Volvo pays parents to stay home

Volvo has thrown down the proverbial gauntlet to car manufactures with the introduction of paid parental leave for workers.

Both men and women will receive 80 per cent pay for up to six months under the terms of the scheme, which also applies to same sex and parents of adopted children.

It applies to employees in the Europe, Middle East and Africa region (EMEA).

At this stage it is only a pilot project, but it could lead to the roll out of a similar scheme for Volvo’s 43,000 employees around the globe.

The new policy is inspired by national legislation in Volvo Cars’ home market of Sweden, famous around the globe for its generous parental leave arrangements, which have delivered tangible benefits for parents and children alike in recent decades.

“The EMEA initiative is one of several activities with the aim to create an inclusive culture and attract and retain a diverse set of people,” Head of People Experience, Hanna Fager, said.

“It improves life-work balance, boosts family time and fits with a progressive, human-centric company such as Volvo Cars.”

Most countries in the EMEA region offer some form of paid parental leave, but there is often a large gap between what is available for mothers and fathers.

Equal parental leave offers the potential to boost labour market and career opportunities for women by reducing career and pay gaps.

The new policy forms part of Volvo Cars’ ambitious people strategy, aimed at attracting and retaining the best people.

Volvo Cars aims to position itself as an employer of choice to both existing and future employees by offering one of the most generous and inclusive paid parental leave packages.

“We need to be a truly attractive employer to be able to deliver on our ambitious growth plans,” Fager said.