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

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Swedish automaker Volvo Cars and trucks is rising paid parental go away for employees globally to 24 months irrespective of gender, the corporation declared Tuesday.

Workers — both hourly and salaried — who have been with the automaker for at the very least a person 12 months are suitable for the new “Household Bond” system, the firm reported.

It covers all those who come to be parents via beginning, adoption, permanent foster care and surrogates. Non-birth moms and dads in same-sexual intercourse couples are qualified as perfectly. The plan normally takes result Thursday, Volvo reported.

Personnel will be paid out 80% of their foundation pay back by default under the program. They can use the time off from work all through the first three a long time of parenting a new child. U.S. workers also have the selection of 19 months of thoroughly compensated parental go away within 36 months of getting a parent, in accordance to Volvo.

The new coverage is meant to assist the business in talent acquisition and retention as it focuses on becoming an all-electric car producer by 2030, in accordance to Volvo CEO Hakan Samuelsson.

“It is some thing we imagine is location a new standard in the company,” he told CNBC. “We do this, not to introduce some sort of new favorable gain to our staff members, we do it far more simply because we believe it truly is fantastic for our business. We will be more appealing as an employer. There’s a competitiveness going on for expertise.”

Samuelsson explained the firm expects the new program to expense a “considerable sum” — likely in the “solitary-digit thousands and thousands.” He said as lengthy as “it gives us better, various administration and a more robust model, it will absolutely be worthy of it.”

What we do as a company is residing our values.

Hakan Samuelsson

CEO, Volvo

Volvo’s current application enables for 6 weeks of pay to be used in the first year of turning into a parent, in accordance to the corporation.

Volvo’s new parental go away method is among the most extensive in the automotive business. For instance, Normal Motors and Stellantis supply U.S. salaried workers up to 12 months of paid spouse and children depart for new dad and mom, while Ford Motor presents up to eight weeks. These are in addition to six to 8 months offered to birth mothers by way of the Family members and Healthcare Leave Act.

Volvo decided to start the new parental depart program next beneficial final results of a related pilot program for 1000’s of its gross sales employees in Europe, Samuelsson explained.

“What we do as a enterprise is dwelling our values,” he reported. “It will be superior for our standing everywhere you go.”