- Posted on: Wednesday March 31, 2021
The Swedish car maker is offering 24-week parental leave paid at 80% to parents, regardless of gender.
The Volvo Group will now offer full 24-week paid parental leave for parents of all sexes, in a move the automaker hopes will ultimately help increase the number of female senior executives and strengthen its reputation with of potential car buyers.
The group joins a growing number of companies offering joint benefits to both parents.
Volvo has so far offered six months paid leave to new mothers, but complies with national regulations for fathers.
A conclusive essay
Its new policy, which will take effect from April, will allow employees who have worked at the company for a year to take up to 24 weeks of parental leave paid at 80 percent.
The company has conducted a trial with European sales staff over the past two years and found equal participation of men and women.
Although such parental leave is common among Swedish companies, Volvo will extend the policy to its global workforce, including staff in the United States and China.
« You will never know how to measure how valuable it is, but these are often the really important things that you cannot directly measure. Said CEO Hakan Samuelsson, comparing the decision to the decision to install the first airbags in his cars.
« It will cost millions of dollars, but it’s the right thing to do, and we hope more will follow. “, did he declare.
A positive image of the company
According to him, Volvo, which had already made a shift in safety and sustainability, would also be positively impacted by this decision.
« When people hear Volvo is doing this I don’t think they’ll be surprised “Said Hakan Samuelsson, predicting that future buyers “Will choose brands more on their values than on their power ».
The move would also increase the number of female executives in the company, Hakan Samuelsson believes, in part by removing the stigma of extended maternity leave.
« We don’t want to see women overwhelmed when they have children. »
Currently, a third of Volvo’s senior management is female, but the company aims to increase that percentage to 50%.
« In the long run, our brand will be stronger because we have better leadership and [plus] diversified to make the right decisions », Added the leader.