New research by leading B2B SaaS company Sprout Solutions found that workplace friendship dominated other factors when it came to employee retention, including artificial intelligence (AI) adoption and salary increases.
Employees with three or more workplace friendships are 40 percent more likely to remain beyond five years.
Moreover, those citing “sadness at leaving colleagues” as a retention factor outnumber those motivated by salary increases 3:1.
These findings came from the 2025 State of HR Report prepared by Sprout Solutions and BS Works. The methodology involved surveying 3,819 employees across industries, company sizes, and generational cohorts.
Organizations scoring highest across the human-centered metrics of Connection, Contribution, and Community—known as the “3Cs of AI-Era Retention”— show 35 percent lower turnover rates, even in cases when they offered below-market compensation.
Specifically, employees embedded in 1 to 3 workplace social groups show significantly longer tenure, with each additional meaningful relationship correlating with an additional 8 months of employment.
Meanwhile, workers reporting a clear purpose and meaningful contribution stay 2.3 times longer than those focused primarily on career advancement or salary growth.
Organizations fostering informal support networks likewise see retention rates climb despite offering fewer remote work options than competitors.
“Companies implementing AI to boost efficiency while neglecting human connection are optimizing for the wrong variables,” Sprout Solutions chief executive officer Patrick Gentry said.
