In a post-pandemic workplace where hybrid and remote models dominate, loneliness has quietly become the next major employee engagement challenge. According to new research from Reward Gateway | Edenred, nearly two in five U.S. employees (39%) say they often feel lonely at work — a startling statistic that suggests connection may be the most undervalued driver of job satisfaction today.
The survey, which polled 1,000 U.S. employees, found that 63% believe friendships at work are critical to job satisfaction. Yet 24% have considered leaving a job due to a lack of meaningful relationships. In other words, loneliness isn’t just a wellness issue—it’s a retention risk.
“Workplace loneliness is more than an individual challenge—it’s a business dilemma,” said Alexandra Powell, Director of Insights at Reward Gateway | Edenred. “When meaningful relationships are missing, engagement and retention suffer. Employers must create intentional opportunities for connection. Investing in workplace relationships isn’t just good for people—it’s good for business.”
Loneliness Hits Younger Workers Hardest
The research shows loneliness isn’t evenly distributed. Gen Z and Millennials report feeling the most isolated, with 49% of Millennials and 40% of Gen Z experiencing loneliness, compared to 35% of Gen X and just 15% of Baby Boomers/Silent Generation.
Gen Z also feels the emotional cost more deeply — 27% say lack of relationships hurts their motivation, compared to 15–16% of older cohorts.
Interestingly, men (20%) are more likely than women (12%) to say they’ve left a job over poor workplace relationships, challenging stereotypes about emotional openness at work.
The Participation Gap: Connection Isn’t Reaching Everyone
Despite an appetite for belonging, most workers aren’t finding it in company events. Only 47% of employees say they regularly join employer-sponsored social or team-building activities. Millennials are the most engaged (60%), followed by Gen Z (43%), Gen X (40%), and Boomers (33%).
That means more than half of the workforce is missing out on even the few structured opportunities to build relationships they’re given.
When it comes to psychological safety, the gap is also telling: just 56% of employees feel comfortable sharing personal challenges or successes with coworkers.
Why Connection Now Equals Retention
The data adds to a growing body of evidence linking connection, belonging, and retention. McKinsey, Gallup, and other workforce studies have all pointed to the same conclusion: employees who feel seen, supported, and connected are far more likely to stay and thrive.
In a labor market where culture and belonging often outweigh salary for younger workers, ignoring social connection is costly. Employers who view “team bonding” as fluff may be overlooking a proven business strategy for lower turnover, stronger engagement, and better performance.
Reward Gateway | Edenred’s Role: Turning Insights into Action
Reward Gateway | Edenred, best known for its Employee Experience Platform, offers organizations tools to build authentic connection through recognition, wellbeing, and communication programs. The platform helps leaders follow templated programs or design tailored engagement strategies — from recognition campaigns to wellness challenges — that foster everyday moments of appreciation and inclusion.
The goal? To make meaningful connection a measurable part of the employee experience — not just a “nice-to-have.”
As hybrid work continues to blur the boundaries between connection and isolation, the message from Reward Gateway | Edenred’s research is clear: loneliness is the new productivity killer, and investing in workplace relationships may be the smartest engagement strategy leaders can make in 2026 and beyond.
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