by Andy Shen

Created on: November 12, 2008   Last Updated: November 02, 2010

Rumors. Gossip. Speculation. Sure, every organization has a little water-cooler chit-chat; it's just basic human nature. But as a leader, you know it's best to ignore the endless stream of gossip, right?

Think again.

Unfounded speculation negatively impacts your bottom line. Therefore, savvy managers should understand the pitfalls of gossip, and learn steps for avoiding the gossip trap. Let's begin with the following situation assessment.

WHAT'S CHANGED?

Certain developments in today's business environment make it unwise to turn a blind eye to workplace buzz. Here are the macro trends:

* Unstoppable communication:

No longer just a whisper in the copy room, today's gossip comes in the form of electronic messages capable of reaching everyone, everywhere, instantly. The downside becomes evident when inaccurate messages reach unwanted audiences. As the proverb goes, one cannot un-ring a bell.

* Anonymous messaging:

A decade ago, most electronic messages were in the form of emails sent from known authors. Traceability drove accountability. Today, anonymous comments commonly appear on message boards, in chat rooms, and on blogs. Therefore, messages circulate which are largely inaccurate and unverified.

* Economic uncertainty:

The din of the rumor mill grows louder during periods of market fluctuation. Employees become concerned about the stability of their business unit, triggering spontaneous discussions about reorganizations, layoffs, mergers, and shutdowns. While some amount of worry is understandable, much of it is baseless and, therefore, counterproductive.

* Disbursed team members:

Increasingly, employees are stationed away from their team. With the growing prevalence of telecommuting and electronic connectivity, more employees find themselves far removed from the company pulse, left to wonder which way the wind is blowing. This environment fuels speculative gossip.

* Legal considerations:

Gossip can take the form of a typed message about an employee. If that message appears hurtful, makes the employee feel uncomfortable, or suggests an environment of harassment, it could become part of a subsequent legal challenge.

HOW GOSSIP HURTS THE BOTTOM LINE:

There are three increasingly severe levels of gossip affliction:

LEVEL 1:

REDUCED EFFICIENCY.

Working amidst a day-to-day culture of gossip is like facing a headwind. A team cannot achieve functional excellence if its members constantly experience:

- Broken concentration

- Wasted time

- Legal distractions

- Negative

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