This story was originally posted on MyNorthwest.com
Starbucks announced Monday it will significantly increase parental leave for hourly part-time employees, CEO Brian Niccol said in a letter to employees.
Starting this spring, parental leave benefits for store workers will triple for birth mothers and double for all other non-birth parents welcoming a new child through birth, adoption or long-term foster care.
“Work-life balance is now one of the top factors job seekers consider, often ranking as high as salary,” Joe Barnes, a professor at the Seattle University Albers School of Business, told MyNorthwest. “Employees are increasingly prioritizing work-life balance, with trends showing a shift towards greater flexibility, remote work options, and a focus on well-being.”
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Currently, store workers receive six weeks of paid parental leave. Under the new policy, birth mothers will receive 18 weeks of leave and non-birth parents will receive 12 weeks at 100% of their average pay. To be eligible for these benefits, employees must work an average of 20 hours per week.
“It caught my attention,” Niccol told FOX Business. “I followed up with the team, and then we reached out to a few more partners. This is one we can take action on.”
Niccol has been visiting stores and gathering feedback from workers, who emphasized the importance of having more time with their families. This feedback led to the decision to enhance parental leave benefits.
“This plan seems very reasonable as employees put more emphasis on work-life balance,” Barnes said. “Poor work-life balance is a major reason for employee turnover, with many willing to leave a job for a better balance.”
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In comparison, Amazon does not offer parental leave benefits to part-time employees; their parental leave policy is primarily designed for full-time employees, providing up to 20 weeks of paid leave for birthing parents and six weeks for adoptive or supporting parents.
There are also no parental benefits for part-time employees at Walmart. Full-time hourly and driver associates are eligible for up to six weeks of paid parental leave after 12 months of service. Salaried and truck driver associates are eligible from the date of hire.
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