The Whisper Network: How gossip impacts mental health at work

It starts out small. A side comment in the lunchroom. A glance exchanged during a meeting. A quick message that begins with, “Did you hear…?”

Before you know it, the office is buzzing with theories. Someone’s up for a promotion, someone else made a mistake, and everyone seems to know just a little bit more than they should.

Gossip. We’ve all encountered it, and let’s be honest, we’ve probably all participated at some point. It’s as old as human conversation itself. But in today’s workplaces where connection and mental wellbeing matter more than ever, the way gossip flows can say a lot about the culture we work in and how we feel showing up to it.

So, what is gossip, really? Is it always harmful? Can it ever be helpful? And how does it actually affect our mental health?

Let’s take a closer look.

Say “gossip” and the mind jumps to whispers in the hallway, a bit of stirring over lunch, or news that somehow everyone knows but no one officially shared. Still, not all gossip is scandalous or harmful. The most common definition of gossiping is people talking about other people when they’re not around.

Anthropologist Robin Dunbar famously argued that gossip is a form of “social grooming.” In prehistoric times, as tribes grew larger, grooming one another physically became inefficient. Talking about others helped humans build trust, define norms and make sense of social dynamics.

In modern workplaces, gossip can take many forms:

Not all gossip is created equal. The content, intent and context all matter. But even when the words seem harmless, the effects on mental health can be surprisingly significant.

For those on the receiving end, or simply caught in its orbit, negative gossip can trigger a cascade of emotional stress. Anxiety, feelings of exclusion and a deep sense of insecurity often follow.

According to Safe Work Australia’s 2024 report, mental health conditions made up 9% of all serious workers’ compensation claims in 2021–22. Of those, nearly 28% were linked to work-related harassment or bullying. While not every rumour or side comment rises to the level of bullying, ongoing gossip can mimic the same patterns: exclusion, ridicule and emotional strain.

Even just the fear of being talked about can take a toll. In workplaces where gossip thrives, people often withdraw, hold back ideas and start second-guessing themselves not because they lack capability, but because they feel psychologically unsafe.

In essence, negative gossip doesn’t just talk about people, it slowly wears down people.

But here’s the twist: gossip isn’t inherently evil. Used mindfully, it can reinforce social bonds, uphold shared values and boost morale.

Imagine two colleagues chatting over lunch, raving about how their teammate handled a difficult client with grace. That kind of positive gossip doesn’t just flatter, it also reinforces what good work looks like.

In a study published in the journal Psychological Science, researchers found that gossip, even about rule-breaking, can play a regulatory role. When someone shares a cautionary tale (“Did you hear what happened when they skipped safety protocol?”), it can actually reinforce group standards and ethical behaviour.

The key is intention and tone. Are we connecting or excluding? Elevating or eroding? Telling stories or spinning them?

Well, sharing stories about other people can actually deepen your understanding of how  humans think and act. It’s the kind of conversation that can spark empathy, making it easier to relate to someone else’s highs and lows.

According to social scientists, talking through these experiences helps build emotional intelligence by teaching us to pick up on feelings and respond in more thoughtful ways.

Gossip often functions as an informal communication channel within organisations, filling the gaps left by formal communication structures. While it can help people make sense of workplace dynamics, when it becomes the primary way information circulates, the consequences can be corrosive leading to mistrust, confusion and even legal risks. In fact, gossip has played a central role in several Fair Work Commission cases which highlights its impact on workplace culture and psychological safety.

Who gets included in gossip loops? Who gets left out? In many workplaces, gossip can subtly reinforce hierarchies, marginalise minority voices and perpetuate “in-group” vs “out-group” dynamics.

When employees feel the need to decode office politics through whispers, psychological safety suffers. People stop speaking up, creativity dries up and authenticity is replaced by guardedness.

As organisational psychologist Dr. Adam Grant notes, “Cultures are shaped by the worst behaviour leaders are willing to tolerate.” If gossip-fuelled toxicity goes unchecked, it becomes a cultural norm that stifles mental health, trust and performance.

Reining in gossip doesn’t mean shutting down every casual chat. People will always talk, and that’s not a bad thing. But there’s a big difference between healthy communication and hallway speculation. The goal is to create a workplace where people talk with each other more than about each other.

The way leaders communicate sets the standard for everyone else. And when they go quiet, the rumour mill fills in the blanks. Research from Federation University points out that when information is scarce, people turn to speculation. That’s when gossip grows legs.

Here’s how leaders can change the tone:

These are all part of the foundation for mentally healthy workplaces. As we outlined in our white paper, Mental Health Is Your Best Business Strategy, leaders who model openness and care help their teams feel safer, calmer and more connected.

It’s not all on leaders. Teams shape culture too, in group chats, side comments and the way people check in on each other when things feel tense.

Here’s what helps:

Mentally healthy workplaces are built day by day through small deliberate choices. Choosing to listen more, guess less and be generous with each other’s reputations is one of those choices.

Not every workplace gets communication right. If you’re in an environment where gossip is common, safeguarding your mental well-being becomes essential.

Here are some things you can do:

It’s natural to want to discuss work frustrations, but choosing the right time, place and person is extremely important. Setting personal boundaries and promoting open communication contributes to a healthier, more respectful workplace environment.

Humans will always talk about anything, about everything. We’re wired to connect, share stories and make sense of the world together. It’s not about silencing conversations but becoming more conscious of how we communicate.

Understanding the psychological drivers behind gossip can help us move from shame to insight. From whispering to wondering. From talking about problems to tackling them together.

Let’s build workplaces where the stories we share strengthen each other, not wear each other down.

The most powerful thing you can spread in a workplace isn’t gossip—it’s trust.

A healthier workplace culture doesn’t just happen, it’s cultivated through conscious choices and supported by the right tools. If your team is ready to move from whisper networks to open, supportive communication, Leora can help.

Leora’s mental health platform offers confidential, professional support for mental health, stress, conflict resolution and more.

Reach out to our team to learn more about how Leora can help you achieve a healthy workplace culture.