How strong are your work relationships?

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TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Belinda Yu   Editor, Atlanta The state of social capital The news • Best friends forever. Have a best friend at work? If so, you're probably more engaged in your role, while your employer is likelier to enjoy bigger profits and more satisfied customers. Companies benefit from workplace friendships, and yet those very friendships are now at risk. With three million jobs becoming work-from-home roles in 2021, some younger workers have not yet seen their colleagues face-to-face. Employers hope to boost relationships through holding fun events, such as nature walks and online trivia. [NYT] • Friends in high places. Friendships that transcend class lines are what enable people from disadvantaged backgrounds to move up the economic ladder, new research reveals. In America, areas that have the most upward mobility are also the ones where low-income and high-income residents are more likely to connect, finds a Harvard economist. Underprivileged kids that become a part of communities with more cross-class relationships earn a 20% higher salary, on average, when they're adults. [NPR] Our research shows that employees who feel more connected with people in their networks are 1.5 times more likely to report being engaged at work. Our insights • Power of connection. Individuals, leaders, and teams that feel connected and trust one another tend to be more loyal, productive, and efficient. But professional networks have recently been shrinking, find McKinsey senior partners John Parsons, Bill Schaninger, and colleagues. A McKinsey survey of 5,500 US workers reveals that more than 75% of respondents in full-time roles report having less frequent connections, smaller networks, and putting less time and effort into relationships since the COVID-19 pandemic began. • Dwindling relationships. With employees continuing to leave jobs at unprecedented rates, the decline in social capital is concerning. When workers leave, companies can experience significant losses in productivity and knowledge, in addition to bearing the expense of replacing employees. Women and frontline workers are more likely than others to face a lack of access to networks, McKinsey research suggests. Discover how organizations can assess three dimensions of social capital and address any gaps. Shore up social capital Was this forwarded to you? Sign up here. Or send us feedback — we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007