The Hidden Cost of Loneliness in the Workplace

Loneliness is more than just a personal struggle—it’s a workplace challenge that affects employee engagement, team performance, and business outcomes. Sunny’s newest report uncovers the unseen toll of workplace isolation and loneliness, revealing the financial and human costs that organizations can’t afford to ignore.

Drawing on recent research, this report explores how employee loneliness influences engagement, productivity, retention, and healthcare costs. By understanding these dynamics, businesses can take meaningful action to create a culture of connection and resilience.

Key Findings

• Lonely employees take 5.7 additional stress-related sick days annually, costing $1,590 per employee. These costs disrupt productivity and team dynamics.
• Health-related expenses for each lonely employee add up to $1,986 annually due to increased risks of depression, diabetes, heart disease, and anxiety.
• Lonely employees are nearly twice as likely to quit, incurring an average turnover cost of $9,737 per person—impacting morale, continuity, and institutional knowledge.

Why This Report Matters

Loneliness is a costly business issue that can undermine employee engagement, culture, and performance. Organizations that address this growing trend can reduce its annual $13,309 cost per lonely employee while gaining significant benefits: healthier, more engaged teams and stronger business outcomes.

At Sunny®, we believe employee engagement is shaped by everyday workplace experiences. This report is a call to action: to recognize the impact of loneliness, understand its costs, and create workplace cultures where people feel supported, connected, and engaged.

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About the author

Steven Crane, MS, is Head of the Social Engagement Pillar with Stanford Lifestyle Medicine, Researcher at Stanford University, and Founder of Synaptic Insights Consulting.  His current research and innovation work in these roles is focused on how to help people change behavior to cultivate meaningful social relationships.