Humor in the Workplace: A Social Tool with a Double-Edged Effect

Humor may seem harmless at first glance. A laugh by the coffee machine, a joke during a team meeting, a lightened atmosphere. But in reality, humor is a powerful social tool that can strengthen connection, boost creativity and increase our resilience to stress. At the same time, humor can also be a subtle source of conflict, exclusion and power games.

For instance, humor can strengthen social bonds when it is used in a generally trusting, supportive and fair environment. On the other hand, person-directed humor in an atmosphere lacking trust can become offensive, as it creates insecurity and a sense that humor is being used to put others down.
– The Danish Working Environment Authority

This duality makes humor something leaders, colleagues and culture carriers should actively reflect on.
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Benefits of Humor in the Workplace

Humor acts as a social glue, strengthening relationships and creating a sense of connection among colleagues. When coworkers laugh together, it fosters a shared sense of belonging that can improve collaboration and increase trust.

Positive effects of humor at work:

• ‍Strengthens relationships:
  Laughter helps form a shared identity and reinforces social bonds. When we laugh together, we feel more connected. You might recognize the idea of an “inside joke” – something only a few people understand, tied to a shared experience. Inside jokes can enhance team cohesion, because they create a feeling of closeness with those we share them with. But be mindful that they don’t become too exclusive, which could alienate others.
  
  Learn more: Become a good relational leader
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• Reduces stress:
  Humor can serve as a coping mechanism to help manage stress and frustration. Laughing releases endorphins, the body's natural feel-good chemicals. This makes humor a valuable tool for lifting team morale in tense situations and shifting heavy energy in a more positive direction.
  Read about the IGLO model: A holistic approach to stress prevention in your organization
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• Improves well-being and motivation:
  A meta-analysis by Jennifer Aaker and Naomi Bagdonas (LSE Business Review) across 49 studies found that workplace humor is positively associated with employee satisfaction, team cohesion and employee health. The analysis also showed that humor can effectively reduce burnout and stress, suggesting that it benefits not only teams but individuals as well.
  For example, a weekly team meeting that includes light-hearted self-irony and shared laughter over mistakes can make a tight deadline feel less intimidating.
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Irony and Sarcasm: The Line Between Clever Humor and Harmful Jokes

In Denmark, irony is almost a national sport. It's embedded in the language, tone and culture. But for that very reason, we often overlook how quickly it can cross the line and become damaging.

So what’s the difference?

• ‍Irony is typically used to highlight something absurd or contradictory, often with a playful tone. It is not instinctive, but a complex linguistic and social skill developed gradually through social interaction and empathy. Cognitive psychology research shows that understanding irony requires holding two layers of meaning in mind – what is said and what is meant – activating areas in the prefrontal and temporal regions of the brain. Studies indicate that children only fully grasp irony around ages 5 to 7, and that this ability is closely linked to empathy and interpreting others’ intentions.
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• Sarcasm, on the other hand, tends to be more aggressive and is often used to take a jab at someone, disguised as a joke. It involves a complex mix of language processing, social context and emotional perception, which can make it hard to interpret. Neurological studies show that understanding sarcasm activates the right hemisphere of the brain, especially areas involved in social cognition and theory of mind – the ability to understand others’ perspectives and intentions.

As danish linguist Ole Togeby puts it, irony targets the action, idea or statement, while sarcasm typically targets the person. It is more personal and therefore a slightly riskier route when trying to be funny at work.

Learn more: 3 tools leaders can use to create psychological safety

In an open and trust-based team, irony can be a gift. But in less safe environments, even subtle irony can be misunderstood as mockery. This is especially true in multicultural workplaces, where not everyone shares the same humorous codes. We must remember that irony and sarcasm are deeply embedded in the Danish DNA, and many of us naturally find it funny. But not everyone shares the same humor or attitude, and we need to be mindful of that if humor becomes a regular part of the workplace culture.

Disadvantages of humor in the workplace

Humor is not always inclusive. It can also become an invisible barrier that excludes people who either don’t understand the joke or weren’t present when it originated. It may start out harmless – inside jokes, sarcastic comments toward a colleague, or “just for fun” remarks – but over time, it can become a form of microaggression. Some employees may end up feeling excluded or ridiculed.

Signs that humor has become exclusive:

• One or a few individuals are consistently the target of jokes
• Some people always laugh, others never do
• Humor reinforces hierarchies or stereotypes, and some use humor to position themselves above others

Research from the National Research Centre for the Working Environment shows that so-called "hidden bullying" often begins within the humorous layer, which can lead to stress, isolation and absenteeism.

The backstory: Humor as power and resistance‍

Humor has historically served both as rebellion and as reinforcement of order. Philosophers like Montaigne and Kierkegaard used humor to challenge power, morality and religious dogma. The same applies in the workplace today. Humor can either break down hierarchies or reinforce them.

Research from CBS and Lund University (Karlsen & Villadsen, 2013) shows that leaders use humor strategically. Either to strengthen a sense of community or as a subtle exercise of power. For example, a self-deprecating remark from a manager can build trust in a safe team environment, but come across as sarcastic and condescending in an unsafe one.

Westwood and Johnston (2013) point out that humor can both cover up tension and serve as resistance. This makes humor a double-edged figure in organizations – both disarming and reinforcing at the same time.
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How to use humor the right way

It’s not about removing humor entirely, but about using it thoughtfully. Here are five practical tips to help you do just that:

Five tips for intentional workplace humor:

1. ‍Read the room: Assess whether your humor fits the mood and the relationships.
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2. Share the humor, not the target: Stick to shared references instead of making someone’s mistake the punchline. A good rule of thumb is that humor is not welcome if it comes at someone else’s expense.
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3. ‍Be mindful of language and culture: International collaboration requires translation – especially when it comes to humor. Different cultures and beliefs mean we don’t all share the same understanding of what’s funny and what’s not.
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4. Set the tone: Leaders should define what respectful humor looks like and help uphold it in the team with a clear focus on inclusion.
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5. Evaluate the effect: Ask yourself and your team: Does our humor feel safe and inclusive? Imagine a new colleague joining the team – would they be able to laugh along and understand your in-jokes within the first few days? If not, you might want to reconsider whether the internal humor has become too exclusive and difficult for others to access.

Learn more: Employee satisfaction that pays off – how to get there

Humor shouldn't be sterilized but cultivated to have the greatest impact. As social beings, humor plays a big role in how we interact, form bonds and create shared language. That’s why it’s important not to remove it from the workplace but instead use it with intention and care.

Are you unsure whether your team’s humor is hurting the work environment?‍

We’re happy to help you assess your organization’s level of psychological safety in a short and informal conversation – get in touch here.

Workplace humor isn’t dangerous – but it is powerful. It shapes relationships, atmospheres and boundaries. The most important thing you can do is not to censor yourself, but to be curious about how your humor affects the room and the atmosphere it creates.
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FAQ: Humor in the workplace

When is humor inappropriate at work?
When it repeatedly harms, excludes or creates discomfort for one or more team members.

Is sarcasm always a bad thing?
No, but it requires a high level of trust and mutual understanding to work well.

How do I know if my humor is working?
Watch the reactions: laughter, silence, avoidance? Humor is real-time social feedback.

Is humor necessary for employee well-being?
Not a requirement – but it’s a strong catalyst for well-being, creativity and connection when used effectively.

Can you train workplace humor?
Yes. Through feedback, reflection and clear norms, humor can become a valuable social skill.