Loneliness: The Hidden Workplace Risk You Can’t Afford to Ignore

Employers across the U.S. are grappling with escalating health care costs—family coverage premiums rose 7% this year alone. Now, imagine discovering that a significant portion of your workforce was engaged in a habit as damaging to their health as smoking 15 cigarettes a day. You’d likely rush to intervene, providing support and resources to help them quit.

Yet, there’s a pervasive issue in workplaces everywhere that poses exactly this level of risk to employee health—and it’s often overlooked: loneliness.
Loneliness isn’t just an emotional struggle; it’s a silent threat with profound physical and mental health consequences. And as the U.S. Surgeon General recently highlighted, it’s a growing epidemic. For organizations, this epidemic translates into higher health care claims, lower productivity, and significant economic costs—costs that are rising every year.

Consider this: loneliness increases the risk of premature death by 26% and poses a mortality risk on par with smoking​. And for employees, the toll of loneliness manifests as stress, disengagement, and burnout—all of which affect your bottom line.

As Dr. Mary Odafe, Licensed Clinical Psychologist and Clinical and Scientific Affairs Liaison at Modern Health, explains: "Loneliness is a subjective experience, meaning you can be in a room full of people and still feel isolated if you lack meaningful connection. For organizations, this means addressing loneliness isn't optional—it’s essential for fostering both individual well-being and organizational success."

This silent epidemic demands attention. Here’s why tackling loneliness should be at the top of every organization’s priority list in 2025.

Loneliness and Productivity: A Workplace Crisis with Real Costs

Loneliness isn’t just a fleeting emotional experience—it’s a critical public health concern with far-reaching consequences. For employees, it manifests as physical and mental health challenges; for organizations, it creates measurable productivity and financial burdens.

How Loneliness Harms Both Body and Mind

Research consistently demonstrates that loneliness significantly impacts physical health, with consequences comparable to well-known risk factors like smoking and obesity. A report from the U.S. Surgeon General emphasizes that individuals with poor social connection face a 29% greater risk of heart disease and a 32% higher likelihood of stroke​.

"The biological, psychological, and behavioral pathways influenced by social disconnection make loneliness a profound risk factor for poor health outcomes—including higher morbidity and mortality rates,” explains Dr. Odafe. “Addressing these risks at an organizational level is essential for fostering employee well-being."

Mental health isn’t spared, either. Employees grappling with loneliness are more likely to experience anxiety, depression, and stress. These challenges don’t stay confined to personal lives; they spill over into the workplace, affecting engagement and collaboration.

The Ripple Effects of Loneliness on Engagement and Connection

For employers, the consequences of loneliness are costly and wide-ranging. Stress-related absenteeism alone costs U.S. businesses an estimated $154 billion annually​. But the ripple effects don’t stop there. Disengaged employees, often struggling with feelings of isolation, are more likely to leave their jobs, compounding turnover costs.

Dr. Sara Sagui Henson, Health Psychologist and Senior Research Scientist at Modern Health, highlights the broader implications: "When loneliness improves, we see cascading benefits—lower stress and anxiety, increased resilience, and stronger social support. Addressing loneliness isn’t just about making people feel better; it’s about creating measurable improvements in their well-being and how they show up at work."

The financial toll of untreated loneliness also includes rising health care costs. Employees experiencing loneliness tend to utilize more medical services, driving up claims for stress-related illnesses and chronic conditions like hypertension and diabetes​​.

These realities paint a stark picture: loneliness isn’t an intangible challenge—it’s a measurable risk factor with profound implications for individual and organizational health.

Counting the Costs: How Loneliness Drains Organizational Resources

Loneliness doesn’t just harm employee health—it’s a drain on organizational resources. The financial implications of loneliness ripple across health care expenses, workforce productivity, and the hidden costs of turnover. Addressing loneliness isn’t just a well-being initiative; it’s a strategic business decision.

Loneliness Drives Health Care Costs 

The connection between loneliness and increased health care utilization is clear. Socially disconnected employees are more likely to develop stress-related illnesses, chronic conditions like diabetes and hypertension, and even cardiovascular disease​​.

For employers, this translates directly into higher insurance claims. Dr. Mary Odafe emphasizes: "When loneliness exacerbates health issues, organizations bear the brunt of rising claims and unanticipated medical expenses. These costs are avoidable if organizations proactively invest in fostering connection and well-being."

One study found that social isolation among older adults alone accounts for $6.7 billion in excess Medicare spending annually​. For businesses, failing to address loneliness means absorbing similar avoidable costs across their insured workforce.

Why Disconnection Fuels Turnover and Absenteeism 

Loneliness doesn’t just manifest as medical bills; it manifests as disengagement, absenteeism, and attrition. Employees grappling with loneliness are more likely to call out sick, disengage from their work, or seek new opportunities altogether.

In a competitive labor market, turnover is a significant expense. Beyond the direct costs of recruitment and training, there’s the loss of institutional knowledge and team cohesion. The Society for Human Resource Management estimates that replacing an employee costs organizations six to nine months of that employee’s salary. When loneliness drives turnover, those costs multiply.

Dr. Sara Sagui Henson explains: "Loneliness erodes the sense of belonging that keeps employees loyal to their organizations. By addressing loneliness, companies can improve retention and reduce the considerable costs of turnover."

Additionally, absenteeism caused by loneliness is a growing concern. Stress-related absenteeism alone costs U.S. employers billions annually​. Employees who feel disconnected are also more likely to engage in presenteeism—showing up to work but underperforming, which further impacts productivity and team dynamics.

The High Price of Ignoring Loneliness 

Beyond these measurable costs, the failure to address loneliness affects workplace culture and morale. When employees feel unsupported and disconnected, the ripple effects impact everything from innovation to client satisfaction.

The bottom line is clear: tackling loneliness isn’t just about compassion—it’s about protecting the organization’s financial health. As Dr. Odafe succinctly puts it: "Loneliness isn’t a small line item in the budget; it’s a significant factor influencing the overall cost of doing business. Addressing it is an investment in long-term sustainability."

From Isolation to Connection: Proven Strategies That Work

Loneliness may feel overwhelming, but it’s far from an intractable issue. Research shows that targeted, evidence-based interventions can significantly reduce loneliness and its associated impacts. Modern Health’s comprehensive mental health platform exemplifies how organizations can implement meaningful, scalable solutions.

A Holistic Approach to Combating Loneliness 

Modern Health combines one-on-one support, group sessions, and self-guided resources to create personalized care pathways.
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In a recent study, 57% of Modern Health members reported high levels of loneliness before beginning care. Over three months, those who engaged with Modern Health services saw loneliness decrease significantly, with reductions in anxiety (37%) and depression (39%)​.

"Loneliness is not a permanent condition. With targeted interventions like personalized care and community support, we can create measurable improvements in both mental and social health, empowering employees to thrive in every aspect of their lives."

Group Support: Building Empathy and Community 

Modern Health’s Circles, for example, provide an inclusive space for employees to connect around shared experiences, reducing isolation while fostering empathy and understanding. These group sessions have been shown to improve feelings of connection and reduce loneliness-related symptoms​.

Actionable Solutions for HR Leaders to Foster Connection

Creating a connected workplace doesn’t require a massive overhaul—it starts with intentional, targeted actions. By fostering a culture of connection, leveraging digital tools, and prioritizing inclusion, HR leaders and benefits consultants can combat loneliness while driving organizational success.

Fostering Connection Through Culture and Community 

Loneliness thrives in environments where employees feel isolated or disengaged. Cultivating a culture of connection means creating opportunities for employees to build meaningful relationships:

• Team-Building Activities: Organize initiatives that go beyond surface-level interactions. Collaborative workshops, volunteering events, or creative challenges foster authentic connections and build trust.
• Mentorship Programs: Pair employees with mentors across different levels or departments to encourage professional growth and personal connection.
• Employee Resource Groups (ERGs): Support ERGs that bring employees together around shared identities or interests, such as cultural heritage, caregiving, or shared hobbies.

As Dr. Sara Sagui Henson notes: "A workplace culture that prioritizes connection isn't just supportive—it's transformative. It strengthens trust, collaboration, and loyalty among employees."

Use Technology to Bridge Gaps in Connection

In today’s hybrid and remote workplace, digital tools are critical for bridging gaps in connection and care.

• Flexible Mental Health Support: Provide employees with access to platforms like Modern Health, which offer therapy, coaching, and self-guided resources available anytime, anywhere.
• Virtual Collaboration Tools: Invest in platforms such as Slack, Microsoft Teams, or Asana to foster collaboration and casual interactions in distributed teams. Encourage “virtual coffee chats” or interest-based group channels to keep relationships thriving.
• Pulse Surveys: Regularly assess employee well-being and loneliness levels with quick surveys. Analyze trends to identify areas where intervention is needed most.

These tools not only make support accessible but also empower employees to seek help when they need it, without stigma.

Creating an Inclusive Culture Where Everyone Belongs

Loneliness disproportionately affects marginalized groups, including employees from underrepresented racial and ethnic backgrounds, LGBTQ+ employees, and those with disabilities. Organizations must ensure that initiatives are inclusive and equitable:

• Culturally Competent Care: Offer mental health services tailored to diverse cultural backgrounds and lived experiences. Modern Health’s approach includes matching employees with providers who understand their unique needs.
• Inclusive Social Events: Design events that consider various preferences, such as quieter gatherings for introverts or flexible timing to accommodate caregivers.
• Leadership Training: Equip managers with the skills to recognize signs of loneliness and foster an inclusive, supportive team environment.

Dr. Mary Odafe emphasizes: "Inclusion isn’t just about representation; it’s about creating environments where everyone feels they belong. That sense of belonging is a powerful antidote to loneliness."

The Bottom Line

These steps improve employee well-being and strengthen the organization's fabric. When employees feel connected and supported, they show up with greater engagement, resilience, and productivity.

HR leaders have a unique opportunity to lead the charge in combating loneliness. By taking these practical steps, they can help build workplaces where people feel valued, connected, and empowered to thrive.

The ROI of Connection: Building a Thriving Workforce in 2025

Addressing loneliness isn’t just about boosting morale or checking a box for employee well-being initiatives—it’s about safeguarding your organization's future. Loneliness impacts health, productivity, and the bottom line in ways that are too significant to ignore. Organizations prioritizing social connection are better positioned to reduce health care costs, improve retention, and foster a thriving workforce.

The ROI of connection isn’t just financial—it’s human. A connected workforce is a healthier, happier, and more engaged workforce. — Dr. Sara Sagui Henson

2025 is a year of opportunity: a chance for HR leaders and benefits consultants to lead with intention, tackling loneliness with evidence-based solutions that create meaningful change. From fostering cultures of connection to leveraging Modern Health’s comprehensive mental health platform, the tools are already available to build a stronger, more resilient workplace.

By investing in connection, organizations are solving today’s challenges and building the foundation for long-term success and well-being.

Take the next step toward creating a healthier, more connected workforce. Contact Modern Health to learn how our solutions can help your organization thrive. Together, we can make 2025 the year of resilience, connection, and growth.