With unemployment rates hitting an all-time low, finding and retaining talent remains a top challenge for many organizations. Additionally, the financial impact of worker turnover is high, with the cost of replacing an employee estimated at 50% to 60% of a worker’s salary.
A leading reason many employees decide not to leave their employer is the quality of their benefits package. By offering unique voluntary perks, such as pet insurance as part of that package, employers can find new ways to attract and retain the talent they need for the business.
“Eighty-five percent of workers with employers that offered pet insurance view their company as having ‘great benefits,” says David Hurley, director of sales of voluntary benefits and member specialty groups at Nationwide. “Additionally, 84% describe their employer’s benefits as ‘competitive.’ However, only 15% of companies currently offer pet insurance, which is why it’s such a great way to stand out.”
With companies looking for new ways to engage with employees, offering pet insurance as a voluntary benefit helps employers connect to employees across generations and studies show this approach, in turn, helps improve engagement and worker retention.
Fueling retention and building generational bonds
Research shows that employees across all generations care deeply about their pets.
Gen Zers and millennials tend to view their pets as “starter children,” and baby boomers and older Gen Xers embrace animal companions as older children leave the nest. Offering pet insurance builds stronger bonds with employees by recognizing what’s important to them.
Pet insurance also contributes to more positive work experiences in several key areas, including retention. A survey found that 81% of respondents with access to pet insurance report that they plan to stay with their company for at least the next 12 months. Sixty-four percent of employees also responded that if offered another job at similar pay, they would decline it since they value the pet insurance benefits at their current employer.
“When offering pet insurance to employees, it’s important to recognize that not every pet has fur,” says Hurley. “An employee may have an avian exotic pet, or another companion that isn’t a cat or dog, so it’s helpful to have that level of coverage in the policies you offer.”
Boosting employee engagement
A staggering number of employees are “checking out” at the office, with only 36% reporting that they are actively engaged in the workplace. Pet insurance supports increased engagement by helping employees feel more supported in their personal and financial lives.
Seventy-six percent of employees with pet insurance report being fully engaged at work, and 71% would recommend their employer to others.
“Vet bills are often expensive and come as a surprise,” Hurley says. “Pet insurance helps employees avoid the financial stress of unexpected bills and feel more positive about their employers.”
At a time when standing out in the labor market is critical, offering simple enhancements to your benefits package, such as pet insurance, is an effective way to capture a competitive edge. And with younger generations making up an increasing portion of the workforce, offering high-value benefits to these workers helps employers connect across all generations while improving workers’ engagement.
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 How Pet Insurance Connects With Employees and Retains Talent.