Volvo Will Give All Employees 24 Weeks of Paid Parental Leave
Swedish automaker Volvo Cars will increase paid parental leave for salaried and hourly employees around the world as part of a new “Family Bond” program.
Volvo says the program is due to take effect on Thursday. You might note this as April Fools’ Day, but fortunately for Volvo employees, Family Bond is certainly not a prank.
Global Incentives: More reasons to buy and support Volvo
The program includes those who become parents through birth, adoption, and permanent foster care. It also includes surrogates, non-birth parents in same-sex couples, and does not discriminate by gender. To be eligible, employees must have been with the automaker for at least a year.
While taking advantage of the program, employees will receive 80 percent of their base pay to start, and can use the time at any point during the first three years of parenting a new child. Employees in the United States can also receive full pay during 19 of the 24 weeks as long as they are taken within the first 36 months of becoming a parent.
Before the new program takes effect, Volvo allows new parents to take six weeks of paid leave in the first year after having a child. That’s less than the 480 days of paid parental leave to which Swedish parents are entitled, but a lot more than the 0 days of paid parental leave granted to non-federal American employees.
Truck Driving: Top accessories for long-distance trips
According to Volvo CEO Hakan Samuelsson, the new paid parental leave policy will help Volvo acquire and retain important talent as it transitions into becoming an all-electric vehicle manufacturer. “It’s something we believe is setting a new standard in the business,” Samuelsson told 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.”
Though Volvo expects the new Family Bond program will likely cost the company somewhere in the “single-digit millions,” Samuelsson believes it will be worth it thanks to “better, diverse management and a strong brand,” adding that “it will be good for our reputation everywhere.”
It’s good that some companies understand that enabling employees to have a good work-life balance is a worthwhile investment and not merely an expense.
Kurt Verlin was born in France and lives in the United States. Throughout his life he was always told French was the language of romance, but it was English he fell in love with. He likes cats, music, cars, 30 Rock, Formula 1, and pretending to be a race car driver in simulators; but most of all, he just likes to write about it all. See more articles by Kurt.