The managing director of a Sydney-based recruitment agency recently grappled with a problem. He could not afford to award all employees a pay increase but was worried an alternative proposal could destroy morale. So he decided to start a rumour.
He told a trusted subordinate of his plan to award higher salaries to a few key staff, who would also have to take on greater responsibilities. As expected, news spread rapidly through the company and employees were surprisingly positive about the proposal. So he decided to press on with the new pay structure.Such an experience, says Grant Michelson, research director at Audencia Nantes Business School in France, shows that senior managers can use office gossip networks as a quick way to test reaction to proposals.
As the economy slows and companies cut costs, the rumour mill is likely to focus on where the axe falls next. Managers have traditionally seen gossip about such an issue as detrimental to productivity and bad for morale. They think they “must do something about the ‘problem’ of gossip”, says Mr Michelson. But many believe that informal channels and conversations in the workplace can be helpful to employers.
At any rate, attempts to thwart rumour are futile, says Frank McAndrew, professor of psychology at Knox University, Illinois: “Managers cannot stop gossip – it is too much a part of human nature; it would be just as difficult to get people to stop breathing.”
Nonetheless, gossip and rumour has a dark side. According to Prof McAndrew, when employees become preoccupied by gossip they can become paralysed and wreck managers’ attempts to introduce change. Moreover, gossip rarely feels benign if you are the object of it.
But managers ignore it at their cost. As Mr Michelson says: “It doesn’t mean you should take action on every bit of information you hear but if it’s from a reliable source, it is probably worth listening to.” He cites the findings of an inquiry in 2005 that looked into how two male psychiatrists working from the same British hospital were able to sexually abuse female patients over a period of more than two decades undetected. The final report found that management should have paid greater heed to rumours indicating that abuse was going on.
Mike Emmott, adviser on employee relations at the Chartered Institute of Personnel and Development, suggests the only way to slow the rumour mill is for companies to be open with information: “They need to get there first. Managers must be honest and credible. You’ve got to be honest even if you don’t know what’s going on. You’ve got to be available.”
If, like the managing director of the Sydney recruitment company, you want to test a proposal through the gossip network, it is vital to pick the right messenger, says Mr Michelson: “They have to be a subordinate who you have built up some trust [with], either through social or professional activities. But they can’t be so far below you in the pecking order that such easy exchanges would be unlikely.”
From the employee’s perspective, it is important not to look like the office gossip. “You certainly don’t want to look like you’ve got time to waste in this time of uncertainty,” says Mr Emmott.
Stephen Viscusi, author of How to Bullet-Proof Your Job, believes the best strategy is to be friends with the office gossip: the “trick is to absorb the information without repeating it, to appear to be above it even while you’re filing it away for future reference to use, if necessary, to bullet-proof your job”.
He cites the example of a friend who heard his company was about to be acquired and deferred his vacation. The rumour turned out to true and by being at work when the announcement came, he was able to carve out a clear role for himself in the fall-out from the merger.
Gossip can bring employees together and force people to be good citizens, suggests Prof McAndrew: “If I am a slacker who might be tempted to not do my fair share, knowing that people will gossip about me and that my reputation within the group will suffer might force me to do more than I otherwise would.”
What is more, says Mr Emmott, it can be fun: “If you had a workplace without gossip it would be dead and dysfunctional.”