KPMG Survey: Workplace Friendships Play a Critical Role in Employee Mental Health, Job Satisfaction

NEW YORK, November 19, 2024- Fostering workplace friendship is critical to employees’ mental well-being and job satisfaction in today’s digitally driven work environment, according to a new study released by KPMG LLP (KPMG), the U.S. audit, tax and advisory firm.

The inaugural KPMG Friends at Work Survey explored the views of 1,000 full-time, professional employees to understand their attitudes and perspectives toward workplace friendships. The survey revealed key perspectives and differences across categories based on age, gender, race and work environment (hybrid, remote, in-office only).

"Genuine friendships between coworkers is the secret sauce to establishing a workplace culture that’s not only defined by collaboration and teamwork, but also by authentic engagement, a deep sense of care and respect, and, maybe most underappreciated – fun,” said Sandy Torchia, KPMG U.S. Vice Chair of Talent and Culture. “By finding new, creative ways to foster and support friendship at work, employers can create an environment where individuals feel valued, motivated and truly connected to the organization.”

The survey revealed key insights around the impact of friendship (and alternatively, loneliness) on both mental well-being and professional success; the barriers and opportunities for fostering connection in today’s technology-driven work environment; and the role of the employer and the manager in workplace engagement.

“It’s important for employers to recognize the challenges and limitations that professionals are facing in connecting with colleagues and establishing friendships, particularly as the role of technology in the workplace continues to grow,” said Torchia. “These challenges may look different for each person and be influenced by a variety of factors, including race, gender, economic background and work environment.”

Friendships at work enhance mental well-being and job satisfaction, but employees face a variety of challenges in connecting with colleagues and establishing friendships.

• Four out of five say work friends are highly important (81%), provide positive mental health benefits (78%) and have at least one work friend (79%). Hybrid workers place the highest value on workplace friendships; however, in-office professionals typically have more friends and a greater range of friends across generations and ethnicities.
• Most professionals feel work friendships help them feel more engaged (83%), satisfied on the job (81%) and connected to their workplaces (80%).
• Close friendships at work have the greatest positive impact on mental health (43%), when compared to other professional relationships. This is especially true for entry-level employees (63%), compared to mid-level (45%) and senior (40%) employees. For those without close work friendships, their group leader has the largest impact (43%).
• In terms of mental health benefits, work friends serve as a sounding board and source of empathy during challenging times (48%), enable greater resiliency (42%) and foster a stronger sense of personal connection and belonging (41%).
• Compared to other ethnicities, White professionals in hybrid or full-time office settings find it less difficult to establish close work friendships with remote colleagues, with more than half (56%) saying it’s “not difficult.” 46% of Black and 46% Hispanic professionals say that it’s “possible, but difficult.”
• More than half of professionals (54%) feel that their financial situation and/or the current economy prevents them from socializing with colleagues outside of work.
• Personal finances and the economy are limiting more Hispanic professionals (68%), women (61%) and White professionals (58%) from socializing outside of work. Fewer Black professionals (25%) say that their socializing outside of work has been limited by these factors. 

Employers who facilitate work friendships can attract and retain talent, particularly those more likely to feel isolated and alone.

• 84% of professionals believe that it’s important for companies to facilitate personal interactions that help develop work friendships. Similarly, 83% say that a company’s approach to promoting an environment and culture that supports work friendship is important when deciding whether to stay at their current job, and 81% say it’s important when considering a new job.
• The majority of professionals feel that their company believes work friendships improve employee happiness and job satisfaction (82%) as well as productivity (81%). However, 1 in 4 don’t feel that their company is highly focused on activities and events that lead to the development of close work friendships.
• Most professionals—especially Gen Z employees—believe that companies should facilitate work friendships through extracurricular, non-work-related activities like holiday parties and happy hours (40%). Employee Resource Groups (ERGs) focused on inclusion are also of interest (39%), particularly among more mid-level and senior employees. 
• In terms of professional benefits, employees credit work friends for introducing them to advancement opportunities both within their current company (41%) and outside of their current company (36%). This is especially true for older workers, particularly Gen X.
• A quarter of employees experience feelings of isolation and loneliness at least sometimes. Those without work friends (69%), or who feel having work friends is not important (53%), are much more likely to feel isolated or alone.
• Women (30%) are more likely than men (19%) to have feelings of loneliness at least some of the time at work – and White (27%) and Hispanic (24%) employees are more likely than Black (17%) employees. 

Fostering workplace friendship takes effort – and an over-reliance on technology is recognized as detrimental to building strong connections.

• Most employees (58%) feel that an over-reliance on digital channels, replacing the need for personal, face-to-face interactions, is a major barrier to developing strong workplace friendships.
• Other challenges include less causal interactions such as ‘water cooler chats’ or talking in the hallways (28%) as well as conflicts of interest such as concerns about perceptions of favoritism (26%).
• Virtually is the least common way to have met a workplace friend, with only 19% of entry-level employees saying they met this way. One third (30%) of remote workers feel their work setting makes it difficult to make friends – compared to 16% of hybrid or in-office workers.
• Most professionals identified a concerted effort to have regular catchups to discuss both work- and non-work-related topics (45%) as the most effective way to establish and grow a workplace friendship followed by personalizing communication (39%) and participating in work functions, events and activities not directly related to jobs (38%). Going into the office more often was cited as the least effective action taken (16%).
• Supporting colleagues’ personal goals like running a marathon or learning a new skill (34%) and celebrating special occasions like a colleague’s birthday or work anniversary (31%) are other effective ways to establish and grow workplace friendships, according to respondents. 

Managers are relied upon more for professional support than friendship – with those in hybrid environments citing the strongest relationships. 

• Although most employees feel that their manager regularly provides job-related support, fewer see their relationships with their manager as a friendship. While 62% say that their managers provide coaching and mentoring and 59% say that they take a genuine interest in advocating on their behalf, less than half (47%) feel that their managers take time to get to know them beyond regular work interactions.
• Those in hybrid environments versus remote environments report stronger personal and professional relationships with their manager – with more saying that their manager provides coaching and mentoring (65% vs. 54%), takes a genuine interest in advocating on their behalf (66% vs. 50%), and that their manager takes time to get to know them beyond regular work interactions (48% vs. 38%).

About KPMG LLP

KPMG LLP is the US firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 142 countries and territories and has more than 273,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.