When it comes to keeping employees engaged, many leaders focus on competitive pay, attractive benefits, or trendy perks. While these matter, there’s a quieter force that plays a surprisingly powerful role in retention and overall satisfaction: work friendships. 

According to HR Exchange Network, “Organizations that actively encourage friendships among colleagues gain a powerful retention advantage.” In fact, SHRM found that 76% of employees with close friends at work are significantly more likely to stay with their employer. 

Workplace friendships lead to better collaboration, higher morale, and deeper loyalty—but they don’t happen by accident. They grow from intentional cultures of trust, inclusion, and human connection. For HR leaders focused on building stronger organizations, encouraging friendship at work is more than a feel-good initiative—it’s a strategic move. 

 

What Can Organizations Do to Foster Friendship? 

Design spaces for connection.  

Whether your team is in-person, remote, or hybrid, prioritize moments for genuine connection. Set up common areas that encourage casual interaction, carve out time for virtual coffee chats, or start meetings with light, informal check-ins. Small conversations often lead to strong relationships. 

 

Celebrate achievements together.  

Recognition builds community. Celebrate everything from major milestones to small wins—birthdays, anniversaries, promotions, and project completions. Participate in recognition programs and awards that highlight both individual and team contributions.  Company-wide events, whether in-person or virtual, give employees the chance to connect outside of their daily routines. These celebrations foster a sense of belonging and remind everyone they’re part of something bigger. 

 

Encourage cross-functional collaboration.  

Relationships flourish when people get the chance to work with others outside their usual teams. Bring people together across departments through task forces, rotating leadership opportunities, and mentorship programs. Cross-functional teamwork not only sparks innovation—it also strengthens internal networks and helps new friendships form naturally. 

 

Gather honest feedback to guide your efforts.  

The Best Companies Group Best Employer Survey helps organizations uncover how connected employees truly feel. By measuring key areas like belonging, communication, and collaboration, the survey paints a clear picture of workplace relationships—revealing whether teams feel supported, how effectively they’re working together, and where there’s room to grow. With over 20 years of experience defining workplace excellence, these insights are essential for creating a culture where connection can thrive. 

 

Lead by example.  

When leadership models authentic connection—showing vulnerability, checking in with others, and encouraging teamwork—it sets the tone for the entire organization. Culture trickles down from the top. 

 

Work friendships might not appear in your benefits package, but they’re one of the most meaningful contributors to a positive employee experience. When employees feel connected to the people they work with, they’re more engaged, more motivated, and more likely to stay.