Are workplace friendships worth more than a pay rise?
In the modern workplace, salary isn’t the only thing that matters. According to KPMG’s Friends at Work 2.0 study, employees are increasingly valuing meaningful human connections — often more than financial rewards. In 2025, close workplace friendships have become a form of social capital that shapes everything from productivity and retention to mental health and career satisfaction.
A Friendship Premium at Work
The study revealed a striking statistic: 57% of professionals would accept a salary 10% below market rate if it meant working alongside close friends, rather than taking a higher-paying role without those relationships. KPMG describes this as a 20% salary premium attached to workplace friendships. In other words, camaraderie and connection are powerful enough to compete with cash.
Why? Employees who have friends at work report higher motivation, greater collaboration, and a stronger sense of belonging. They are also more likely to stay with their employer and perform beyond expectations. For businesses, fostering friendship is not a “soft” initiative—it’s a measurable driver of engagement and loyalty.
Loneliness: The Hidden Workplace Epidemic
Yet even as employees place more value on connection, workplace loneliness has nearly doubled since 2024. Around 45% of professionals say they feel isolated or alone at least some of the time, with remote workers reporting the highest levels of disconnection. The problem is particularly acute in the technology, media, and telecommunications sectors, where remote and hybrid models dominate.
The data shows that men have experienced the sharpest increase in workplace isolation—up 29 points in a year—underscoring that loneliness transcends demographics and seniority. Despite more ways to communicate than ever, technology has not solved the human need for authentic connection.
The Paradox of Technology and Connection
KPMG’s survey highlights a paradox: while technology can connect us, it can also create false relationships. Nearly half of respondents believe that digital tools have replaced deep conversations with superficial interactions.
At the same time, emerging technologies are reshaping how people relate at work. An astonishing 99% of professionals say they would be interested in an AI chatbot that could act as a close friend or trusted companion at work. Even more encouragingly, 86% report that generative AI has increased the need for human collaboration, suggesting that as automation takes over repetitive tasks, people crave deeper interpersonal bonds.
This mix of tech-enabled collaboration and emotional isolation paints a complex picture of modern work. It suggests that organisations must balance efficiency with empathy — using technology to facilitate, not replace, genuine connection.
Money, Mental Health and Meaning
Financial pressures are another barrier to connection. Three out of four employees say their personal finances limit their ability to socialise with colleagues outside work, up from just over half the previous year. From coffee catch-ups to team dinners, rising costs are restricting the social glue that builds culture.
The stakes are high: nearly nine in ten employees say close work friendships are vital for their mental health. For remote employees, that figure rises to 93%. The message is clear — relationships are not a luxury, but a necessity for psychological resilience and wellbeing.
A New Imperative for Employers
The implications for employers are profound. Nine in ten employees say it’s very important for both current and future employers to foster friendship-enabling cultures. In fact, 91% report being encouraged by managers to build professional relationships that can help advance their careers.
According to KPMG, the most effective ways to promote such a culture include establishing regular in-person gatherings, team-building activities, and informal meet-ups. Even small gestures — like celebrating milestones or offering stipends for team lunches — can have a major impact on morale.
Interestingly, the survey found that the most beneficial forms of workplace friendships are those built around trust and accountability: mentors, confidants, and peers who encourage personal and professional growth. These relationships drive learning, resilience, and innovation — the hallmarks of thriving teams.
Redefining the Value of Work
For business students entering the workforce, KPMG’s findings carry an important lesson. The future of work isn’t just about pay scales, perks, or flexibility. It’s about belonging. Employees are rewriting what makes a job worthwhile, and close workplace friendships are at the heart of this shift.
Companies that prioritise relationship-building will not only attract talent but also retain it. Those that ignore it risk fostering disengagement, burnout, and turnover. As the workplace evolves alongside AI and hybrid models, friendship may prove to be the most human — and most valuable — advantage of all.
You can read the full KPMG report here.
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