Office Friendships – Do the Benefits Outweigh the Risks? 

Business leaders and managers often find, perched on the precipice of good judgement, the argument for and against office friendships. Employee handbooks of yesteryear, and a few lingering versions today, warn against fraternizing with coworkers outside the office. Well-meaning managers discouraged friendships out of fear that fraternization would lead to distractions and too much “water cooler” gossip time.

Does it benefit a business to discourage office friendships? Many experts say, “No.”

“The top three challenges faced by HR organizations today are turnover, employee engagement, and succession planning,” reported Globoforce® and Society for Human Resources Management. Positive relationships keep people at jobs—even the jobs they don’t like. Roughly a quarter of working women have stayed at a job because they like their coworkers, even when the money was a little better at another company.

An expanding global economy and increased number of employees working remotely can lead to a sense of isolation and lack of cohesion, both of which contribute to employee disengagement. Managers can combat both through social activities designed for team building and fostering friendships. Believe it or not, friendly employees can make life easier for managers.

Satisfaction Increases
Dissatisfied employees result in employee turnover, or worse, one bad apple spoiling the bunch. An Elance/Odesk survey indicated, “That 52% of Millennials think employee loyalty is overrated.” How can a manager hope to compete against that mindset? Established work friendships increase employee satisfaction and lead to lower turnover.

Morale and Commitment Increase
Workers value the respect of coworkers who are also friends. The respect of those colleagues can help see them through difficult stretches at work. Friendships helps workers to gain meaning in the workplace through their connections. The elevation in status from coworker to friend can change mindset as well, encouraging greater respect and encouraging increased listening and collaboration in the team.

Productivity Improves
Workers who have friends at the office take fewer sick days. They show more job loyalty and change jobs less than those without friends at work. Employees with work friends also tend to interact more positively with customers, thereby increasing customer retention too. The Gallup organization believes that work friendships are an excellent predictor of workplace productivity, so much so that the question, “Do you have a best friend at work?” is one of their survey items.

Pressure on Supervisors Decreases
Friends at the office can make things easier, especially for newer employees. Orientations aimed at fostering workplace friendships help new employees acclimate. Office friends can often explain company culture and assist employees with transitions.

All for One, and One for All
Friendships encourage coworkers to see how their activity or inactivity can help or hurt their coworkers and the company. We’ve all gotten distress calls from a friend and responded in their time of needs, even when it might not have been convenient to do so. Camaraderie at work often encourage a similar response. People who have friends as work more readily identify as part of the team. They can more easily band together behind goals or to problem solve.

If, as manager, you chooses to encourage friendships at the office, watch out for:

Jealousy – one potential downside of too much employee interaction might be jealousy, for example, when one friend is promoted and the other is not. Too much socializing might become a drain on productivity.

Conflicts of Interest – Friendships between supervisors and subordinates can create conflicts. Supervising or evaluating a friend can be difficult at best, and the situation might lead other employees to see the relationship as unfair or promoting favoritism.