1. The Health Cost

Loneliness has been found through a number of studies to cause chronic stress and higher levels of a key stress-related hormone, cortisol.

This hormone damages blood vessels and other tissues, increasing the risk of heart disease, diabetes, joint disease, stroke, obesity, and premature death.

Research now shows that the health impact of loneliness is similar to smoking 15 cigarettes a day or drinking a bottle of wine a day

On top of this, it also has well-established mental health implications, and can often lead to depression, anxiety and it is known to be a significant risk factor for suicide.

A report from Cigna found that lonely employees are twice as likely to miss a day of work due to illness, and five times more likely to miss work due to stress. Meanwhile, a lack of meaningful social interactions has also been shown to increase the risk of burnout, another pervasive issue in the modern workplace.

As part of the wider cost of loneliness – “the health cost” of absent work staff of sick due to loneliness or related issues, or due to caring for those with health issues related to loneliness was calculated to cost employers a total of £240 million per year.

2. The Productivity Cost

Chronic loneliness does not only have health impacts – it can also hijack your brain’s pre-frontal cortex, which governs decision making, planning, emotional regulation, analysis, and abstract thinking.

This is supported by the Surgeon General who outlined in the Harvard Business Review that loneliness was also shown to impact task performance, limit creativity, and impairs other aspects of executive function.

Loneliness can also cause workers to turn to drug and alcohol abuse, and it has been shown to cause poor or disturbed sleep, both of which also have their own impacts on work effectiveness and alertness during work hours.

Loneliness has a particular impact on young people’s ambition and confidence levels, as a report by the Co-op foundation found that:

• 62% of lonely young adults say that ‘feeling lonely makes them lose confidence in themselves’
• 48% of lonely young adults say that feeling lonely makes them ‘less likely to want to progress in work’

We also know that loneliness can also cause people to self-isolate and act in ways that may alienate others. As a result, lonelier employees seem less approachable and are subsequently left out of the loop when it comes to a lot of office communication.

Loneliness is also socially “contagious”, and so a few lonely individuals can have a negative impact on team dynamics and morale, affecting overall organisational culture and effectiveness.

“The Productivity cost” to organisations as part of the New Economics Foundation’s research was calculated to be the 2nd highest cost, at £665 million per year.

3. The Retention Cost

However, the most costly impact of loneliness to businesses is the damaging effect on staff retention.

A study by Officevibe, found that 70 percent of employees say friends at work is the most crucial element to a happy working life, and that over 60% of workers would turn down a pay rise, if it meant not getting on with work colleagues.

Meanwhile, a separate survey found that 57% of workers said that having just one good friend at work makes their job more enjoyable.

On the reverse, researchers from the London School of Economics and Political Science found that employees who feel lonely are likelier to quit their jobs, with loneliness being a stronger predictor of leaving than job satisfaction or workload.

Given loneliness disproportionately impacts young people at work, it is perhaps no surprise that the lowest staff retention is amongst this age group, with a 2022 Deloitte study showing that young people (18-29 years old) were found to be the age group by far the most likely to have moved jobs or be considering a job move.

“The retention cost” was found to be by far the highest of the New Economics Foundation’s research and costed employers at £1.62 Billion per year.

This is so costly because poor retention leads to significant recruitment and training costs and knowledge gaps within the organisation. But it also causes business disruption and the upheaval resulting from high staff turnover often causes serious harm to customer relationships, company culture and morale.

The Solution

Ultimately, all this research demonstrates the devastating cost that loneliness can have on one’s workforce, the individuals themselves and productivity of staff.

This inevitably will lead to significantly reduced profits that can hamper business growth and organisational success.

On the reverse, building strong social connections can provides a sense of cohesion in a work team, which can cultivate creativity, strong communication and collaboration. Employees with positive relationships become are more likely to become dedicated to supporting their team members, committed to the organisation and motivated to perform their best.

And Deloitte’s research found that employers that invest in building social connections and supporting staff wellbeing see a return of £5.30 on average for every £1 invested.

In short, tackling loneliness in the workplace is not just an important feature of a socially responsible and supportive employer – it also makes very good business sense.

For organisation looking to tackle loneliness, and build social connections – back in May 2023, the US Surgeon General published an advisory on the Healing Effects of Social Connection and Community. In this advisory, he offered the 6 recommendations to businesses on tackling loneliness in the workplace:

1. Make social connection a strategic priority in the workplace at all levels (administration, management, and employees).
2. Train, resource, and empower leaders and managers to promote connection in the workplace and implement programmes that foster connection.
3. Leverage existing leadership and employee training, orientation, and wellness resources to educate the workforce about loneliness and the importance of social connection for workplace well-being, health, productivity, performance, retention, and other markers of success.
4. Create practices and a workplace culture that allow people to connect to one another as whole people, not just as skillsets, and that fosters inclusion and belonging. 
5. Ensure there are pro-connection provisions and policies in place that protect and encourage workers’ ability to nurture and create connections outside work
6. Consider the opportunities and mitigate the challenges posed by flexible work hours and arrangements, which may impact workers’ abilities to connect with others both within and outside of work.

If you would like to make social connection a priority and look to implement some of the recommendations in this advisory, then we’d love to have a conversation with you.

With a team of experts advisors in the fields of loneliness and friendship – we are able to work with you to develop a bespoke social connections strategy that addresses these 6 points, and supports you in your business goals.

Through our network of training partners, we are also able to help you up-skill your staff on how to spot loneliness, effectively support those struggling with it and build organisational cultures that effectively protect against loneliness.