Why Pet Insurance Is a Competitive Advantage

The workplace is in the middle of a generational shake-up, and HR leaders need to strategize benefits through a modern lens. Younger employees are drawing a clear line between how past generations built families and how they see theirs. For many, pets aren't just companions — they're family members factored into major life and career decisions.

When 95% of pet owners worldwide say their animals are part of the family,¹ it's hard to dismiss this as a passing fad. Employers can adapt or risk alienating the talent pool that will define the workforce for decades to come.

The data here is striking. Two-thirds of Americans aged 18 to 26 have chosen to get a dog instead of having a child.² As these younger cohorts move into mid-career roles, their pet-centric values will set new expectations for the workplace.

This shift is about far more than letting employees bring dogs into the office. It reflects a broader reordering of what "family" means. According to recent survey findings, 74% of young adults say dogs are more affordable than children, 80% say dog care feels easier to manage, and 72% say parenthood simply isn’t part of their plans.²

For HR, this shift cuts both ways. Traditional benefits may lose their luster for a sizable share of the workforce, while pet-related benefits — from insurance to leave policies — become more meaningful as candidate magnets.

The business cost of ignoring pets

The gap between what employees value and what companies provide shows up in hard numbers. A joint survey of HR teams we ran with the Human Animal Bond Research Institute found that 65% of HR professionals acknowledge the importance of pet benefits, but only 19% actually raise the issue with leadership.³ That silence creates real costs in three areas most executives already worry about.

First, there's a direct hit to employee satisfaction. Companies that offer pet insurance see job satisfaction rates jump to 84%, compared to 78% without it.³ In today's environment, where entire engagement strategies are built to move the needle by a single point or two, a six-point gain is a competitive edge few can afford to ignore.

Second, recruitment and retention become unnecessarily difficult. Pet policies are becoming table stakes for younger workers. 82% of HR leaders say they help attract and retain talent,³ and 90% of Gen Z pet owners say their dogs factor into career decisions.² If you don't offer these benefits, you're essentially self-selecting out of the next generation of talent.

Third, return-to-office initiatives face more resistance. Nearly 70% of dog owners prefer remote work to protect their pets' wellbeing.⁵ Americans are comfortable leaving their dogs for only 6.7 hours a day⁵ — less than a full workday plus commute. Mandating office time without offering flexibility or pet-friendly policies forces employees into a choice between their pets and their jobs. And more and more, they choose their pets.

A wellness and productivity advantage

Forward-looking companies are starting to see pet-friendly policies as more than just a recruiting perk. The wellness impact alone is hard to ignore. According to the AMA, nearly every pet owner reports a health benefit from their animals (98%), and 95% turn to them for stress relief.⁹ Pet owners visit doctors less often than non-owners, with estimates pegging the savings to the U.S. healthcare system at $22.7 billion annually.⁹

For employers, those same dynamics translate into fewer sick days, higher productivity, and lower healthcare costs. Our survey with HABRI found that HR leaders are catching on: 81% say pets improve employee mental health, and 68% see a clear boost in morale.³

Three out of four employees under 40 believe they'd be happier and more productive if they could bring their pets to work.⁹ That's more than a nice-to-have. It signals that pet-friendly policies help unlock the best performance from the very talent companies are trying hardest to keep.

Forward-looking companies are starting to see pet-friendly policies as more than just a recruiting perk. The wellness impact alone is hard to ignore. According to the AMA, nearly every pet owner reports a health benefit from their animals (98%), and 95% turn to them for stress relief⁹. Pet owners visit doctors less often than non-owners, with estimates pegging the savings to the U.S. healthcare system at $22.7 billion annually.⁹

The implementation strategies that work

The teams thriving at the edge of competitiveness are the ones that adapt with intention. For HR leaders, the starting point is simple: look at your benefits strategy through a pet-inclusion lens. That doesn't mean building an on-site dog park tomorrow. It can start with a few modest but meaningful steps — exploring pet insurance, creating flexible leave policies for pet care, or supporting remote and hybrid arrangements that acknowledge employees' responsibilities at home.

The lesson from early adopters is that these programs often pay for themselves through higher satisfaction, better retention, and the message that leadership understands employees' lives. In a tight labor market, that empathy is more than a cultural value. It's a competitive advantage.

Sources:

1. Human Animal Bond Research Institute (HABRI). (2022). "New Research Confirms the Strong Bond Between People and Pets is a Global Phenomenon, 95% Worldwide Say Pets Are Family." https://habri.org/pressroom/20220116
2. USA Today. (2024). "Survey: Nearly 40% of dog owners chose pets over parenthood." https://www.usatoday.com/money/blueprint/pet-insurance/pets-over-parenthood/
3. Human Animal Bond Research Institute (HABRI). (2024). "Survey of Human Resource Leaders Supporting Pet Families."
4. Forbes. (2024). "What We Can Expect From Gen Z In The Workforce In 2025." https://www.forbes.com/sites/christinecruzvergara/2024/12/23/what-we-can-expect-from-gen-z-in-the-workforce-in-2025/
5. CertaPet. (2021). "What Is Separation Anxiety For Dogs and Their Owners." https://www.certapet.com/separation-anxiety-in-dogs
6. Statista. (2025). "Share of pet ownership in the United States in 2024, by generation." https://www.statista.com/statistics/1130651/pet-ownership-by-generation-us
7. Business Insider. (2025). "Sit, stay, pine: The lonely pets being left behind by America's return-to-office push." https://www.businessinsider.com/pets-lonely-return-to-office-mandates-work-from-home-advice-2025-2
8. Purina. (2021). "U.S. Employees Eager To Help Pets Win A Permanent Spot In The Workplace." https://newscenter.purina.com/2021-07-20-U-S-Employees-Eager-To-Help-Pets-Win-A-Permanent-Spot-In-The-Workplace
9. American Heart Association. (2022). "New survey: 95% of pet parents rely on their pet for stress relief." https://newsroom.heart.org/news/new-survey-95-of-pet-parents-rely-on-their-pet-for-stress-relief