Volvo's latest export: paid parental leave to help female executives
Volvo Cars will be offering all its employees worldwide 24 weeks of paid parental leave in a bid to support female executives and equal parenting.
The carmaker, which is located in Sweden but is owned by China’s Geely Holding, has nearly 40,000 employees. From the upcoming month, all staff who had worked in Volvo plants and offices for a minimum of a year will be permitted to leave each time they have a child and will be getting 80% of their base pay at that time of period, the company had announced this on Tuesday.
Sweden is one among few countries that so far offers leave by law for either parent.
Few countries do not wish to offer any kind of paid leave to new parents or remove certain groups of parents, the latter is particularly true for fathers, the company stated in a statement, that adapted to local regulations and earlier did not have a global policy.
Nearly a third of Volvo’s senior managers are currently female.
The company targets raise that share up to 50%, a spokeswoman had addressed this by adding that Volvo’s new policy will better the conditions for staff on parental leave not least in China and the United States.
Hakan Samuelsson who is Volvo Cars CEO announced that when parents are supported to handle the demands of work as well as family, it helps to diminish the gender gap and permits everyone to excel in their own careers.
The global policy is applicable to either parent and at any time the leave can be taken within the first three years of parenthood.
In Sweden, new parents are in general entitled by law to around a year of parental leave on up to 80% pay.