Unleashing pet benefits: A strategic move for corporate HR teams today

In the dynamic and rapidly changing employee benefits landscape, human resource (HR) professionals seek innovative, exciting ways to build total compensation solutions that attract and retain talent. With health care costs projected to rise by 7% in 2024, the challenge is daunting.

But even so, HR professionals must recognize that the needs of employees have radically changed over the last few years. Massive lifestyle shifts occurred during the pandemic, spikes in inflation and the threat of recession have loomed since. This is combined with 80% of people worrying about job security and financial inequality. Total compensation in this new paradigm needs a complete shift and acknowledgment that building a comprehensive solution goes far beyond health benefits and retirement planning.

One of the most dramatic shifts we see in the millennial generation is that fewer have or are having children. In fact, this generation is 3x more likely to have a pet. It may seem inconsequential on its surface, but this change is dramatically affecting your employees and how companies can approach their strategies this year.

Understandably, traditional family structures and ways of life are transforming, and this new era aligns with the growing demand for work-life balance. It taps into pets’ impact on employee wellbeing and satisfaction. In a highly competitive job market, where companies are vying for the best and brightest, building total compensation solutions that acknowledge this fundamental generational shift means offering pet-friendly benefits has emerged as not just a nice-to-have but a strategic differentiator.

The pet-friendly workplace advantage

Recent statistics reveal a compelling case for integrating pet-focused perks into broader benefits packages, with 60% of pet owners actively seeking jobs that include benefits for their beloved companions. Examining employment demographics, especially considering the more frequent job transitions of Generation Z and millennials compared to other age groups, contributes to a broader shift in consumer behavior.

To retain these demographics’ talent, HR should look to practical solutions to meet demand, adapting and enhancing benefits offerings without necessary increases in Health Savings Accounts (HSAs) or revisions to health benefits or insurance packages.

This talent retention is vital – in today’s fast-paced work environment, roughly one million U.S. employees miss work each day due to stress, with employee burnout being a critical concern for HR teams. This heightened stress has spurred a demand for innovative approaches to address the challenges of modern work life. Organizations increasingly recognize the need to create workplaces that acknowledge the pressures of the current professional landscape and actively contribute to employees’ wellbeing. Beyond being an individualized personal struggle, employee burnout unleashes cascading effects on a team’s overall performance, workplace morale and culture, health care costs, and retention, ultimately affecting the organization’s success.

Furthered by the pandemic pet boom, people across the U.S. are interested in having pets in their personal and professional lives. And for good reason – the connection between pets and employee productivity is significant, with 48% of pet owners claiming increased productivity when their pets are nearby.

An impressive 83% of pet parents who work for a pet-friendly company feel their work is rewarding and exciting, starkly contrasting the 46% who work in non-pet-friendly workplaces. Furthermore, 97% agree that a pet-friendly workplace directly links to greater job satisfaction.

What does this data tell us? When HR teams keep a holistic view of their employees and their families, which includes pets, at the forefront of benefit offerings, companies experience enhanced employee wellbeing, heightened productivity, increased retention, and further organizational success.

Pawsitively profitable

In today’s competitive job market, establishing a company as a best-in-class employer is even more difficult. By offering an inclusive compensation package, companies can differentiate themselves from competitors and demonstrate robust and holistic company values.

The financial implications of fostering a pet-friendly workplace extend far beyond the realm of emotional wellbeing for employees. With a substantial portion of the workforce being pet owners, acknowledging and accommodating their family’s needs can translate into concrete financial benefits for the business.

Companies that wholeheartedly embrace pet-friendly initiatives including flexible work schedules for regular dog-walks, offices built with pets in mind, and pet-inclusive policies witness a remarkable shift in employee behavior. A recent study shows that 91% of employees who work for a pet-friendly company feel engaged with their work compared to 65% who work in non-pet-friendly workplaces, and for many companies looking to cut down on recruiting costs while also trying to retain current employees, the same study shows that 88% of employees who work for a pet-friendly company plan to stay with the company for the following year.

This shift in workplace culture has profound implications for the company’s bottom line. By actively supporting employees in their dual role as pet parents, businesses create an environment that fosters loyalty, job satisfaction, and overall wellbeing. Reducing recruiting costs and increasing employee satisfaction alleviate the financial strain of employees leaving due to workplace dissatisfaction and contribute to sustained productivity and operational efficiency.

Pet-friendly policies nurture positive workplace culture

A shift to total compensation and financial benefits is essential for HR teams looking to enhance employee experiences. By reframing pet-focused benefits into HR’s broader context of total compensation, companies can save employees valuable time, improve company cost optimization, and make tangible impacts on workplace culture.

At a time when nurturing a strong company culture is paramount amidst a competitive talent market, it is imperative that HR teams address the evolving needs and preferences of modern employees. By seamlessly integrating pet benefits into total compensation packages, companies drive a cost-effective solution that uniquely meets employee sentiment today and is a key differentiator in recruiting and retaining talent.

Related: Why offering pet insurance to employees is gaining prominence

As HR teams navigate the complexities of total benefits packages in the modern workplace, they should implement strategic partnerships that enhance and optimize their total benefits packages. Customizing to include pet telehealth, flexible work arrangements, and pet-friendly office spaces has a multifaceted effect: heightened employee engagement and productivity, retention of top-tier talent, optimized recruiting costs, and a further solidified positive workplace culture.

Today, communication, education, and activation are crucial. HR teams can proactively partner with companies offering corporate pet benefits, educate employees on the offerings available, and foster a deeper understanding of how these perks contribute to overall job satisfaction and work-life balance.

Recognizing the diverse needs of employees, HR teams should strive to create inclusive policies that accommodate different lifestyles. Whether it’s dogs, cats, or other companion animals, ensuring a broad spectrum of pet-friendly options is critical to maximizing the impact of these benefits.

Cerys Goodall, Chief Operating Officer, Vetster