Why is offering parental benefits important for employers?
Starbucks is bolstering its parental benefits, giving new parents more financial support during a pivotal life stage.
Beginning in Spring 2025, the coffee giant will provide up to 12 weeks of 100% top-up on Employment Insurance (EI) benefits to employees welcoming a new child.
This new benefit will be available to Canadian store partners who work an average of 20 hours per week or more.
“When combined with our leading fertility and family expansion offerings, no other retailer in Canada offers better family benefits than we do,” said the employer.
Previously, Starbucks noted that full- and part-time benefits-eligible partners can receive paid parental leave and other benefits like Family Expansion Reimbursement which covers up to $40,000 in eligible costs for adoption and surrogacy, as well as health plans with coverage for various fertility services like IUI and IVF.
In 2024, Starbucks launched its Partner Choice Benefit for staff who work a minimum of 20 hours per week. Under the program, benefits-enrolled employees in Canada can now select either a Health Spending Account (HSA) or Personal Wellness Account (PWA), each of which comes with an annual set amount of funds that can be put toward a variety of out-of-pocket expenses.
New paid parental leave benefit
Also, just in March, Starbucks started offering 12-18 weeks of paid leave to in-store workers growing their families.
That’s up to three times what the old policy allowed, noted Allison Whalen, CEO at Parently.
“It was really about what we heard from our partners about the paid leave that was being offered to them,” Sara Kelly, EVP and Chief Partner Officer at Starbucks, told Parently.
“What they shared is that more time with family was something that they were seeking. And that's been a theme that was made clear directly to our CEO. And it was this feedback in mind that the decision to expand our parental leave policy was really an easy one for us. And it was one that we took action on really quickly.”
The coffee giant had also previously announced financial wellness benefits for workers.
Why is offering parental benefits important for employers?
According to employee benefits consultancy KBI, paid parental leave delivers strategic advantages for employers, including:
- Enhanced retention - “The effect is not only financial but also cultural, solidifying a workforce that is engaged, motivated, and less likely to seek opportunities elsewhere.”
- Attraction of top talent - “By integrating paid parental leave into their offering, companies position themselves as forward-thinking and employee-centric.”
- Improved mental health and family well-being - “This benefit acts as a critical buffer, granting parents the invaluable opportunity to bond with their newborn or newly adopted children without the looming stress of imminent work duties or financial precarity.”
Here’s how Starbucks brewed up a wellbeing strategy – without breaking the bank.
