Paw-ternity Leave and Beyond: How Pet Benefits Are Winning Over the Modern Workforce

A decade ago, mentioning “paw-ternity leave” in a boardroom might have earned you a few blank stares and a good amount of confusion.

Today? It could just earn you top talent. Pet-related benefits have quietly clawed their way into the mainstream of employee perks, and they’re not just for dog-obsessed startups or millennial and Gen Z friendly ad agencies anymore.

From Amazon’s in-office dog parks to Kimpton’s pet bereavement leave benefits, countless Fortune 500s are realizing that a little empathy for furry family members goes a long way toward retention, morale, and brand warmth.

There’s been an incredibly fast-paced evolution in regards to employer recognition and provision of pet insurance.  While technically, these benefits were around (much more sparsely) since the 1980s, but for many years it was an obscure add-on, seen as more of a novelty than a necessity in competitive job markets and in the grand scheme of benefits packages aimed at recruiting talent.

Fast forward to today, and the numbers tell a much different story: by the end of 2024, more than 7 million pets were insured across North America, fueling an industry worth over $5 billion. According to SHRM’s 2025 survey, 22% of U.S. employers now offer pet insurance, a gigantic leap from a decade ago, if not even merely five years ago.

This shift isn’t about generosity it’s about demographics and modern expectations. Millennials and Gen Z, now the dominant segments of the workforce, are redefining what “family” means, not only in expectation for benefits packages but in cultural recognition.

Nearly 70% of Gen Z pet owners have more than one pet, and they’re twice as likely as previous generations to consider their animals as children. For much upcoming talent, finding an employer who “gets” that bond can be the deciding factor between staying or straying.

Pet perks have real bite for many reasons.  After a shift in fully remote work during COVID related lockdowns, many workforces have reinstated requiring at minimum hybrid remote/in-office participation, requiring what were just recently new, engaged hires to bring their whole selves to work, and sometimes that includes a few paw prints. Offering pet benefits signals empathy, inclusivity, and an understanding that family life looks different for everyone.

For younger workers, the appeal is deeply emotional: pet-friendly benefits say, “We see you.” But for employers, the business case is practical. Pet perks reduce stress, boost morale, and, most importantly, encourage return-to-office participation. Many pet parents dread leaving their animals alone all day; perks like dog-friendly offices or access to pet-sitting stipends make that transition far smoother.

The data surrounding this cultural shift only trends in favor of our furry friends.  Studies show that employees are increasingly willing to switch jobs, or even accept lower pay, for workplaces that support their pets. Pet benefits have become less about pampering and more about parity with traditional family benefits, as non-traditional as this emerging benefits market may seem.

Big companies have gone all-in. Amazon’s Seattle headquarters is home to thousands of dogs on any given day, with on-site parks, treat stations, and pet-friendly zones. Salesforce and Chewy offer robust insurance and pet-friendly policies, while Trupanion, as both pet insurer and employer, sets the bar by offering free coverage for at least one pet, in addition to dog-centric office amenities.

Furthermore, Kimpton Hotels, Mars, and Rover, who all provide pet bereavement leave, have institute benefits packages that reflect how losing a pet can hit just as hard as losing a family member. Even smaller employers are catching on: firms like athenahealth have paired voluntary pet insurance with “paw-ternity” time and modest stipends to great effect.

Pet perks are no longer a Silicon Valley quirk. They’re an expectation.

For employers skeptical about this shift, for financial or traditional expectation reasons, there is some good news: you don’t need a dog park or a corporate cat café to compete. The smartest strategies start small.

Employers can begin with voluntary pet insurance.  Many policies offer the lowest-cost, highest-impact option available, and they are often offered at zero employer premium. Employees appreciate the access, and HR gets instant brownie points for adding something new without touching the budget.

Additionally, layer in tele-vet memberships (think Airvet or Fuzzy). These services are surprisingly affordable per employee per month and deliver 24/7 peace of mind, especially for hybrid workers who have health concerns with longer-term four-legged members of their extended family.

There are other options that can be cost-affordable as well.  If your workplace culture supports it, try a “Bring Your Pet to Work” day or designated pet-friendly zones. Just remember to put some guardrails in place: require vaccinations, enforce leash policies, and ensure allergy accommodations. Nothing derails a good perk faster than chaos in the conference room.

And for a touch of heart? Consider a pet bereavement or adoption PTO policy. Even one or two flexible days per year can send a powerful message that compassion isn’t limited to human family matters.

Pet benefits do more than tug heartstrings they move the needle in regards to loyalty, company culture, and recruitment. These benefit options make companies look human in a landscape where automation and burnout dominate the headlines. They attract younger workers who prioritize well-being and emotional support over status symbols. And, with social media across all platforms dominating the landscape for even active students looking to the future as far as where and who they trust to take care of their family needs when they enter the workforce, these policies help differentiate smaller employers who can’t always compete on salary but can compete on culture.

From a branding standpoint, offering pet benefits says, “We care about your life outside these walls.” It’s a simple way to stand out in a labor market where authenticity sells. As one HR director recently quipped, “We don’t have a gym, but we have chew toys. And honestly, that’s winning us talent.”

Pet benefits aren’t just a fad, they’re the natural evolution of workplace empathy. Just as mental-health coverage and parental leave once went from “nice-to-have” to “must-have,” pet-friendly policies are on a similar trajectory.  A step from “perk” to “policy.”

The next wave will likely include standardized pet bereavement leave, expanded tele-vet access, and stipends for adoption or foster care, as employers look to build inclusive total rewards portfolios that reflect the diverse ways people form families.

The pet benefit revolution is here to stay, and it’s wagging its tail all the way to the C-suite.

Offering pet benefits isn’t about coddling the next generation of A-tier talent.   It’s about connection. As employees navigate hybrid schedules, mental strain, and an evolving sense of identity, the employers who recognize the emotional value of pets are the ones earning loyalty, not just attendance.

So go ahead and add a little bark to your benefits bite. Your employees, and their four-legged coworkers, will thank you for it.

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Dan Kinney

Director of Compliance

Kinney Law & Compliance

https://kinneylawandcompliance.com/

LinkedIn: https://www.linkedin.com/in/dan-kinney