The friendship premium: A majority of people would trade 20% in salary to work with close friends, KPMG survey finds

• Despite a widespread return-to-office push, loneliness among workers remains high. KPMG survey results published Tuesday found that 81% of employees value friendships at work as “critically important,” and a majority would even prefer to earn less to work with friends than earn more without them.

While a massive return-to-office push promised to make collaboration and relationship building easier and more accessible, most workers still feel lonely at work. That’s largely due to technology use and a lack of support for employees, research shows.

Workers crave companionship so much, in fact, survey results published Tuesday from audit, tax, and advisory firm KPMG show 57% would choose a role with a salary 10% below market value to work with friends over a job with a salary 10% over market without close friendships.

This “friendship premium” effectively values workplace relationships at 20% of someone’s salary, according to KPMG.

Meanwhile, 45% of people reported feelings of loneliness in the workplace, up nearly double from KPMG’s Friends at Work report from last year. And 81% of workers consider having workplace relationships as “critically important.”

This year, KPMG surveyed 1,019 full-time employees about the relative importance of salary, friends at work, work-life balance, learning opportunities, company culture, and how technology shapes employee experiences.

KPMG’s decision to explore workplace friendships was driven by the growing recognition that human connection is essential to business success, Sandy Torchia, KPMG U.S. vice chair of talent and culture, told Fortune.

“Our [2024] survey revealed that workplace friendships are an undervalued solution for addressing issues such as loneliness, burnout and disengagement—challenges increasingly evident in today’s workforce,” she said. “Our [2025] survey indicates that these issues not only persist but are becoming even more prevalent.”

The value of friendships at work

Kelsey Szamet, a workplace attorney with Encino, Calif.-based Kingsley Szamet Employment Lawyers, told Fortune it’s no wonder some employees would choose lower pay to work with friends.

Based on her work with clients, “a warm organizational culture will often rank higher for employees compared to simple monetary pay,” Szamet said. “Working in an atmosphere of trust and friendship can lead to greater commitment and staying longer with one company even if salaries are not at the stratospheric levels for one’s expertise.”

Erin Eatough, cofounder and chief science officer at advisory firm Fractional Insights, told Fortune this trend reflects a larger redefinition of value at work.

“People are no longer just optimizing for income—they’re optimizing for meaning, growth, and connection,” said Eatough, who uses psychological science while consulting Fortune 500 leaders. She earned her Ph.D. in industrial-organizational psychology from the University of South Florida. 

“We see this in our diagnostics,” she continued. “Workers are increasingly seeking environments where they feel safe, connected, and respected. Friendship is often the most human expression of a culture that has gotten it right.”

A recent Fractional Insights survey also showed more than 50% of employees feel they have to “constantly look out for themselves at work.”

“That kind of chronic self-protection signals a breakdown of trust and belonging and it erodes motivation and innovation over time,” Eatough added. “Workplace friendships can act as a buffer against the loneliness epidemic.”

Meanwhile, workplace friendships often go beyond superficial connections. Friends can serve as support systems at important times like when an employee faces discrimination, harassment, or retaliation Szamet said. 

Generational breakdown and AI friendships

KPMG’s survey results found Gen Z values workplace friendships the most out of all groups. Two-thirds of Gen Z would choose a role with the friendship premium, followed by 58% for baby boomers, 57% of millennials, and 55% of Gen Xers.

While friendships are valuable across all generations, younger workers rely more heavily on work friends to navigate mental health and burnout, Torchia said. They’re also more likely to view their work friends as “social connectors” and “confidants,” she added. 

AI has also become a source of companionship—for better or for worse—for some workers. While 99% of workers reported they’re interested in an AI chatbot that could become a friend or trusted work companion, according to KPMG, 49% said the technology creates false connections and replaces deep conversations with superficial interactions. Torchia calls this the “great AI paradox.”

AI “can serve as a tool to help alleviate loneliness while also amplifying our hunger for authentic relationships,” she said. “The organizations winning are those leveraging emerging technology like AI to create more meaningful human interactions, not fewer.”

Eatough said the more we automate, the more precious and powerful human connections become.

“If we’re not careful, we risk designing sterile, extractive workplaces in pursuit of efficiency,” she said. But placing humans at the forefront of performance management, communication, and rewards can “create environments where both AI and authentic connection thrive side by side.”

This story was originally featured on Fortune.com