Unleashing Loyalty: How Pet Services Drive Employee Engagement and Retention
Published by
Arthur Motskobili
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As more employees bring pets into their homes, the demand for pet-related benefits is skyrocketing. According to our latest Benefits Summer Olympics Report, Pet Services have taken the top spot as the fastest-growing employee benefit, and it’s easy to see why. For many, pets are fully-fledged family members, and their care is an important concern. Rising pet care costs, emergency vet bills, and the need for reliable pet services create stress that can spill over into work.
Offering pet services, such as pet insurance, back up care for pets, or paid pet leave, shows employees that their employers recognize the full spectrum of their lives. This alleviates financial and emotional strain and enhances productivity.
Top of the Pack: Pet Services as the Hottest Employee Benefit
Pet services are on the rise, topping the charts in the BenefitPitch Summer Olympics report as the #1 benefit employees seek. It’s clear why: 41% of pet owners would even take a pay cut to work for a pet-friendly company. Offering benefits like pet insurance and wellness programs shows employees that their furry friends matter, while also helping attract top talent—especially among Millennials and Gen Z. In fact, 49% of Gen Z and 45% of Millennials say pet-related perks influence their job decisions.
What’s interesting is the growing diversity in how companies offer these benefits. It’s no longer about just pet insurance and monetary compensation. Forward-thinking companies are rolling out pet wellness programs, “Pawternity Leave,” and even pet-friendly offices. These perks aren’t just recruitment tools; they’re a reflection of workplace culture and values.
BenefitPitch’s own Fractional CMO, Kelsea Gust, shares her take on the retention value of these benefits:
“Having adopted multiple rescues over the years, I knew I would have to take my own type of “Pawternity Leave” via vacation days when we adopted our latest rescue puppy. A few vacation days to adjust to a fully-dependent living thing being added to our lives wasn’t nearly enough, and additional support from my employer would have gone a long way to helping with the transition. Our pets were absolutely a consideration in the decision to continue working from home, and ultimately my shift to the flexibility of being self-employed.”
The Different Types of Pet Benefits
When it comes to pet services, companies are getting creative, offering a variety of perks to address different pet-related needs. Here’s a breakdown of the most popular benefits:
Pet Insurance
With unexpected vet bills always around the corner, pet insurance is one of the most sought-after services. 42% of pet owners say they can’t cover a surprise vet bill under $999 without going into debt. Providing pet insurance shows employees that their pets’ health is as important as their own. This insurance often covers everything from routine check-ups to emergency surgeries, giving pet parents peace of mind.
Pet Wellness Programs
More than just insurance, companies are now offering pet wellness programs that include grooming, vaccinations, and wellness check-ups. These programs help maintain pets’ overall well-being and reduce unexpected vet visits. They also promote healthier, happier pets, which means less stress for their owners. For employees, this extra layer of support shows that their employer values both preventive care and long-term health for their beloved companions.
Pet-Friendly Offices
43% of Gen Z workers prefer pet-friendly offices, and companies are catching on. A new survey by OnePoll found that 41% of pet owners are even willing to take a pay cut just to work in a pet-friendly environment. Some companies go the extra mile by organizing “Bring Your Pet to Work Day” or providing pet-friendly spaces where employees’ dogs can play while their owners work. These initiatives not only boost employee satisfaction but also create a more relaxed and fun workplace environment.
Back Up Care
When unexpected situations arise, having back-up care for pets can be a lifesaver. Many employees face sudden work travel or family emergencies and need someone reliable to care for their pets. According to Care.com, a significant portion of their back-up care services are used for pets, reflecting the growing demand for this benefit.
Paid Pet Time Off (Pawternity Leave)
36% of Millennials appreciate paid pet time off, also known as “Pawternity Leave.” This benefit allows employees to take time off to care for new pets, attend to their pets’ health needs, or deal with the loss of a pet. It’s a clear sign that companies understand the emotional importance pets have in their employees’ lives. Pawternity leave can make a big difference for new pet owners who need extra time to bond with their pets or for employees facing pet emergencies.
Pet Bereavement Leave
Losing a pet can be as heartbreaking as losing a family member. Many companies now offer Pet Bereavement Leave, giving employees time to grieve and process the loss without the pressure of returning to work immediately. This benefit recognizes the deep emotional bonds people have with their pets and supports employees through tough times, reinforcing that their well-being is a priority.
The Financial and Emotional ROI of Pet Benefits
Pet services have become a strategic asset for companies looking to engage and retain top talent. In fact, 82% of HR professionals believe that offering pet-related perks improves recruitment and retention. But it goes beyond the basics—87% of HR professionals agree that providing pet insurance reflects an employer's genuine care for employee well-being, fostering a stronger sense of loyalty.
The demand for pet benefits is growing, particularly as Millennials and Gen Z increasingly dominate the workforce. These employees are not just looking for financial security—they want workplace benefits that align with their personal lives. With 41% of pet owners willing to take a pay cut to work in a pet-friendly environment, it’s clear that pet perks have a direct impact on employee satisfaction.
For businesses, the ROI is compelling. A recent study from the Human Animal Bond Research Institute (HABRI) reveals that for every dollar invested in pet-related benefits, companies see returns through reduced absenteeism, decreased turnover, and improved morale. The emotional benefits also play a critical role: interacting with pets has been shown to lower cortisol levels (the stress hormone) and reduce blood pressure. This means a more relaxed and focused team.
Supporting employees with pet benefits like insurance, wellness programs, and “Pawternity Leave” doesn’t just meet their needs—it shows that the employer values their whole lives, not just their work. Pet-friendly policies make your company more attractive to future hires, while creating a happier, more relaxed workplace culture. The result? Employees who feel supported are more engaged, and less likely to leave.
The Pet Ownership Surge: Why It Matters for Employers
The numbers don’t lie—pet ownership is booming. Over 90.5 million homes in the U.S. have at least one pet, and pet ownership has jumped from 73 million households in 2010 to 87 million in 2022. This growth has been especially noticeable since the pandemic, with 23 million Americans adopting a pet during COVID-19.
What does this mean for employers? As more employees take on the responsibility of caring for pets, their expectations for workplace benefits evolve. Employees are looking for companies that understand their personal lives, including the care of their furry companions. Whether it’s through pet insurance, wellness programs, or flexible schedules to accommodate pet care, businesses that adapt to this trend can build deeper connections with their workforce.
Moreover, the emotional bond between employees and their pets can directly affect productivity and focus. When pet owners feel supported in balancing work and pet care, they’re less likely to experience stress or distractions.
Action Step: Conduct an internal survey to understand how many of your employees are pet owners. Gauge interest in different pet-related benefits to tailor your offerings effectively.
Tailoring Pet Services to Employee Preferences
Employees are no longer looking for one-size-fits-all benefits. Just as with healthcare or retirement options, personalization is key to creating a benefits package that resonates with your workforce. Pet services are no exception. Different generations and employee demographics value different aspects of pet-related perks.
For example, Millennials and Gen Z tend to gravitate towards pet insurance and paid pet leave. Gen X employees may appreciate flexible work arrangements that allow them to take care of their pets during the workday. Offering a mix of services like pet insurance, wellness programs, and pet-friendly office policies ensures that you’re catering to a broad range of needs.
Personalization doesn’t stop with generational preferences. Employees may also have different needs based on their pet types. For instance, some employees may have dogs that require pet daycare or walking services, while others may have cats that need wellness checks. Tailoring your benefits to address these various needs can go a long way in showing that you understand and care about your employees’ lives outside of work.
Action Step: Create a tiered pet benefits package that allows employees to choose what fits their needs best. From basic pet insurance to more comprehensive wellness programs, offering choices can increase engagement and satisfaction.
Looking Ahead: The Future of Pet Services in Employee Benefits
As pet ownership continues to rise, the future of pet services as an employee benefit looks bright. We’re already seeing companies go beyond the basics of pet insurance and wellness programs to include innovative options like pet adoption assistance and even “pet bereavement leave.”
The growing trend of integrating pets into the workplace—whether through pet-friendly offices or “Bring Your Pet to Work Day”—is only expected to expand. Additionally, partnerships with local pet service providers, such as groomers, walkers, or trainers, may become a common offering as companies look for ways to enhance the employee experience.
Looking ahead, companies that stay on the cutting edge of these trends are likely to see improved employee loyalty, lower turnover rates, and a stronger culture of care. Pet services are evolving, and businesses that recognize this shift will be better positioned to attract and retain top talent in the future.
Action Step: Start building relationships with local pet service providers to offer exclusive discounts or services to your employees. It’s an easy way to expand your pet benefits without overhauling your entire benefits package.
Conclusion: Why Investing in Pet Services Is a Win-Win
Offering pet services as part of your benefits package isn’t just about keeping up with trends—it’s about fostering employee well-being, reducing stress, and ultimately driving retention. With rising pet ownership and employees increasingly valuing these services, adding pet-related benefits can set your organization apart.
By investing in pet services, you’re investing in your people. Ready to compare vendors and explore the best options? Head to BenefitPitch today to find the right pet benefits provider for your workforce.
Sources:
Summer Benefits Olympics Report
https://newsinhealth.nih.gov/2018/02/power-pets#:~:text=Possible%20Health%20Effects,hormone)%20and%20lower%20blood%20pressure.
https://www.forbes.com/advisor/pet-insurance/pet-adoption-statistics/
https://habri.org/pressroom/20240610