Management Tips: Lead with Humour

Think about the last time a bit of laughter lightened up your workday. Humour in leadership isn’t just about a quick laugh; it can shift a team’s entire mood, build stronger connections, and turn stress into something manageable. When leaders bring humour to the table, they create a culture where people feel comfortable, valued, and motivated. Research shows that a humour-friendly workplace boosts job satisfaction and can even impact employee retention and performance in significant ways.

As neuroscientist Sophie Scott puts it, “Laughter is a subconscious signal that we’re in a state of relaxation and safety.”  

That feeling of safety can make a huge difference in the workplace, especially when it’s tied to leadership style. Studies have also found that leaders who use humour appropriately are often perceived as more competent and confident, which can increase morale and make employees more receptive to feedback.

For those interested in developing a humour-friendly leadership style, identifying your natural humour style is a great first step. Tools like the Humour Style Questionnaire (HSQ) or Banana Life’s Humour Language Quiz can help you determine how you connect through humour and how best to use it to foster team cohesion. This approach enables leaders to adapt their humour style to suit different situations and personalities, creating a more inclusive and engaging work environment.

Let’s dive into how leaders can use humour effectively to foster trust, manage stress, and keep the team motivated.

1. Boost Retention and Loyalty Through Humour

Employee retention is a challenge for many organisations, but a workplace that values humour has a clear advantage. Leaders who use humour to ease tension create an inclusive, positive work atmosphere where people feel connected and supported. Research reveals that affiliative humour—friendly, inclusive humour—is particularly effective in reducing stress and improving group cohesion. When employees feel part of a supportive culture, they are more likely to stay, reducing turnover and enhancing team loyalty.

Adrian Gostick and Scott Christopher, authors of The Levity Effect, say it well: “When leaders lighten up and create a fun workplace, there is a significant increase in the level of employee trust, creativity, and communication – leading to lower turnover, higher morale, and a stronger bottom line.” This means humour isn’t just about boosting morale; it’s a strategic tool for building loyalty.

2. Build Trust and Openness with Authentic humour

Humour can be a great equalizer, bridging gaps and making leaders seem more relatable. Leaders who use humour thoughtfully create an environment where people feel safe to be themselves and even share a laugh with the boss. Authentic humour releases oxytocin, often called the “bonding hormone,” which strengthens team connections. Leaders who use humour genuinely—not as forced jokes—often find that employees respond with increased trust and respect.

Even if humour doesn’t come naturally, a manager can ease into it by keeping communication relaxed and relatable. Sharing small, relatable anecdotes or mishaps shows humility and makes the workplace feel welcoming. This approach encourages openness and creates a supportive culture where employees feel valued.

3. Use Storytelling to Engage and Motivate

Storytelling paired with humour has the power to inspire teams and keep their attention. Leaders who use engaging, humourous stories make goals more memorable, tapping into dopamine’s effects on memory retention. This approach motivates employees by giving them a clear, enjoyable vision of shared goals. Research further shows that humour boosts creativity and productivity by encouraging open communication, which helps teams approach goals with a positive mindset.

Consider framing team goals as part of a shared story: “Imagine us all celebrating after that big project, proud of what we accomplished and ready for the next challenge.” Adding humour to these scenarios makes the vision feel real and within reach, sparking team motivation and commitment.

4. The Right Kind of Humour Matters

Not all humour lands the same way. Inclusive humour brings people together, but sarcasm or teasing can quickly hurt feelings and damage morale. Leaders who effectively use humour adapt to the context, understanding when light humour can enhance a meeting versus when it might feel inappropriate. This approach, often called affiliative humour, unites teams while respecting individual sensitivities.

If humour isn’t natural, observing the team’s humour style and using light, universally relatable humour—such as funny but non-targeted observations—can help ease managers into a more conversational approach. Simple, small acts like playful team challenges or humourous awards for achievements can create moments of laughter without putting anyone on the spot.

5. Reducing Stress with Humour-Based Team Activities

Workplace stress is no small thing, and humour is one of the best tools to counter it. humour reduces cortisol levels (a stress hormone) and increases endorphins, helping people feel more relaxed and energized. humour-based team activities, like those offered by Banana Life, bring employees together, helping them bond and decompress. Research supports that shared humour acts as “social glue,” increasing group cohesion and reducing stress.

For example, a humour-focused activity like a virtual escape room can bring employees together in a lighthearted, fun setting. Shared laughter in these settings fosters connections, reduces tension, and contributes to a more positive workplace culture. One Banana Life client noted that after incorporating humour-based activities, they noticed higher employee engagement, fewer absences, and overall greater job satisfaction.

Bring Humour into Your Leadership Style

For leaders aiming to create a positive and resilient workplace, humour is essential. It helps reduce stress, builds trust, and boosts morale, making a lasting impact on retention, engagement, and overall job satisfaction.

If you’re interested in leading your team with an infusion of humour, encourage them to take our Humour Language Quiz. This tool allows both leaders and team members to discover their unique humour styles, fostering a deeper understanding of how each person connects through humour. With these insights, you can make humour an effective, unifying element in your leadership approach and team culture.

Ready to lead with a lighter touch? 

Explore Banana Life’s customised humour-based team-building events to bring more laughter and connection to your workplace.

For more on creating a humour-infused workplace, reach out to us at hello@bananalife.com.au.

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