Susan Morgan Bailey
SVP, Culture Consulting Leader
Of the nine major trends for 2025 identified by research firm Gartner, six centered on technology, with a focus on artificial intelligence. The other three trends addressed employee loneliness and communication challenges.
“Loneliness” might initially sound like it shouldn’t be a business problem. It might even prompt comments like “If you’re lonely, get a friend. Or adopt a dog.” But it’s not simply an “emotional” issue.
Loneliness is costing you money.
According to Project Connect, loneliness among U.S. employees costs companies more than $154 billion each year.¹ The same report estimates that loneliness results in about $4,200 in lost workdays per employee annually.¹
The Harvard Business Review reports that employees are 3.5 times more likely to reach their full potential when they feel connected.
The 2025 Randstad Workmonitor report found that 8 in 10 employees believe a sense of community helps them perform better at work. The report also noted that 55% would consider quitting if they didn’t feel a sense of belonging, up from 37% the previous year. Additionally, 62% of employees hide aspects of themselves at work, which can make it harder to build a genuine sense of community.
So, how does an emotional response like loneliness lead to financial loss?
- Increased healthcare costs, including stress-related illnesses
- Higher absenteeism
- Reduced productivity
- Increased turnover
- Employee disengagement
Loneliness can significantly impact employee performance, which may, in turn, affect your organization’s bottom line.
Understanding reactions to loneliness
Different generations respond to loneliness in various ways. For example, Millennials (Gen Y) and Gen Z are often connected digitally but report higher levels of loneliness. Meanwhile, Gen X and Baby Boomers tend to experience more severe mental health issues related to loneliness, such as increased anxiety and depression.³
Lower-income adults are more likely to experience loneliness than those with higher incomes. They often have less mobility and fewer resources, and their daily focus is usually on commuting, caring for children, and making ends meet.⁴
Caregivers are also more likely to feel lonely, partly because they’re often sandwiched between caring for children and older or disabled family members. About two-thirds of caregivers identify as lonely, and those under 45 tend to experience higher emotional stress than older caregivers.³
Why awareness matters
If a problem isn’t recognized, it’s hard to address. In many organizations across the U.S., loneliness isn’t seen as a priority. Some people have heard of loneliness, but don’t realize how widespread it is or how much it can impact their business.
Even employees experiencing loneliness may not fully understand how serious it is. They might think it’s not a big enough concern or assume their company will help. It’s important to let employees know their feelings are valid. That’s a key step in developing strategies to foster connections and reduce loneliness.
Why addressing loneliness matters
Promoting “belonging” might seem like a simple, feel-good gesture. But it’s more than that.
Besides the financial costs, loneliness—the lack of a sense of belonging—can lower productivity, hold back creativity and innovation, and cause key employees to look for connections elsewhere, which can lead to turnover.
Loneliness can also reduce engagement, leading to less focus, weaker collaboration, and employees not reaching their full potential. All of these issues can hurt your business.
- 50% of U.S. adults report experiencing loneliness.²
- 32% of those experiencing loneliness have an increased risk of strokes.²
- 27% face a higher risk of premature death.² A lack of social connection that leads to loneliness can increase health risks as much as smoking up to 15 cigarettes a day.²
Building social connections among employees helps foster a sense of belonging, which is a key step toward keeping valuable talent.
What is belonging, and how do you promote it?
Employees who feel connected to others at work tend to be more engaged. They take pride in their work, their colleagues’ achievements, and the company’s success.
A sense of belonging encourages mutual respect, helps employees accept feedback, and makes recognition more meaningful.
How can you help create connections?
Eliminating loneliness by fostering connections starts with three basic building blocks:
- Structure: The number and diversity of relationships among employees, and how often they interact
- Function: How much employees can rely on others for emotional support, relationship needs, and work help
- Quality: Making sure relationships and interactions are positive, helpful, and satisfying
To promote social connections effectively, start by assessing your current situation—identify your strengths, weaknesses, opportunities, and challenges.
With that understanding, you can work on strengthening your culture. This includes:
- Raising awareness of loneliness by educating employees and offering assessments to help them understand their communication, work, and connection styles
- Promoting support networks through resources like employee resource groups (see below) or by establishing rituals that foster connection
- Creating a work environment that values social connection and belonging by making it a strategic priority and offering activities like team-building workshops
Building community through Employee Resource Groups
Creating Employee Resource Groups can help bridge gaps and bring people together by:
- Building a sense of community and belonging
- Increasing employee engagement
- Adding fun to work
- Supporting personal growth
- Offering professional development opportunities
- Amplifying employees’ voices and encouraging diverse perspectives
- Supporting retention
How we can help
At Marsh McLennan Agency (MMA), we have experience helping organizations rethink and improve their culture. Our MMA Consulting Practice offers a range of tools and assessments to support your efforts:
- Baseline culture assessment with CultureTalk™ Archetypes
- Employee value proposition review and design
- Inclusion and Belonging Organizational Assessment
- Team-building and inclusion workshops
- Well-being strategy support
- Inclusive climate survey
- Establishment of Employee Resource Groups
- Employee experience mapping
- Leadership, team-building, and inclusion workshops
- Inclusive benefits analysis
- Strategy consulting and implementation support
To learn more, contact your MMA representative today.
¹ Bowers A, Wu J, Lustig S, Nemecek D. Loneliness influences avoidable absenteeism and turnover intention reported by adult workers in the United States. Journal of Organizational Effectiveness: People and Performance. 2022; 9(2):312-335.
² Our Epidemic of Loneliness and Isolation: The U.S. Surgeon General’s Advisory on the Healing Effects of Social Connection and Community, 2023
³ The Cigna Group: The Hidden Costs of Loneliness at Work
⁴ Neuroscience News: Why Loneliness Hurts More When You're Poor
