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Rumor Has It: Gossips Can Be Bad For Business


A social gathering is incomplete if the latest gossip is not spilled over drinks. They are intriguing and provide you a membership of an exclusive club.

In this entire process, you fail to see that you violated some of the basic rules:

  1. Violating privacy
  2. Talking behind people’s back
  3. Spreading unsubstantiated news

Water coolers are the common gossip ground..

Victims Of Gossip

Gossipers fail to see their impact on their subject of discussion. An unaccredited source can undermine confidence of many people. As gossip does not only cause defamation, but also triggers loss of trust amongst peers.

If an employee feels affronted by gossip, he might not share valuable ideas or important details. This way, company’s productivity is hampered. Likewise, gossip about other business can limit your growth. If you end up believing false news about a certain firm, many potential business opportunities are forgone.

Damage Client Relationship

Gossips are never discreet. It spreads like wild fire, making its way to your clients. Excessive gossips may chip away your client’s trust; they might start looking for other credible sources for business. The loss of clients impact your company’s profit and reputation.

Communication Gap

Gossip can be a twisted version of Chinese whispers. Employees fill in the gaps with sensational information. Managers keep the facts to themselves, limiting employee access breeds gossip culture.

This is common in organizations that are undergoing drastic changes like, merger or takeover. Every department has news of its own. All this creates unnecessary panic, causing valuable human resource to switch jobs.

This in return increases the company’s recruitment and training cost, and may even earn them a bad reputation in the job market.

Defamation Lawsuit

Targeting a specific employee with false accusation, may lead to a defamation lawsuit. Spreading derogatory information regarding someone’s character, with intent of causing harm is punishable by law.

A disgruntle employee may not only sue the specific individual, but also hold your organization accountable for ineffective gossip policies.

Impedes Improvement

If you want to rectify something, go to the source of trouble rather than approaching the ears of a gossip mongers. Gossiping about unsatisfactory appraisal with everyone else, except your manager or HR, may never resolve your issue. This makes gossiping an inhibiter in performance improvement, as problems are not communicated to the required person.

How To Avoid Gossip Culture

  • Communicate a no gossip policy in your organization.
  • Inform employees of the negative impact and the severe actions that might be taken against such incidents.
  • Stop the gossip before it spreads; identify gossip mongers and address them in a private meeting.
  • Practice what you preach; make sure the upper management does not set any precedence of gossiping.
  • Encourage positive communication.  
  • Don’t validate gossip by sending out a mass email to the entire office.
  • Equip your management with conflict resolution tools.

Is your organization turning into a breeding ground for gossip? We can help provide customized strategic solutions for individuals and organization.

With our conflict management program, you can deal with the pressing issues of your organization and rebuild the lost trust of your employees. Call 1-877-803-3486, for consultation.