Retail coffee chain Starbucks recently announced that in 2025, it is upping its paid parental leave benefit, increasing the leave from six weeks to 18 weeks for birth parents and 12 weeks for non-birth parents.
This comes as more headlines about increased union activity at Starbucks and other employers could mean some organizations are strategizing for how to minimize interest in labor union activity. Experts say that strengthening benefits, given the increasing importance employees have placed on them, could be one avenue.
“Benefits are one of the most powerful tools employers have to address and recognize the diverse needs of their workforce while building deeper connections with employees,” says Danaya Wilson, co-founder and CEO of BetterCertify, a comprehensive environmental safety, compliance and professional training company. “While base compensation reflects the value of the job itself, benefits demonstrate an organization’s commitment to supporting the whole employee, both professionally and personally.”
Wilson notes that in today’s competitive labor market, benefits are a key differentiator for attracting and retaining top talent. In particular, personalized benefits strategies—such as Individualized Flexible Benefits (IFB) Plans—can help employers enhance their value proposition.
“These plans take into account total compensation—combining base pay with the value of elective benefits—and allow employees to select how their compensation is allocated, provided the total remains the same,” she says.
By allowing employees to tailor their total compensation, organizations not only provide greater choice but also foster a sense of ownership and alignment, which could be key to reducing the frustrations that may have some employees interested in union activity.
“These plans can address everything from childcare and parental leave to wellness programs, enabling employees to integrate their work and personal lives seamlessly,” Wilson says.
Parental leave may be a particular focus for many employers in the coming years. Alex Henry, group benefits leader at WTW, reports that WTW’s Leave, Disability and Time-off Trends Survey found that 84% of employers are planning to make changes to their leave programs over the next two years, citing “attraction and retention” as the No. 1 reason for change.
According to that survey, 25% of surveyed employers are looking to implement or enhance their paid parental leave offering. About one-quarter are also looking to establish or bolster paid bereavement leave, and about 20% are doing the same when it comes to paid caregiver leave.
Meanwhile, WTW’s Global Benefits Attitudes Survey found that employees ranked leave programs as the third most important benefit their employers offer (35%), right behind retirement (38%) and health benefits (52%).
This suggests leave programs could be an increasingly important topic at the bargaining table.
“Given the importance that employees place on leave benefits, it is now commonplace for unions to negotiate enhancements to company-sponsored leave benefits and paid time-off programs on behalf of their union members,” Henry says.
Benefits such as paid leave are no longer “nice-to-have”; instead, they are the ultimate bid for employees to align their lives and talents with a company. As such, Wilson says, they can be a powerful way for employers to cultivate loyalty, satisfaction and long-term growth within their teams.
“With labor movements gaining momentum, innovative benefits strategies can reduce discontent and signal that an organization truly values its people beyond just the work they do,” she concludes.
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