Starbucks announced Monday that it will double paid parental leave in the U.S. to attract and retain more employees.
Birth parents will receive up to 18 weeks of full paid leave, and non-birth parents will receive up to 12 weeks. Currently, employees receive six weeks of paid parental leave. The move will begin in March 2025 for those working an average of 20 hours per week or more.
“No other retailer offers a better parental leave benefit for new parents,” CEO Brian Niccol said in a statement. “Our benefit was already the best in retail, but after hearing from some partners who shared the leave as new parents wasn’t adequate, we reviewed the program and have decided we’re making a change.”
Paid leave (parental, bereavement, caregiving) is reported as a leading benefit employees care about, rising to the No. 1 most important for Gen Z, according to data from MetLife.
Starbucks’ overall mission is to appeal to all workers, whether they value career opportunities, education, or supporting their families.
In the U.S., the coffee giant’s hourly workers earn an average of over $18 per hour, with barista wages ranging from $15.25 to $26 per hour. And there’s a clear path to go higher; the company wants to fill 90 percent of its leadership roles internally. A store manager conference is planned for the coming year to support this initiative.
The brand also emphasized its Starbucks College Achievement Plan—in partnership with Arizona State—which covers 100 percent of tuition for an online degree. Thus far, 15,000 employees have graduated, and another 25,000 will join them soon. To boost workers’ financial portfolio, Starbucks gave a Bean Stock grant (restricted stock units that turn into shares of Starbucks stock over two years) to more than 230,000 employees in December. Since this program started in 1991, more than 1.5 million employees have received $2.4 billion in company stock.
“As we get back to Starbucks, we’re making Starbucks the unrivaled best job in retail. Whether it’s career, college, or family, we’re giving our partners unmatched opportunity to grow their career with us,” Niccol said. ” … 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.”
The move is one of Niccol’s many initiatives to turn around Starbucks. North America and U.S. same-store sales declined 6 percent during the brand’s fiscal fourth quarter.
One notable change is the reintroduction of Sharpies for baristas. Additionally, the company plans to bring back condiment bars to all cafes by early 2025, allowing customers to customize their beverages, which is expected to improve service speed and clarity in the barista handoff process. To address a 10 percent decline in traffic during Q4, Starbucks is focusing on staffing strategies to ensure adequate coverage during peak hours, better service efficiency, and customer satisfaction. In response to guest feedback, Starbucks also eliminated the upcharge for non-dairy milks at company-owned North American cafes.
