The cost of everything, including veterinarian care for pet owners, is skyrocketing these days. Consumer prices for vet health services shot up 8.5% between July 2021 and July 2022, and a recent survey found two-thirds of pet owners report inflation makes it harder to pay surprise pet bills.

Taking care of pets is expensive – a $999 pet bill can sink half of pet owners into debt –which makes pet insurance increasingly popular with owners. This is why companies that offer pet insurance as a voluntary benefit can capitalize on this trend as well as better connect with employees.

Since voluntary benefits don't have an upfront cost, it's easy and inexpensive to offer as part of a benefits package. More importantly, pet insurance is also a way to personally connect with pet-owning employees across the spectrum – from Baby Boomers to Gen X to Millennials and beyond. Organizations can also leverage pet insurance as a way to help with retaining and recruiting talent at a time when unemployment remains at historic lows.

"We've found that pet insurance is at the top of employees' wish lists, with 69% reporting pet insurance as an important benefit," says David Hurley, director of sales of voluntary benefits and member specialty groups at Nationwide. "And the importance of this benefit crosses all generations, from Gen Zers to Boomers."

Impact of pet ownership across the generations

A recent survey found that 36% of Gen X respondents had pets, second only to Millennials at 44%; Baby Boomers came in at 15%. While feelings and attitudes about pets vary across generations, one thing is consistent for all workers with pets: They value their animals highly.

A recent report finds:

Gen Zers and Millennials are waiting longer to start families. As a result, they view their pets as "starter children." They're also more likely to have brought a new pet into their homes during COVID-19.

Gen Xers and Baby Boomers are more likely to have adult children who have moved out, and pets help fill the empty-nest void and provide additional human and animal bonding and companionship.

With strong attachments to their pets, employees benefit from the emotional bonds and the stress reduction, studies show. Petting a dog, for example, lowers the stress hormone cortisol and increases the feel-good hormone oxytocin. And, of course, stress reduction and improved emotional well-being positively impact the workplace.

Boosting employee engagement, attraction and retention

Offering pet insurance supports employee well-being, but it also trickles down to the bottom line. Documented benefits include:

• More engaged employees: Employees working for a company with pet insurance have higher engagement rates (76%) than those at companies without this benefit (68%).
• Greater employee attraction: Employees with access to pet insurance are more likely to recommend their employer to others (71%) than are those at companies without the benefit (56%).
• Improved presenteeism: Employees with pet insurance are less likely to miss work for physical or mental health well-being and recuperation (76%) than are those without (74%). Additionally, those with pet insurance are more likely to say the amount of stress in their life is acceptable – 57% compared to just 44%.

"Our research finds that employees aren't just purchasing pet insurance; they are using it frequently – with an average of two claims per year," says Hurley. "And people are so passionate about their pets, which is why pet insurance engages them much more than other types of insurance – while being a huge asset to companies."

Data shows that companies that offer pet insurance as a voluntary benefit are better poised to connect with employees across generational divides. Pet insurance also provides an innovative way to attract and retain talent, which improves their competitive advantage in a tight marketplace.

Nicki Howell is a freelance writer with over a decade of experience writing about benefits, insurance, and technology trends.

Learn more at PetsVoluntaryBenefits.com • 855-874-4944.

To learn more about pet insurance, including how Nationwide can help your organizations, check out additional resources from this series including Nationwide on Leading the Benefits Pack: How Pet Insurance Attracts and Retains Top Talent.