Are Workplace Friendships the Secret Ingredient to Employee Retention?

Employe Attrition – or rather worsening Employee Retention – is top of mind for most businesses. Over the last 2 to 3 years there definitely seems to have been an increase in employee mobility, whether through a post pandemic reaction to our relationship with work, or because the workforce feel they now have more agency in choosing when, where and how they work….and who for and with.

Award winning and best selling author Michael Arena has done some research into this, sparked by Gallup research that indicated 51% of the US workforce were either actively – or keeping a watch – looking for new roles. The three reasons that consistently surface for job mobility are poor pay and rewards, lack of career growth opportunities, and the need to find more flexible working arrangements.

However what if there was another reason, not often talked about? Less expensive and more human?

One of my main research areas recently has been the concept of keeping Humanity in an AI world. Or rather, putting the Humanity into Human Resources in an AI driven world. Research increasingly indicates that workplace friendships can play a pivotal role in employee retention. Employees who have strong social connections with colleagues are significantly more likely to stay, creating a unique opportunity for HR professionals to reimagine retention strategies.

So how can businesses harness the power of workplace friendships to build – and retain – a more connected, engaged, and loyal workforce?

There are four areas that need attention.

Creating Opportunities for Employees to Connect

To develop the relationships that will lead to a settled and productive workforce we need to start by looking at the opportunities for interaction and support. Certainly in-person and virtual meet up sessions can be very useful for this – whether it’s interest or hobby based meet-ups, or collaborative projects based on current work priorities.

Employee led interest groups are a great way to develop this. Many years ago, when social media was a relatively new concept, I started a weekly lunchtime get together at the business I was with for colleagues interested to find out more about social media channels, how to use them for friends, family or personal interest, and how to build connections.

It was a loose arrangement – so there was no compulsion to attend – but it certainly helped people within the business connect, especially if they worked in different areas.

Look For Collaborative Project Opportunities

Again, these can be work related or personal interest based, but getting collaboration between colleagues who work in different areas, and rarely get the opportunity work together, can lead to a settled and harmonious culture within the business. It also gives colleagues who don’t work in the same area a chance to understand the full range of skills, knowledge and perspectives from people around the business. Any project can be work related, environment related, or mutual upskilling or knowledge sharing.

Strengthening Workplace Connections

Organisational network analysis can help to evaluate workplace relationships – strong and weak – and, most importantly, can identify anyone at risk of being isolated or disassociated from the organisation culturally. Employee surveys can often help with this, and any measure of group participation in activities that help engagement.

Fostering an Inclusive Culture of Belonging

Creating a sense of belonging is essential. One way to help promote this is through Employee Resource Groups, particularly those that support colleagues in areas such as DEI & B. These can provide spaces for individuals with similar backgrounds or interests to connect.

Getting leadership support – and sponsorship – is usually crucial to building successful ERGs to show that leaders are taking issues seriously and are making sure that their people get the support they need. These programmes should be designed to be open to everyone within the organisation, accommodating all neurotypes and physical abilities.

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