In 2020, more employers are offering pet insurance benefits than ever before, and it’s time for your company to get on board with this latest workplace trend.
According to a study from the Society for Human Resource Management, 9% of all organizations were offering pet health insurance benefits in 2016, which was a 5% increase from 2011.
Further, one in three Fortune 500 companies now offers a pet insurance benefit to their employees.
And a 2018 study from Willis Towers Watson found that 34% of all U.S. employees offer some sort of pet insurance benefit to their workers.
It’s clear from the data that pet insurance has become one of the hottest employee benefits around and you should start offering it to your employees for a couple of reasons.
People Love Their Pets & It Shows With Their Dollars
The first reason pet insurance should become a staple in your employee benefit package is that people love their pets and are willing to spend a tremendous amount of money on them.
LendEDU conducted a survey of 1,000 U.S. pet owners and found that the average pet owner spends $140 per month on their companion. Roughly 24% of that monthly expenditure goes towards veterinary care, something that is usually covered by any pet insurance policy.
The study from LendEDU also found 24% of pet owners have gone into debt due to health and veterinarian costs related to their pets. The average amount of debt incurred was a substantial $1,567.
When it comes to prioritizing pet expenses, LendEDU found that 11% of pet owners have delayed having children due to pet expenses, while 10% have missed bill payments, and 8% have delayed buying or renting a home.
And another 24% of pet owners admitted that they spend more on their pet’s health care than their own, while 22% thought the spending on each was about the same.
Amongst poll participants that had pet insurance, 77% said it has come in handy in the past and 88% believed it was worth it.
One thing is clear: American consumers are willing to break the bank for the pets they love, and by offering your employees a pet insurance benefit you can help them keep their financial obligation at a minimum, which will surely help you retain and attract the best talent.
People Also Love Employee Benefits
In addition to people’s financial commitment to the pets they love, another reason why pet insurance should be added to your employee benefits package is because employees love benefits!
A survey from Gallup revealed that one-third of all U.S. employees would quit their current job for a new one if the new one was offering more favorable benefits.
Another study, this one from Aflac, also found that 59% of employees would think about taking a job with lower pay, but great benefits.
If there’s one thing that employees might like more than their own pets, it’s their benefits packages.
Getting Ahead of the Competition
When you consider both the value that employees place on benefits packages and their massive budgets for their beloved pets, a pet insurance employee benefit is an excellent way to combine both of those things, keep your employees happy, and bring in the most desirable talent.
Additionally, while pet insurance is surely one of the trendiest employee benefits, it has yet to become a staple for the majority of companies. This means that by offering a pet insurance employee benefit now, you can place yourself ahead of the curve and at the front of the line for the best workers.
Through providing a pet insurance benefit to employees today, you can separate yourself from the competition by staying hip to the times, while helping employees budget for their pet expenses, and keeping them happy by offering benefits that mean something.
In his role at LendEDU, Mike Brown uses data, usually from surveys and publicly-available resources, to identify emerging personal finance trends and tell unique stories. Mike’s work, featured in major outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions.
CTA: LendEDU helps people compare and learn about student loans, personal loans, mortgages, home equity loans, credit cards, insurance, small business loans, and more. At LendEDU, our goal is to help consumers and business owners make educated decisions when it comes to financial products and strategies without having to do all the legwork themselves.