Unlocking the Value of Humor in the Workplace: A Priceless Asset

3/28/2024

Anta Praņēviča, Figure Baltic Advisory senior consultant

April 1st is rapidly approaching, celebrated in many countries as April Fools' Day, a day when people share jokes, funny incidents, or play pranks on each other. But is humor suitable for the workplace? Does it help to bond a team and maintain a positive atmosphere in an organization, or perhaps jokes have a much greater and more serious impact?

In our team, we've long recognized the importance of humor. We've established not just a "100 Happy Days chat," but rather an "endless happy days" chat, where we share jokes and joyful moments. The holiday season and surprises from our secret Santa often turn into practical joke competitions. Not to mention the "inside jokes" and memes that make light of even the toughest work problems. All of this helps the team navigate through both big challenges and tough periods in the workplace. It's clear that working in an environment filled with lightness and humor is enjoyable, but it turns out that jokes in the workplace have a much more positive impact than we initially thought. Here's a brief summary of how humor looks from the perspective of a compensation study.

Base Salary and Bonuses

People who use humor at work are considered more professional and receive higher salaries. Managers who incorporate humor within their teams are rated more highly. This seems logical because information delivered alongside a joke is perceived, understood, and remembered much more easily. Similarly, humor reduces tension and allows for a more relaxed approach to even the most unpleasant issues. Ultimately, it's been proven that people who use humor at work receive higher performance evaluations, resulting in larger bonuses at the end of the year.

So, from a compensation standpoint, there's a triple benefit - employees who use humor daily are better valued, receive higher salaries, and earn larger bonuses!

Health Benefits and Well-being

People who laugh more often enjoy better physical and mental health. Therefore, by introducing humor into the workplace, employees take fewer sick days and are less likely to take sick leave. Even NASA recognized in 2019 that during long space missions, it's important to have at least one crew member with a great sense of humor to bond the team, smooth over differences, and make the psychologically challenging journey easier.

Employee Engagement and Performance

Humor at work not only lightens the mood but also enhances performance. In organizations where a positive and humor-filled work environment is established, people are more productive and creative, make decisions more easily, and willingly share their ideas. Also, in the "Mercer Global Talent Trends 2024" report, employees affirm that having fun at work is the fourth most important factor in achieving excellent results. Incidentally, the second is a sense of belonging, which can be strengthened through shared laughter. And the third is recognition for work done, which, as we've already discussed, is enhanced by humor.

Employee Turnover and Sense of Belonging

Employee turnover in environments with humor naturally decreases because, through shared laughter, employees strengthen their sense of belonging to the team and the company. Jennifer Aaker and Naomi Bagdonas, authors of "Humor, Seriously," explain this scientifically; when we laugh, our brains release endorphins (also produced during intense exercise), dopamine (the hormone released during sex responsible for bonding), and reduce the stress hormone cortisol. Quoting the authors: "So essentially, as far as our brains are concerned, laughing is like exercising, meditating, and having sex all at once."

Dark Humour

However, speaking from personal experience, like any "medicine," humor in the workplace should be used with caution. Recently, I was discussing team culture and stress reduction with a manager. The team was mainly dissatisfied with the compensation model, and no matter what solution the manager proposed, he received only criticism and complaints in return. Over the past few years, the team had experienced many changes, and the stress had reached a level that hindered productivity and the work atmosphere. "You need to introduce humor and jokes to the team," I suggested to the manager. "You know, laughter diminishes tension, just like fighting, sex, or laughter. Using the first two options could land you in court, so jokes are the only option left." His response didn't disappoint: "With my sense of humor, they'll still sue me..."

Humor, when used in moderation and without offending anyone, can bring several significant benefits to an organization. It undoubtedly reduces tension, promotes a sense of belonging, and improves performance. At the same time, if there are doubts about whether your sense of humor is compatible, you can always start with a team-building activity like improvisational theater.