Volvo triples amount of time off with new paid parental leave benefit

Volvo Cars is giving all 40,000 global employees paid parental leave of 24 weeks starting on April 1, 2021.

Paid parental leave isn’t a universal policy in the U.S. and is offered by just 27% of employers, according to the Society for Human Resource Management.

Volvo’s Family Bond policy applies to all employees regardless of age, gender, sexual orientation, marital status or whether they became a parent naturally or through adoption or permanent foster. The benefit will give all employees who have been with the company for at least a year a total of 24 weeks of leave at 80% of their pay. The policy applies to either parent and the leave can be taken anytime within the first three years of parenthood. Employee parents in the U.S. will also have the option of 19 weeks of fully paid parental leave to be used within 36 months of becoming a parent.

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“We launched the benefit to drive equality, diversity and inclusion within our workplace,” says Mikael Rampa, head of people experience for Volvo Cars Americas. “This policy reflects our core values and will help us retain and attract the best talent in the world.”

Previously, Volvo offered employees six weeks of paid leave for all parents at 100% of their pay. The new policy triples the amount of time available for employees to take off. Volvo decided to roll this benefit out to its global workforce following a successful pilot program run in Europe and national legislation in its home market of Sweden. Swedish parents receive 480 days of paid parental leave as part of a national policy, according to an NPR report.

“We learned that employees truly valued their parental leave time, but also were concerned about the potential impact on their teams or potential effect on their long-term career growth,” Rampa says. “There was also a cultural mindset about what is expected of fathers in the workplace and the home. We needed a way to make it clear that Volvo supports all parents taking their full leave time by building a culture that supports equal opportunity for parents to spend time with their child.”

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Employees are looking for more robust benefits that take care of the entire individual and their families. Indeed, 92% of employees say benefits are important to their job satisfaction, according to SHRM. Furthermore, 57% of employees say benefits and perks are a top consideration when accepting a job, according to Glassdoor.

“It is critical for us to ensure they feel fully supported by the organization and its leaders,” Rampa says. “When employees who are parents feel supported to balance work and life demands, it helps bring us one step closer to shrinking the gender gap and allows everyone to thrive in their careers.”