Employees crave companionship a lot, in truth, survey outcomes printed Tuesday from audit, tax, and advisory agency KPMG present 57% would select a task with a wage 10% beneath market worth to work with buddies over a job with a wage 10% over market with out shut friendships.
This “friendship premium” successfully values office relationships at 20% of somebody’s wage, in line with KPMG.
In the meantime, 45% of individuals reported emotions of loneliness within the office, up practically double from KPMG’s Buddies at Work report from final yr. And 81% of employees contemplate having office relationships as “critically vital.”
This yr, KPMG surveyed 1,019 full-time workers in regards to the relative significance of wage, buddies at work, work-life stability, studying alternatives, firm tradition, and the way know-how shapes worker experiences.
KPMG’s determination to discover office friendships was pushed by the rising recognition that human connection is crucial to enterprise success, Sandy Torchia, KPMG U.S. vice chair of expertise and tradition, informed Fortune.
“Our [2024] survey revealed that office friendships are an undervalued answer for addressing points corresponding to loneliness, burnout and disengagement—challenges more and more evident in in the present day’s workforce,” she mentioned. “Our [2025] survey signifies that these points not solely persist however have gotten much more prevalent.”
The worth of friendships at work
Kelsey Szamet, a office lawyer with Encino, Calif.-based Kingsley Szamet Employment Legal professionals, informed Fortune it’s no surprise some workers would select decrease pay to work with buddies.
Based mostly on her work with shoppers, “a heat organizational tradition will typically rank larger for workers in comparison with easy financial pay,” Szamet mentioned. “Working in an environment of belief and friendship can result in better dedication and staying longer with one firm even when salaries should not on the stratospheric ranges for one’s experience.”
Erin Eatough, cofounder and chief science officer at advisory agency Fractional Insights, informed Fortune this development displays a bigger redefinition of worth at work.
“Persons are now not simply optimizing for earnings—they’re optimizing for which means, progress, and connection,” mentioned Eatough, who makes use of psychological science whereas consulting Fortune 500 leaders. She earned her Ph.D. in industrial-organizational psychology from the College of South Florida.
“We see this in our diagnostics,” she continued. “Employees are more and more looking for environments the place they really feel secure, linked, and revered. Friendship is commonly essentially the most human expression of a tradition that has gotten it proper.”
A current Fractional Insights survey additionally confirmed greater than 50% of workers really feel they must “continuously look out for themselves at work.”
“That sort of continual self-protection indicators a breakdown of belief and belonging and it erodes motivation and innovation over time,” Eatough added. “Office friendships can act as a buffer towards the loneliness epidemic.”
In the meantime, office friendships typically transcend superficial connections. Buddies can function help techniques at vital instances like when an worker faces discrimination, harassment, or retaliation Szamet mentioned.
Generational breakdown and AI friendships
KPMG’s survey outcomes discovered Gen Z values office friendships essentially the most out of all teams. Two-thirds of Gen Z would select a task with the friendship premium, adopted by 58% for child boomers, 57% of millennials, and 55% of Gen Xers.
Whereas friendships are priceless throughout all generations, youthful employees rely extra closely on work buddies to navigate psychological well being and burnout, Torchia mentioned. They’re additionally extra more likely to view their work buddies as “social connectors” and “confidants,” she added.
AI has additionally develop into a supply of companionship—for higher or for worse—for some employees. Whereas 99% of employees reported they’re all in favour of an AI chatbot that would develop into a good friend or trusted work companion, in line with KPMG, 49% mentioned the know-how creates false connections and replaces deep conversations with superficial interactions. Torchia calls this the “nice AI paradox.”
AI “can function a instrument to assist alleviate loneliness whereas additionally amplifying our starvation for genuine relationships,” she mentioned. “The organizations profitable are these leveraging rising know-how like AI to create extra significant human interactions, not fewer.”
Eatough mentioned the extra we automate, the extra valuable and highly effective human connections develop into.
“If we’re not cautious, we threat designing sterile, extractive workplaces in pursuit of effectivity,” she mentioned. However inserting people on the forefront of efficiency administration, communication, and rewards can “create environments the place each AI and genuine connection thrive aspect by aspect.”
