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Starbucks CEO Brian Niccol has announced the company will double parental leave after hearing from employees that existing policies “weren’t adequate.”
The expansion of parental leave benefits is a part of the “Back to Starbucks” plan in which the company aims to offer “the unrivaled best job in retail.”
Beginning in Spring, store employees – called ‘partners’ by the coffee chain – will see their parental leave double or even triple. Partners are currently entitled to six weeks’ paid parental leave.
For birth mothers, this will triple to 18 weeks of leave at full pay; for all non-birth partners welcoming a child through their spouse, a domestic partner, a surrogate, adoption, or fostering, this will double to 12 weeks of leave at full pay.
In both cases, the policies only apply to part-time staff who work 20 hours a week or more.
Starbucks said it strives to be a “retail industry leader in employee benefits.”
Why did Starbucks expand its parental leave policies?
In a statement and accompanying videos shared with employees, Niccol said: “We are more than doubling paid parental leave for our US store partners who work an average of 20 hours a week or more.”
Since joining the business four months ago, Niccol has attempted to turn around Starbucks’ slump in financial performance, including a fall in sales this year.
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While he has taken unpopular measures including cutting staff bonuses by 40%, the executive is also embracing swift decision-making and two-way transparency with employees.
He said the matter of the company’s leave policies came to his attention “after hearing from some partners who shared the leave as new parents weren’t adequate.”
Speaking to Fox Business, Niccol recalled an email from an employee. “It caught my attention. I followed up with the team, and then we reached out to a few more partners," he said.
An email from Starbucks to HR Grapevine said Niccol “hit the road, visiting stores, meeting with partners, and internalizing their feedback and suggestions.”
“Partners noted how important it is to have more time with their family and realized this is an investment we can and should make as quickly as possible,” the statement continued.
“This news not only reinforces Starbucks continued role as retail industry leader in employee benefits, but more importantly gives our partners security and support in their life outside of our stores,” the company said, pointing out that paid leave is a leading benefit for employees, particularly Gen Z.
Other major US employers have been in the spotlight over their parental leave policies, including Netflix and Google. Both have pushed back against allegations - and in Google's case, a lawsuit - that they have targeted employees on parental leave with layoffs.
What else did CEO Brian Niccol say about the parental leave decision?
In the video to employees, Niccol shared his belief that Starbucks is giving its employees an “unmatched opportunity to grow their career with us.”
“Supporting our people is just good business and our shared success, he added. The statement also included a list of other policies offered by the company as it seeks to offer the ‘best job in retail.’
This includes The Starbucks College Achievement Plan, a scheme that covers 100% of college tuition for 25,000 current employees, and the Bean Stock program, where eligible staff are given Starbucks stock grants.
Last month, the coffee giant also announced a goal to fill 90% of retail leadership roles through internal hires.
Niccol told Fox Business that the company is now committed to listening and embracing feedback, wherever possible, that partners share.
“We have a culture of ideas, but we also want to have a culture of we make decisions, we take action and we hold ourselves accountable on the execution,” he stated. “That’s been kind of the deal I’ve been making with people as I go to stores, as I reply to emails, as I do communications, whether it’s letter or video.”
