According to Danish-American comedian Victor Borge, “laughter is the shortest distance between two people.” While the Clown Prince of Denmark might have had obvious professional reasons to care whether people around him were laughing, it turns out humor is important in any workplace, even (or especially) those with a serious job to do.

Diffusing tension, bringing colleagues together, and helping managers seem more human, humor is a tool that is often overlooked, but can bring definite benefits when used in the right way. Leaders who get the balance right are seen as more confident and inspiring than their serious counterparts. Their teams are more cohesive, and they get more done too.

Of course, there’s a delicate balance to using humor effectively in the workplace. The odd joke falling flat can be turned around if you’re quick on your feet. But some forms of humor can be awkward, uncomfortable, or downright cruel. Knowing what is and isn’t a laughing matter is an essential skill for any leader.

So, what are the benefits of a little levity during your workday? What types of humor are effective in the workplace? And what should be avoided?

The Benefits of Embracing Humor as a Leader

Humor and laughter are essential parts of being human. Scientists theorize that laughter evolved as a way to create and maintain social bonds more quickly, encouraging cooperation and strong relationships between members of a group.

While the average modern workplace hopefully doesn’t look too much like the hunter-gatherer groups of our early ancestors, laughter remains one of the best ways to bring people together. When used correctly, it has numerous benefits for both leaders and their teams.

1. Reduced Stress and Tension

Work can be a stressful place. There’s plenty of pressure on leaders and team members alike to perform well, meet deadlines, and reach targets. According to a 2020 study by Gallup, over half of workers in the U.S. and Canada experience stress at work daily.

Fortunately, laughter can be a great ally in relieving stress. It is so effective that some researchers have even suggested it should be prescribed as a medical intervention.

A workplace culture that embraces humor and levity can help to reduce stress and burnout. Laugher is a time-honored coping mechanism, so a leader who uses humor effectively can support their team in growing their resilience and performing well under pressure.

Research shows that humor also boosts employees’ satisfaction at work and makes them less likely to disengage from their roles.

2. Better Team Cohesion

Laughter is designed to make us feel closer to others. When we share a joke, it strengthens the connection between us. As a 2017 study found, we’re more likely to think people are similar to us if we’ve laughed along with them.

When it comes to the workplace, humor and laughter are positive ways to create a sense of cohesion between team members. The very act of laughing releases positive endorphins, making us more likely to feel warm and friendly to those around us.

Shared jokes also help us identify as part of a group, especially at times of high stress. If we’re working under pressure, the ability to laugh with team members can both diffuse tension and create a sense of team spirit that brings people together and boosts morale.

Teams work most effectively together when there is a strong level of cohesion and trust between employees. While humor is just one tool leaders can use to encourage their teams to bond, it can be a very effective one.

3. Increased Performance

As leaders, our ultimate aim is to support our teams in performing as effectively and successfully as they can. We want to encourage hard work, creativity, and dedication. And it seems that laughter might help.

One 2014 study looked at the connection between humor and team performance in industrial organizations in Germany. After analyzing recordings of 54 team meetings, the researchers concluded that humor patterns have a positive effect on team performance, communication, and problem solving.

They also observed that people were more likely to participate in meetings, offer creative solutions, and suggest new ideas. Shared laughter makes us feel safe, which means we find it less daunting to speak up and share our thoughts.

Laughter also makes us happy. That release of positive chemical boosts our mood and helps us relax.

Not only does this have benefits for our employees’ health and mental wellbeing, but it also gives a boost to productivity. Research from the University of Warwick reveals that happiness makes people 12% more productive on average.

4. Respected Leadership

The best leaders have a powerful effect on the teams and companies they work with. Boosting morale, improving productivity, and getting the best from their staff members, effective leaders are a company’s lifeblood.

Being a great leader doesn’t need to mean being a hilarious comedian. However, using humor as part of your management style can help you lead more effectively.

Research shows that supervisors who use humor positively are seen as 27% more motivating and admirable than those who don’t. Their teams are more likely to rate them well. Plus, the people they lead have higher levels of performance, job satisfaction, and team cohesion.

Done right, your sense of humor gives your employees an insight into your personality. It makes you seem more human and approachable, meaning your team members are more likely to come to you when they have issues.

Successfully cracking a joke can also make you seem more confident and competent, according to research published in the Journal of Personality and Social Psychology. We often describe funny people as being ‘quick-witted’ – not just funny, but also intelligent, as they can easily pick up on opportunities for humor and catch the mood of the room.

Types of Humor

Although there are many benefits to positive humor in the workplace, joking around can be a risky business. Gentle teasing between colleagues who know, like, and respect each other can strengthen social bonds. However, jokes that leave people feeling picked on, hurt, or discriminated against will have the opposite effect.

“In-jokes” can backfire too. At their best, they bring people together and help them feel like members of the group. However, they can also alienate newer team members and others who feel excluded by references they don’t understand.

Poking fun at yourself might seem like a safer bet. A little self-deprecation can make your team respect you more, as it shows humility and self-awareness. But if you put yourself down too regularly, on the other hand, you might find the opposite happens – people begin to believe that you really aren’t as good as they thought.

Achieving the fine balance of using humor positively can be a challenge. What we find funny might not appeal to others, and vice versa.

It helps to start by understanding the different forms of humor. Psychologist Rod Martin identified four main types in 2003. These are:

1. Self-Enhancing

This is humor used to protect ourselves and enhance our status – but in a benign way. Jokes aimed at relieving tension, defending ourselves, and reducing stress all fall into this category, as long as they don’t harm others. If you always crack a joke to cheer yourself up in a crisis, this is the type of humor you’re reaching for. It helps us feel more in control of situations.

This category can also include dark or gallows humor, which is often used in times of stress and tension. Crucially, it doesn’t include jokes made at the expense of others.

Although it’s aimed at making us feel more comfortable ourselves, this form of humor can work in some workplace situations. When feelings are running high or you’re faced with a challenging team member, self-enhancing humor can help you regain control, leaving space for more constructive conversations.

2. Affiliative

Humor that is designed to enhance our relationships with other people falls into this category, which includes jokes that aim to reduce conflict, make others feel better, and create a sense of connection.

On a group level, we can also use affiliative humor to raise morale, increase group cohesion, and lighten the atmosphere. For team leaders, this form of humor has obvious benefits. It is positive and benign in nature, aimed at making everyone feel part of the group.

Any member of a group can use this form of humor. However, it is often down to you as the leader to set the tone for the rest of your team. Modeling affiliative humor yourself creates a lighthearted atmosphere where others feel comfortable enough to join in.

3. Self-Defeating Humor

When you make yourself the butt of the joke or speak self-deprecatingly to make others laugh, you’re using self-defeating humor. It can be a defense mechanism, designed to hide your true feelings. But it can also be used to gain approval from others.

Used sparingly, this form of humor can be surprisingly beneficial in the workplace. One study found that leaders who occasionally used self-defeating humor with their employees were more respected. Their team members also felt more loyalty to them and rated their contribution higher.

However, it is possible to overdo this form of humor. When we constantly put ourselves down, it can start to undermine us in the eyes of both our team members and people higher up in the organization. Plus, using this form of humor too often can make us see ourselves in a more negative light, instead of being willing to stand by our achievements.

4. Aggressive

A final form of humor defined by Martin is aggressive humor. Where self-defeating humor is aimed at putting yourself down, aggressive humor turns outwards and pokes fun at other people. Although it is often presented as being playful or light-hearted, the effect of this form of humor is to belittle and ridicule others.

Sarcasm, teasing, and ridicule all fall into this category. They might make others laugh, but they usually make the person at the center of the joke feel small and uncomfortable.

Where relationships are close, strong, and respectful, the occasional sarcastic comment might not have a detrimental effect. We’re almost all guilty of resorting to sarcasm at times. But when sarcasm is your main form of humor, it can damage your relationships and cause issues with team members.

A study conducted by Singapore Management University looked at how leaders’ use of different forms of humor affected their teams. When leaders used aggressive humor, their teams’ relationship and work engagement suffered. It also created an atmosphere where employees were more likely to perform negative behaviors.

Using Humor Effectively at Work

Martin argued that the first two forms of humor are beneficial – they concentrate on enhancing our relationship with ourselves and others. The second two are potentially harmful. In the case of self-defeating humor, it can be detrimental to our own image. Meanwhile, aggressive humor can be damaging to other people.

It’s probably clear immediately that using aggressive humor in the workplace isn’t the way to go. Effective leadership means building people up, not tearing them down.

It should, hopefully, also be clear that this still applies to humor that targets groups of people instead of individuals. Sexism, racism, homophobia, and ableism are unacceptable in any business – disguising them as humor doesn’t make it any better.

So, while the occasional self-deprecating comment can improve your relationship with your team, most managers will want to cultivate a sense of humor that focuses on the first two types – self-enhancing and affiliative humor.

These positive forms of humor are the ones that build relationships, improve performance, and relieve stress. As a leader, you can model this type of light-hearted banter and make it clear that jokes at other people’s expense are off-limits.

Humor can be a fantastic leadership tool, helping you keep your team connected, motivated, and productive. However, there’s a balance to strike to be successful. Focus on humor that builds relationships and leave the teasing and sarcasm at the office door.