Pets are the new kids: How a generational shift is rewriting work culture

With millennials and Gen Z opting for fur babies over actual babies, a new workplace benefit is starting to take over. Enter the era of pawternity leave, where pets are dictating benefits, as companies scramble to keep up with shifting priorities. The reality is: without pet perks, companies are risking losing top talent. 

Sixty percent of pet parents say they would quit their job if it interfered with their ability to care for their pet and almost 10% already have. With the growing number of people placing such a high value on their pets, companies are beginning to recognize pet parenthood as more than just a lifestyle choice. It’s a reflection of today’s priorities, and it’s reshaping how employers approach workplace inclusion.

Younger generations are replacing kids with pets 

Generational differences are driving the need for modernized workplace benefits. Twenty years ago, two-thirds of women at age 30 had at least one child. Today, half of American women at that age do not. This comes as 67% of millennials and Gen Z say they would rather have a dog than a kid. 

As the workforce transitions from parents to pet owners, traditional benefits like paid parental leave are not resonating with newer generations in the same way more flexible, lifestyle-oriented perks like pet care do. 

According to a study from Vetster, 48% of Gen Z see no difference between their pet and an actual human child compared to past generations, a powerful indicator of how deeply pets are integrated into their emotional lives. These new family priorities present an opportunity for companies to recognize pet parenthood as a legitimate caregiving role. Offering benefits like pawternity leave, free or discounted pet health care, or pet-friendly office policies allows companies to meet employees where they are in today’s age. 

Supporting mental health through pet-inclusive policies

Amid economic uncertainty and looming layoffs within many industries, 80% of people cite work as their primary source of stress. Knowing that heightened stress negatively impacts productivity, companies are turning to pet-friendly policies as a part of their overall well-being strategy to ensure employees feel cared for. Pets such as dogs have been shown to lower blood pressure and reduce the risk of cardiovascular disease. Beyond physical health, their presence in the workplace also directly impacts employee’s mental well-being with 73% of people saying having pets in the office reduces stress levels. For remote workers, the impact is significant, too—51% of pet owners working from home report lower stress levels because of the ability to easily care for their pet. By recognizing the emotional needs of employees and integrating pets into workplace culture, companies are helping to alleviate stress while fostering a more compassionate and inclusive environment that supports employees. 

Companies are seeing high engagement with pet benefits 

Fifty-three percent of workplaces are pet-friendly to some degree and those that are implementing pet benefits are seeing high engagement with the benefits. For example, Samsung’s pet benefits program saved employees $20,000 on vet bills and over 800 hours that would have otherwise been lost to time spent on vet appointments. These types of programs not only reduce logistical and financial burdens for employees, but also demonstrate that the company values their employees’ needs beyond traditional healthcare. As a result, pet benefits are emerging as a meaningful component of inclusive workplace culture

A more inclusive workplace starts with recognizing pets as family

Seventy percent of the workforce are pet owners. Neglecting to acknowledge and support the role pets play in employees’ lives means overlooking a key part of what drives employees’ personal well-being. 

At its core, inclusion means creating a workplace where people feel seen and supported. As definitions of family evolve, so should benefits and policies. In recognizing pets not just as companions, but as central figures in many employees’ lives, companies who recognize this dynamic when considering benefits packages are experiencing a much happier, healthier company culture.