Work Friendships Trump Pay for Some Staff

The recent KPMG Friends at Work 2.0 Survey, which builds off the company's inaugural report in 2024, shows that employees place huge value on workplace relationships. Four out of five employees said friendships at work are significant, and most reported that friendships boost engagement, satisfaction, and connection.

This year's survey features answers from 1,019 full-time employees. KPMG f0und that 57 percent of professionals would choose a role paying 10 percent below market if it came with close workplace friendships over a higher-paying job without them. According to the report, that represents a clear signal that culture can offset compensation in recruitment calculus.

The findings suggest that employers should design environments that foster friendships, ultimately benefiting the company and its employees.

"The future belongs to organizations that engineer conditions for humans to thrive at work," says Sandy Torchia, KPMG US vice chair of talent and culture, in a press release. "We're moving beyond hoping friendships happen organically to deliberately designing systematic opportunities for deep professional relationships. This can help unlock collective human potential."

Friendship-enabling design begins with intentional structures that promote repeated, meaningful interactions. Practical moves that KPMG's report suggests include establishing a central company location for in-person gatherings; creating smaller, regional office spaces for employees to assemble; and rewarding staff who encourage inclusion and collaboration.

The report also emphasizes that most people establish work friendships through company-related social activities, such as joining clubs or attending workshops. The more effective manner depends on whether staff work remotely or are in the office full time. For instance, the report states that the number 1 way in-person employees establish friendships is by attending or organizing social activities or by joining company-organized workshops, seminars, or events. For remote employees, the top way they establish friendships is by joining groups or clubs that align with shared interests. Hybrid employees most often establish friendships via attending or organizing social activities.

In addition to cultivating workplaces that encourage friendships, it's important for employers to measure the results of their initiatives. Work Institute's 2025 Retention Report suggests adding items related to friendship and belonging to pulse surveys, tracking participation in social learning cohorts, and correlating those signals with retention and internal mobility.