Gossip in Organizations: How Bad is It?

In a recent post we discussed trust and honesty and the impact a lack of these characteristics can have in an organization. When a leader does not embody and demonstrate these characteristics, one result can be the dissemination of information through gossip. Gossip is often seen as a negative behavior in organizations, yet it persists across industries and workplaces. While many may dismiss it as merely idle chatter, gossip can serve as both a source of valuable information (especially in the absence of honest, official communication) and a harmful force that undermines a positive organizational culture. Leaders must, therefore, be able to understand and manage gossip carefully. 

Gossip as a Source of Information

Gossip, by definition, is informal communication, usually about individuals or events, that may or may not be based on fact. In an organizational setting, gossip often spreads through unofficial channels such as breakroom conversations, after-work meetups, or even digital communications like messaging apps or other social media forums. Though it is not the preferred method of sharing information, it can offer insight into the organization's undercurrents, helping leaders stay in tune with what's happening below the surface.

Why Gossip Exists

People engage in gossip for various reasons, including the desire to connect with others, to understand complex situations, or to make sense of organizational dynamics. In this way, gossip serves as a form of sensemaking, allowing employees to process information in a more informal, accessible way. 

Employees may use gossip to:

• Understand power dynamics: Informal conversations help individuals gauge an organization's unwritten rules, such as who has real decision-making power or who is allied with whom. These may, at times, only be perceptions.
• Learn about opportunities: Many employees rely on the "grapevine" to hear about upcoming projects, job openings, or changes in organizational direction.
• Navigate uncertainty: In times of organizational change or ambiguity, official communication may need to catch up to the reality on the ground. In these cases, gossip fills the information void, even if it is incomplete or inaccurate.

While there may be more reliable or ethical methods of communication, gossip can serve as a mechanism for employees to gain insights that they might not otherwise have access to.

The Dark Side of Gossip: Erosion of Trust and Culture

While gossip can serve as an informal communication channel, it also has significant downsides. One of the most notable negative impacts of gossip is how it can erode trust within the organization. In environments where gossip runs rampant, employees may begin to question each other's motives, creating a culture of suspicion and divisiveness.

Some of the ways in which gossip can undermine an organization’s culture include:

• Creating a toxic environment: Gossip that focuses on individuals' perceived failures, shortcomings, or personal lives can contribute to a hostile work environment. This can lead to emotional distress, decreased productivity, and even higher turnover rates, particularly if employees feel they are being unfairly targeted.
• Damaging trust: Once gossip starts, it often escalates into a cycle of distrust. People who are frequently the subjects of gossip may withdraw from colleagues, become defensive, or disengage from the team entirely. This erosion of trust can harm collaboration, as team members may be less willing to work closely with those they fear might gossip about them. The source of the information may also be seen as untrustworthy and unable to hold confidence.
• Fostering exclusion: Gossip can lead to the formation of cliques, with certain groups dominating the flow of information. This can isolate others and prevent open communication, further entrenching divisions within the organization.
• Promoting misinformation: Because gossip is informal and often based on incomplete or incorrect information, it can spread misinformation throughout the organization. This can lead to confusion, poor decision-making, and a lack of confidence in leadership, particularly when gossip contradicts official messaging.

Fear as a Catalyst for Gossip

Fear is one of the primary drivers of gossip in organizations. When employees are uncertain or anxious, they are more likely to engage in gossip to reduce their fears or to gain some sense of control over their environment. Fear can manifest in various ways, including fear of job loss, fear of organizational change, or fear of exclusion from networks.

How Does Fear Fuel Gossip?

• Uncertainty in Leadership: When employees are unsure about the future of the organization or their role within it, they may turn to gossip to try to understand what's happening. This can be particularly prevalent in times of restructuring, layoffs, general uncertainty, or leadership changes. In these scenarios, official communication may be slow or vague, leading employees to speculate and spread rumors in an attempt to fill the gaps.
• Fear of Exclusion: Employees may participate in gossip because they fear being left out. By engaging in gossip, they feel included in important, albeit informal, information networks. This desire for inclusion can perpetuate gossip, as employees feel the need to stay "informed."
• Fear of Repercussions: When employees feel that speaking up through official channels may lead to retaliation or punishment, they may resort to gossip as a safer way to air grievances or share sensitive information. For example, if an employee witnesses unethical behavior but fears reporting it through formal channels, they may share their concerns informally with coworkers. (We will cover psychological safety in a future blog post.)

Managing Gossip in Organizations

Given the complexities of gossip, leaders must address it carefully. While it is practically impossible to eliminate gossip entirely, there are ways to minimize its negative impact and foster a more open and transparent culture.

Strategies for Reducing Harmful Gossip

• Encourage open communication: Leaders should foster an environment where employees can feel comfortable voicing their concerns or seeking information directly from management. When employees have access to clear, timely information, they are less likely to rely on gossip to stay informed.
• Model positive behavior: Leaders set the tone for organizational culture. By avoiding gossip and addressing issues directly, leaders can help create a culture where open, respectful communication is the norm.
• Build trust: A culture of trust can significantly reduce the need for gossip. Leaders can build trust by being transparent in their decision-making, providing regular updates, and involving employees in key discussions that affect their work.
• Address issues promptly: When leaders hear rumors or gossip that could be harmful, it's important to address the underlying issue quickly. Ignoring gossip can allow it to fester and grow, whereas directly addressing the issue can dispel rumors and reassure employees.

Conclusion

Gossip, though informal and often problematic, is a reality in most organizations. It can provide useful insights, but it also has the potential to undermine trust, spread misinformation, and create a toxic work environment. Leaders must recognize the role fear plays in perpetuating gossip and take steps to build a culture of open communication and trust. By doing so, they can minimize the harmful effects of gossip and create a more positive, collaborative organizational culture.

For more information about this topic, we recommend reading the following:

Kurland, N. B., & Pelled, L. H. (2000). Passing the word: Toward a model of gossip and power in the workplace. Academy of Management Review, 25(2), 428-438.

Michelson, G., & Mouly, V. S. (2004). Do loose lips sink ships? The meaning, antecedents, and consequences of rumor and gossip in organizations. Corporate Communications: An International Journal, 9(3), 189-201.

Noon, M., & Delbridge, R. (1993). News from behind my hand: Gossip in organizations. Organization Studies, 14(1), 23-36.

Foster, E. K. (2004). Research on gossip: Taxonomy, methods, and future directions. Review of General Psychology, 8(2), 78-99.