Starbucks Canada hopes expanded parental leave will boost retention

VP of partner resources Michael Watson says it’s not just the right thing to do—"it's smart strategy"

Starbucks Canada hopes expanded parental leave will boost retention

“Programs like paid parental leave aren’t just good HR—they’re smart strategy,” says Michael Watson, vice president of partner resources at Starbucks Canada. “They increase engagement, reduce turnover, build trust and make your company a better place to work.”

That’s the message he’s urging other employers to take seriously as expectations shift, and workers reevaluate what matters most. His recommendation: start by asking the right questions.

“Start by listening—really listening—to your people. Understand the stressors they’re facing, both at work and at home, then act with intention,” he says.

This advice follows Starbucks Canada’s roll out of a new update to its employee benefits, aimed at addressing growing concerns about family security and rising living costs.

From April 1, the company now tops up Employment Insurance to 100 percent for 12 weeks for all eligible store employees including part-time workers averaging 20 hours a week or more.

The initiative comes at a time when more than half of Canadian professionals (58%) say enhanced parental leave plays a significant factor in their loyalty to their employers, according to a Robert Walters survey. And it’s not an isolated perk; Starbucks Canada is positioning the move within a larger overhaul of partner support, tackling challenges tied to affordability and work-life balance. For Watson, the timing wasn’t just strategic—it was necessary.

“At Starbucks Canada, we believe that our partners (employees) are the heartbeat of our business, and we have always been dedicated to investing in the partner experience where they say they need it most,” he says. “Amid rising costs of living and growing concerns about affordability, particularly around family planning, we saw a responsibility to act. We listened to our partners and heard clearly how critical financial security is during parental leave. This investment is our way of showing up for them during one of life’s most significant transitions.”

Why Starbucks is doubling down on meaningful support

Starbucks Canada’s record on offering benefits to part-time workers—sometimes sidelined in corporate benefit plans—goes back decades, but this latest move raises the bar in an increasingly competitive benefits landscape.

“Our Parental Leave Top-Up benefit is a natural extension of our longstanding belief that supporting partners holistically—in and outside of work—is central to our success,” he says. “From health coverage for part-time workers to our Family Expansion Reimbursement program, we’ve consistently led with care. Parental leave top-up is another way we’re helping partners feel seen, supported and secure—not just at work, but in life.”

Removing the financial strain of family planning was a deliberate decision, one Starbucks expects will pay off in staff loyalty and peace of mind.

“We wanted to remove financial stress during what should be protected family time,” Watson says. “Topping up to 100% for up to 12 weeks ensures partners aren’t forced to choose between spending time with their new child and paying the bills. We expect this will foster greater peace of mind for partners.”

It also acts as a recruiting tool in a hiring environment where job seekers are looking beyond pay and evaluating whether an employer aligns with their values and goals, Watson says.

“By offering meaningful, inclusive benefits that support families of all kinds, we’re making it clear that Starbucks Canada is a place where people matter,” he says. “This gives us an opportunity to attract purpose-driven, people-first talent in a highly competitive market.”

But benefits only matter if people know how to use them, which a detail Starbucks is also trying to focus on. According to Watson, partners are introduced to their benefits from day one through onboarding training. This includes informational videos and resources designed to help them navigate their options early on and is followed up with regular checkpoints.

“Beyond the initial training, we hold time annually for leaders to connect with partners on available benefits and pay,” he says. “We invest in clear, multi-channel communication and ensure that store managers and leaders are equipped to guide partners through their benefit options. Our goal is to make sure no partner misses out due to a lack of information.”