Starbucks announced on December 16, 2024, that it is significantly expanding its paid parental leave benefits for eligible U.S. store partners. Starting in March, birth parents will receive 18 weeks of paid leave at 100% of their average pay, tripling the previous benefit.
This enhanced benefit is a core component of CEO Brian Niccol's 'Back to Starbucks' plan, which prioritizes ensuring Starbucks is the 'unrivaled best job in retail.' The investment aims to foster career growth, stability, and improve overall employee morale and retention.
While increasing labor costs, this strategic investment is expected to yield long-term benefits by reducing hourly partner turnover and attracting new talent. Improved partner engagement and retention are crucial for delivering consistent customer experiences and supporting the company's turnaround efforts.
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