Starbucks recently made headlines for more than doubling its paid parental leave benefits for U.S. employees working 20+ hours per week.
Starting in March 2025, store partners will receive 12-18 weeks of paid leave - a major leap from the previous 6-week policy.
We spoke with Sara Kelly, EVP and Chief Partner Officer at Starbucks, who shared what drove this decision and why the company sees it as a business imperative.
Here are the top three takeaways:
This policy shift was a direct response to what employees wanted. Starbucks has long prioritized real-time employee feedback, gathering input through surveys, collaboration sessions and direct conversations between employees and executives. This increase was sparked by an email from a store manager who was expecting their first child and shared that the existing policy wasn’t adequate.
“It was really about what we heard from our partners about the paid leave that was being offered to them. 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.”
While some companies hesitate to expand parental leave, Starbucks sees it as a competitive advantage for retention and attracting workers in a tight labor market. Since announcing the new parental leave policy, Starbucks’ career site has seen a major spike in traffic, a strong indicator that job seekers are paying attention.
“Our career site saw a really significant increase in traffic from new users, which tells us that we reached new and potential candidates that maybe had not previously considered Starbucks and could now be interested. And so this is another indication that this is the right thing to do, not only for our current partners, but it's the right thing to do in the sense of attracting new talent into the organization that may not have been thinking about Starbucks previously.”
And it’s working. Starbucks is seeing some of the lowest turnover rates in its history, an achievement in an industry where high turnover is the norm.
“We've seen some of our lowest turnover rates in our history, certainly lowest turnover rates in the retail industry and some of the highest retention that we've seen since the pandemic. And so I do truly believe that we're experiencing all of this due to those comprehensive benefits and the supportive culture that actively promotes growth opportunities.”
Starbucks refers to its employees as “partners,” a term that reflects its deep commitment to employee well-being and shared success. That philosophy is baked into every major decision the company makes - including this one.
“We firmly believe that these actions make our business stronger because when our partners or employees feel like they have the opportunities to grow, both at Starbucks or beyond, they take care of each other and, in turn, they take care of our customers.”
Beyond paid leave, Starbucks has invested in tuition-free college programs, fertility benefits, and career advancement opportunities. These offerings are all part of a broader strategy to make Starbucks the best job in retail; and not just not a job, but it's a place where you can grow your career.
To celebrate all we’ve accomplished, our team shared what they’re most proud of since joining the team:
I'm most proud of how much we have done to improve the single hardest moment for women's careers (going on parental leave) ... one that is often shrouded in insecurity and fear. We've been able to help advocate for so many women (and men!) in a way that is empowering and truly life-changing.
What am I most proud of? Growth! Growing a category of support that didn't exist before Parentaly. Growing from a one-woman bootstrapped operation to a global team of 25+ employees and coaches. Growing our overall impact for working parents, with companies investing in our parental leave programming to support employees all over the world. And growing as humans: new babies, new friends, new life experiences... all while tackling new and exciting work challenges together.
When I reflect on what I am personally most proud of during my time here, it's working alongside a team where we constantly evolve and optimize everything that we do in order to deliver the best possible experience for the folks going through our programs. It sounds cheesy, but there are processes that my team and I used to do 100% manually that are now completely automated and systems in place that have become second nature to how we operate. Working with such thoughtful, smart, and creative people is incredible.
I’m most proud about doing work that makes parents feel confident and empowered about their careers during a time that can be overwhelming and challenging – not only for our clients and users who go through Parentaly’s programs, but also with our advocacy work on LinkedIn, through our podcast and other big campaigns that make a difference. It’s been pretty rewarding to build a brand people know and love because what we’re doing resonates with so many employees’ experiences in the workforce.
I am so proud of the way we've approached growth with such care and intentionality - with every adjustment we've made to our offerings, we've never lost sight of our goal to provide the most supportive and valuable experience for our users. I love looking back on the early stages of conversations and building that have led us to the experience we offer today. Personally, I am extremely proud of the work I've done to scale and automate our backend!
I am most proud of the work we do every single day to make a positive impact on working parents! Everyday I get to work with an amazing group of people…we work hard but we also have fun.
I'm proud of scaling an employee experience that consistently delivers positive outcomes for new parents and their organizations. Our north star has always been the user, and we never sacrifice our high quality bar!
I feel a sense of pride that I get to work behind the scenes supporting everyone. I’m proud to see all of the collaboration between the team and how Parentaly positively impacts employees.
I'm most proud of going through the Parentaly program myself! I'm so proud to work for and promote this company in a time where parental leave and supportive policies are at the forefront of a national conversation. But beyond this, I'm most proud to call myself a participant.
I’m really proud of the work I did to expand our coaching bench globally at Parentaly. It was so rewarding, not to mention insightful, to connect with talented coaches from around the globe. This expansion not only enriched our coaching offerings but also strengthened our commitment to making a meaningful impact on families all over the world.
I have tremendous pride in the knowledge that what I am doing will change the career landscape for new parents, particularly mothers. This will make it more likely that my daughter can have a career AND a family without worrying about the unintentional negative impact of taking parental leave. Nothing makes me prouder than that.
In my short time at Parentaly, I'm proudest of the work we're doing with our clients' ERG groups to elevate the stories and advice of actual working parents. It's such an impactful way to spread the word about Parentaly as an essential resource for all people growing their families, and the managers who support them!
I'm most proud about using LinkedIn to connect with others. I was recently able to share a helpful return to work doc with 50+ new people looking to make a difference at their company. Was pretty cool that people from Chewy, McDonald's, Honda, Cisco, AWS, Walmart and more want to integrate just a piece of what we have to offer. Also...I'm so proud of the way I feel as an employee at Parentaly. For the first time in my career my personal interests align with my professional interests and I've never felt more motivated.
I'm really proud of being able to help the Experience team by handling the supportive functions so they can focus on the bigger picture. It feels great to know that I’m making things easier for them and contributing to the team’s success.
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After becoming a first-time parent and truly unplugging for three months, I returned to work with big ideas and more ambition as I dove back into a VC-backed startup.
For as long as I can remember, I’ve been laser-focused on my career, from finance to startups. And then I got pregnant.
Monthly updates on our newest resources, podcast episodes and must-know news and stories related to parental leave.
