Volvo is set to give all employees 24 weeks of paid parental leave

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Swedish automaker Volvo Cars is growing paid parental leave for employees globally to 24 weeks regardless of gender, the corporate introduced Tuesday.

Employees — each hourly and salaried — who’ve been with the automaker for a minimum of one yr are eligible for the brand new “Family Bond” program, the corporate stated.

It covers those that grow to be dad and mom by means of beginning, adoption, everlasting foster care and surrogates. Non-birth dad and mom in same-sex {couples} are eligible as effectively. The program takes impact Thursday, Volvo stated.

Employees can be paid 80% of their base pay by default beneath this system. They can use the day off from work in the course of the first three years of parenting a brand new baby. U.S. employees even have the choice of 19 weeks of totally paid parental leave inside 36 months of turning into a father or mother, in accordance to Volvo.

The new coverage is meant to help the corporate in expertise acquisition and retention because it focuses on turning into an all-electric car producer by 2030, in accordance to Volvo CEO Hakan Samuelsson.

“It’s something we believe is setting a new standard in the business,” he advised CNBC. “We do this, not to introduce some kind of new favorable benefit to our employees, we do it more because we think it’s good for our company. We will be more attractive as an employer. There’s a competition going on for talent.”

Samuelsson stated the corporate expects the brand new program to value a “considerable sum” — seemingly within the “single-digit millions.” He stated so long as “it gives us better, diverse management and a stronger brand, it will definitely be worth it.”

What we do as an organization is residing our values.

Hakan Samuelsson

CEO, Volvo

Volvo’s present program permits for six weeks of pay to be used within the first yr of turning into a father or mother, in accordance to the corporate.

Volvo’s new parental leave program is among the many most complete within the automotive business. For instance, General Motors and Stellantis supply U.S. salaried employees up to 12 weeks of paid household leave for brand spanking new dad and mom, whereas Ford Motor gives up to eight weeks. Those are as well as to six to eight weeks out there to beginning moms by means of the Family and Medical Leave Act.

Volvo determined to launch the brand new parental leave program following constructive outcomes of the same pilot program for 1000’s of its gross sales employees in Europe, Samuelsson stated.

“What we do as a company is living our values,” he stated. “It will be good for our reputation everywhere.”

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