New employee retention tool has four legs and goes 'woof'

There are so many reasons to allow dogs in the workplace, from increasing production and morale to decreasing absences.

And while financial institutions have not traditionally offered such an employee benefit, there are plenty of banks and fintechs that are leading the way in the industry.

For example, JPMorgan Chase not only allows dogs into its branches, but it also hands out dog treats. Wells Fargo is another company with a great pet policy. In fact, Wells Fargo has a host of dogs that have been part of various offices throughout the years.

Other companies are going the extra mile, and providing dog parks on-site or dedicated walking areas for their four-legged colleagues. The online small-business lender Kabbage is well known for its laid-back work culture, including casual dress code, beer on tap and a dog-friendly policy.

Perhaps one of the most pet-friendly companies is Redtail Technology, which is named after the founder Brian McLaughlin’s dog. Not only does the company encourage people to bring their dogs to work, it also has a dog park, and a Slack channel for employees to message each other when they’re about to take their dog out for a play.

Read More: Pet friendly employee benefits can help with recruitment and retention

Still skeptical about this approach? Here are five scientifically backed reasons that allowing dogs into the office can benefit employees.

First, allowing people to bring their pet along with them to work actually helps to decrease stress for not just them, but everyone in the workspace. Washington State University found that petting a dog for just 10 minutes can help to reduce stress.

Playing with or petting a dog can increase the levels of oxytocin, a stress-reducing hormone; and decrease the levels of cortisol, a stress hormone.

A team of researchers at Virginia Commonwealth University carried out a study that compared three groups of employees: those who brought their dogs to work, those who had dogs but left them at home those who didn’t own a dog. The lead of the study, Randolph Barker, said that "the differences in perceived stress between days the dog was present and absent were significant. The employees as a whole had higher job satisfaction than industry norms."

Second, when staff bring their dog to work, they will need regular walks throughout the day, which will encourage people to be active. Being physically active not only gives people the satisfaction that naturally comes with exercise, but it will also increases productivity.

Each time someone exercises, new mitochondria produce more energy known as ATP. This gives people more energy physically and for the brain, which boosts mental output and productivity.

Third, workplaces that allow dogs into their offices usually find that employees are more cooperative with each other, and that they have better working relationships. Dogs increase morale and bring a more fun and positive outlook to office life, which encourages people to be friendlier to each other.

Dogs are a common interest between many different people from all walks of life, so having some common ground can help people to connect. Central Michigan University found that when a dog is in the room with a group of people, they are more likely to trust each other and collaborate together effectively.

Fourth, actively encouraging staff to bring their pet to work will foster a really good relationship between employer and employee. It will help to make employees feel valued and increase the likelihood they'll stay long term at the company.

The more satisfied people feel in their job role, the less likely they are to search for work elsewhere, making employee retention rates higher, according to one study.

Fifth, allowing staff to bring their pet to work increases their job satisfaction and reduces stress, which in turn will mean that they are less likely to become ill and need time off work. This can have an added effect on other employees in the business too. With the positive, stress-reducing nature that dogs bring to an office, people will be less likely to take time off.

With such benefits already working for some financial companies, hopefully others will start to catch up with these pet-friendly policies soon.