is just good business, and it fuels our shared success,” Brian Niccol, Chairman and Chief Executive Officer, said while announcing the updated policy.
“No other retailer offers a better parental leave benefit for new parents. Our benefit was already the best in retail, but after hearing from some partners who shared that the leave as new parents wasn’t adequate, we reviewed the program and have decided we’re making a change,” Niccol, added in the press release.
Starbucks is on a mission to increase foot traffic and regain the same kind of patronage it has enjoyed in the past, but the path to achieving this goal is rife with roadblocks. Interestingly, the company appears certain that one of the pathways to achieving its goal, is through the training and upliftment of the faces of Starbucks—the workers.
Starbucks’ Parental Benefits Expansion Efforts Add to Existing Perks
Apart from the new and improved family leave policy, Starbucks also has a collection of other benefits to entice workers to apply to, and stay at, the organization. The Starbucks College Achievement Plan (SCAP) provides eligible Starbucks partners an opportunity to get a bachelor’s degree from Arizona State University. The coffee giant has offered to cover 100% of tuition for a course that would have otherwise cost an average of $75,000.
More than 230,000 employees also received a “Bean Stock” grant, giving them an ownership stake in the company. This way employees have a greater investment in ensuring the company’s performance and they also benefit from their employer’s success.
Additionally, the company has also announced its intention to fill 90% of retail leadership roles in North America internally, promising workers the opportunity to move up the ladder and build a career at Starbucks.
The company has over 361 thousand partners who play the barista role at their outlets globally, so there are a large number of employees under the company’s wing who play a role in the company’s performance. Their upliftment should help the company perform better as well.
Not All News From Starbucks Has Been Positive These Last Few Months
With falling sales and rising boycotts from customers, Starbucks has had a tough year in 2024. The organization also faced considerable unionization efforts that it has largely been resistant to, although Niccol has been more understanding about the workers’ position on the issue since he took over.
Last week, Starbucks also informed the workers that they should expect smaller pay raises this year in light of the financial results it witnessed through 2024. Earlier, senior workers could expect a 3% raise with those with more than 5 years of experience in line for a 5% raise. Now, depending on seniority, the pay increases could amount to a 2-3% hike.
From a financial perspective, this limited pay raise does make sense as it still gives employees a hike in wages for the new year without having to cut raises completely. Employees are likely to be disappointed, but Starbucks has been insistent that the pay is only one part of the overall compensation plan that caters to the worker’s interests.
