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The value of workplace friendships is gaining new weight among American employees, with many saying they would give up a sizeable share of earnings for stronger connections at work.
A new KPMG report surveying 1,019 full-time professionals found that more than half would sacrifice 20% in salary to work alongside close friends. In fact, 57% said they would take a job paying 10% below market if it meant having meaningful friendships, rather than accept 10% above market without them.
At the same time, loneliness is rising sharply. Nearly half of respondents said they feel isolated at least some of the time, almost double the levels reported in 2024. Men were more likely than women to say they experienced isolation, with remote employees and those in telecommunications, media and technology reporting the highest rates.
“Working with friends or having a higher salary, of course the answer is ‘both’,” said Sandy Torchia, KPMG US Vice Chair of Talent and Culture. “This finding shows that as talent leaders navigate disruption from AI and economic uncertainty and create competitive compensation and benefits packages, we cannot miss the importance of fostering workplace friendships, which are critical for a healthy, engaged and productive workforce.”
Employees weigh friendships over pay
The survey revealed that close work friendships are now viewed as a form of workplace currency. Four in five professionals said work relationships are extremely or very important, with the share rising to 90% among Gen Z employees.
Respondents reported an average of 4.5 close friends at work, up from 2.3 in 2024. In-office staff reported the highest numbers, though even remote employees said friendships mattered to their mental health, with 93% rating them as important. Across all workers, 84% said such relationships were vital for wellbeing.
Benefits cited include higher productivity and motivation, improved collaboration and problem-solving, and increased resilience against burnout. More than one in four employees pointed to friendships as their biggest driver of performance beyond job requirements.
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AI and culture shape workplace ties
The role of technology also featured heavily in the findings. Almost all professionals expressed interest in using AI systems to help form connections, while 99% said they would consider an AI chatbot as a close companion at work. Yet 49% warned that technology often created superficial interactions, replacing deeper conversations.
Some 90% of professionals said they want companies to actively support friendship-building, both when considering a new role and when deciding whether to stay. Managers are also playing a part, with 91% of employees saying they had been encouraged to build work friendships to support career growth.
Employers who combine competitive pay with strong cultural support for friendships, work-life balance and learning opportunities could increase their attractiveness by up to 28 points above market averages, said the report.
