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The Role of Workplace Friendships in Boosting Productivity and Retention

Recent trends have shown that workplace friendships are not just beneficial for employee morale but are also key to improving productivity and retention. According to a survey conducted by Express Employment Professionals-Harris Poll, nearly 97% of U.S. hiring managers believe that friendships in the workplace can lead to a range of positive outcomes, including improved employee morale (55%) and productivity (67%). These relationships can also help reduce employee burnout (40%) and turnover (44%). Furthermore, 89% of hiring managers agree that employees who have friendships at work are more likely to stay with their company.

Encouraging Friendships in the Workplace

To facilitate these meaningful connections, companies are taking various steps to encourage friendships among their employees. A significant 85% of employers believe it is easy for employees to form friendships at work, with many companies promoting lunch events (46%), team-building retreats (40%), and even mentorship programs (32%). This perception is validated by the fact that over 9 in 10 companies (87%) actively foster an environment for employees to connect.

Outside Work Interactions and the Shift in Employee Dynamics

While fostering friendships at work is essential, many companies also see the value in interactions outside the office. Over 95% of hiring managers report that employees engage in activities such as texting, in-person gatherings, and social media interactions. About 69% of companies actively encourage such interactions, believing it strengthens the overall company culture.

However, it’s important to note that not all employees are equally enthusiastic about these shifts. A 24% increase in employees feeling less excited about connecting in-person has been reported over the past few years, highlighting the need for a balanced approach.

The Impact of Friendships on Job Seekers

For job seekers, workplace friendships have become a significant factor when deciding whether to stay at a company or look for new opportunities. 76% of job seekers say they are more likely to remain with a company where they have formed friendships, and 65% have reported staying longer at a job due to friendships formed in the workplace. On the flip side, 36% of job seekers have left a job because they were unable to build friendships at work.

Interestingly, Gen Z job seekers are particularly concerned about forming connections, with 67% of them worried about the ability to create friendships at their next company, compared to just 43% of millennials and 25% of baby boomers.

Creating a Culture of Friendships

To retain and attract talent, companies are increasingly recognizing the importance of fostering friendships among employees. Many are offering dedicated programs such as lunch events, happy hours, and mentorship programs to help employees connect. According to Bill Stoller, CEO of Express Employment International, “In today’s dynamic work environment, fostering genuine friendships among employees is not just a nice-to-have, but a strategic imperative. These connections enhance morale, boost productivity, and significantly improve retention rates.”

By focusing on nurturing these personal relationships, companies are investing in their most valuable asset—their people.