Volvo Cars have unveiled a paid gender-neutral leave policy for all its sales company employees in the EMEA region, offering mothers and fathers a total of six months of leave with 80 per cent pay.
The Swedish car maker believes that the policy is more generous and inclusive than most existing national parental leave policies in Europe, and is the first of its kind in the car industry.
The EMEA parental leave policy is a pilot scheme that might lead to a global roll-out of a similar paid parental leave policy for all 43,000 Volvo Cars employees. The EMEA initiative aims to identify and solve any practical obstacles that follow from rolling out such a scheme outside Sweden, where generous parental leave arrangements are the norm.
“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,” said Hanna Fager, Head of People Experience (HR). “It improves life-work balance, boosts family time and fits with a progressive, human-centric company such as Volvo Cars.”
The car manufacturer believes that although many EMEA countries offer some form of paid parental leave, there is often a large discrepancy between what is available for mothers and fathers. Moreover, it argues that equal parental leave can potentially boost labour market and career opportunities for women by reducing career and pay gaps.
Volvo Cars’ policy is gender-neutral and also applicable to same-sex parents and parents of adopted children. It forms part of the company’s people strategy that aims to attract and retain the best talent.
“We need to be a truly attractive employer to be able to deliver on our ambitious growth plans,” said Fager. “Attracting and retaining the best people is crucial, and we know that skilled talents will be more selective in their choice of employer. The winners in this battle for talent will be companies that value diversity, modern and flexible working practices, and employee wellbeing.”
