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What is informal communication? (With examples)

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 informal communication

As technologies and business practices have developed, so have the different methods of interacting within the workplace. Informal communication has therefore become more commonplace in the modern working environment, presenting opportunities for discussions and idea sharing outside of structured formats like meetings, letters and emails.

In this article, we’ll be exploring the various types of communication in the workplace, the differences between formal and informal communication, and how you can use these methods to promote collaboration. We’ll also highlight some of the drawbacks of this type of communication, and share some informal communication examples that you can use to create a positive, productive workplace.

What is informal communication?

Informal communication refers to methods of sharing information that fall outside the formal channels like meetings and memos that are typically used within a business setting. It could be spoken, written or even conveyed through body language, and can take place in person, such as a casual chat during a break, or online via social media or instant messaging.

These forms of informal conversation in the workplace can play an important role in nurturing relationships and developing creative solutions to business problems. By removing the structure and expectations of formal workplace communication, it can help people to feel more comfortable sharing their ideas. However, it’s important to be aware of the associated risks, which include the spreading of misinformation and a lack of accountability, and strive for a good balance of formal and informal communication.

Types of informal communication

There are various different types of informal communication that can be identified in the workplace. These are the routes by which information travels through the organisation, and could take place online, in person, or through a combination of the two. They can also involve a vertical flow of information, from senior to junior staff and vice versa, or horizontal, between individuals at the same or similar level.

Single-strand chain

A single-strand chain refers to when information is shared from one person to another on a one-to-one basis. For example, employee A could share a piece of information with employee B, who then shares it with employee C, and so on. Single-strand chains are more effective the shorter the chain, as it reduces the risk of individuals misinterpreting the communication and passing on inaccurate information.

Cluster chain

Cluster chains involve one person sharing information with a group, and the members of the group passing on this information to other groups. This could be a sales department manager sending an email detailing the latest sales figures to their individual team members, who in turn share this data with members of the marketing department. Cluster chains can spread information very quickly, and are particularly effective for organisations with a hierarchical structure.

Gossip chain

A gossip chain occurs when one person shares a piece of information within an established group. An example would be an employee sharing the outcome of a client meeting in an informal conversation during their lunch break. Gossip chains can easily cross hierarchical or departmental divides, resulting in less siloed information. However, as they revolve around groups that not all members of the workforce are able to access, they can also lead to resentment.

Probability chain

In a probability chain, information is shared between individuals and groups on a random basis. A person might put up a notice on a shared bulletin board about a staff night out after work at the end of the week, without knowing who will see the note and when. Probability chains don’t rely on pre-existing workplace relationships, making them a great way for employees to form new relationships. However, they’re a less reliable method of sharing information.

Differences between formal and informal communication

The most obvious difference between formal and informal communication is the intended outcome of the information sharing. It’s fairly easy to see that a regularly scheduled business meeting isn’t the same as a casual conversation during a coffee break. However, there are more nuanced differences between formal and informal communication that are important to understand.

While most formal communication tends to be business related and structured in a format that allows all relevant parties to be included, informal communication can be about a variety of topics, and doesn’t follow organisational protocols. This means that information can flow quickly and more freely, unlocking departmental silos and avoiding the need for time-consuming preparation processes such as drafting a presentation.

Informal communication examples

Let’s explore some informal communication examples and the roles they play in the workplace.

Face-to-face conversations

Face-to-face conversations are perhaps the most common method of communication between colleagues. They can take place either inside or outside the workplace, and can cover both work-related and personal matters. This form of communication is a great way to build interpersonal relationships and resolve conflicts, as it provides additional cues such as tone of voice and body language that support clear communication. However, face-to-face conversations can be distracting if they’re not managed well.

Coffee and lunch breaks

Similarly, informal conversations that take place during coffee and lunch breaks – sometimes known as watercooler chats – can help to create a positive working environment. While these exchanges take place in person, they occur when employees are taking a short break and therefore tend not to be work related. These chats can help to build relationships between employees who wouldn’t ordinarily spend much time together during the workday, facilitating the sharing of ideas and information between different departments.

Instant messaging

As technology has become more prevalent in the workplace, instant messaging platforms such as Skype, Slack and Microsoft Teams have become common tools for both formal and informal communication. By allowing employees to send and receive messages in real time, they support greater productivity and collaboration, particularly within organisations that use a remote or hybrid working model. As with face-to-face conversations, instant messaging can become a distraction and is harder to police than a noisy conversation between deskmates.

Social and team-building activities

Whether for team building, as part of a celebration following the completion of a project, or simply to boost morale, activities that take place outside of the workplace can also facilitate informal conversation. They help to create a sense of community, and can break down barriers between departments and hierarchies, supporting stronger relationships in the workplace. However, they can be costly and time consuming, and aren’t always accessible to or enjoyed by all employees.

5 Benefits of informal communication

Unlike formal communication, which follows specific structures and protocols, this type of communication allows for a more relaxed, open exchange of ideas. This can lead to numerous benefits for both businesses and employees.

1. Builds stronger relationships

It helps build stronger relationships by creating a friendly and approachable atmosphere. These more spontaneous interactions play a vital role in business environments, helping to bridge gaps between employees and contributing to a more cohesive workplace culture. This leads to better team dynamics, increased trust, and a level of mutual comfort that makes employees more willing to share open feedback.

2. Encourages collaboration

Informal conversations often spark creative ideas and facilitate quick problem solving, encouraging collaboration among employees. For businesses, this means that teams work more efficiently, often finding innovative solutions to challenges. This collaborative environment also benefits employees by allowing them to contribute their ideas freely, engage in team efforts and feel valued for their input.

3. Enhances employee engagement

This communication can enhance employee engagement by allowing individuals to express themselves more freely and connect on a personal level. Engaged employees are more productive, motivated and loyal, leading to increased engagement and retention rates. For employees, being part of an engaging work environment boosts morale and job satisfaction, both of which contribute to their overall wellbeing.

4. Promotes a positive working environment

Encouraging informal conversation can help to create a positive working environment where employees feel supported and valued. This results in a more motivated workforce with lower turnover rates, helping businesses to save money on staff engagement and retention initiatives. In turn, employees benefit from a workplace that feels inclusive and supportive, which can reduce stress and increase overall job satisfaction.

5. Increases transparency

It can increase transparency within a business by facilitating open dialogue and making information more accessible. This supports quicker decision making and helps to nurture a more informed workforce. By being kept in the loop, employees feel valued and better aligned with broader organisational goals and strategies.

Drawbacks of informal communication

While beneficial in many contexts, informal conversations can sometimes undermine the clarity, consistency and professionalism expected in a business setting. Understanding these downsides is essential for balancing formal and informal communication in the workplace.

Lacks structure and traceability

One significant drawback of this style of communication is its lack of structure and traceability. This can lead to challenges in maintaining accurate records of decisions or agreements made during casual conversations, which could prove WHAT further down the line. Employees may also struggle to recall specific details, which can affect accountability and the consistency of information.

Risks miscommunication

Informal conversation often lacks the clear boundaries and precise language of formal dialogues, increasing the risk of miscommunication. These casual exchanges can lead to confusion or conflicting interpretations, which can negatively impact workflows, jeopardise projects or WHAT customer interactions.

Fosters gossip and rumours

Another downside of this type of communication is its potential to foster gossip and rumours. This can harm workplace morale and trust, creating a toxic environment that disrupts productivity and damages team cohesion. Employees may find themselves caught in unnecessary conflicts or feeling mistrusted due to unverified information spreading through informal channels.

Results in uneven information sharing

Spontaneous conversations often exclude key individuals, particularly with gossip chains and probability chains where no formal hierarchy is followed, causing inefficiencies and gaps in knowledge. Additionally, employees may feel left out or undervalued if they aren’t included in these informal discussions, potentially impacting their engagement and sense of belonging.

Impacts professionalism

While this type of communication an create a relaxed atmosphere, it can also blur the lines of professionalism. Employees may inadvertently cross boundaries or engage in conversations that undermine their reputation, impacting their career progression and relationships at work. For businesses, this may affect the organisation’s image and the perceived reliability of employees.

How to balance formal and informal communication

Balancing formal and informal communication is essential for creating and maintaining a productive, positive workplace. While formal communication ensures that important information is shared systematically and professionally, informal communication fosters stronger relationships, encourages collaboration and boosts employee morale.

Some tips for striking the right balance include:

  • Establish clear guidelines for when to use formal and informal communication.
  • Use HR management tools to facilitate and track both types of communication.
  • Set up regular formal meetings alongside casual team check-ins.
  • Create designated physical and virtual spaces for informal interaction.
  • Encourage an open dialogue in formal settings such as meetings.
  • Document key takeaways from informal conversations to maintain clarity.
  • Provide training on communication etiquette and appropriate contexts.
  • Highlight positive informal communication examples to encourage best practices.

Support healthy workplace communication with PeopleHR

As we’ve seen, there’s a place for both formal and informal communication in the workplace. However, it’s important to understand the positives and negatives of both methods, and how to encourage the most effective and appropriate form of communication for individual circumstances.

By leveraging HR management tools, you can create an environment that supports both communication styles, enhancing overall efficiency and increasing employee satisfaction.

Find out how our HR software can help you to better manage communication in your workplace by booking a free demo, or getting in touch with our experts.

Gareth Moss
By Gareth Moss New Business Sales Team Leader

Gareth Moss is a New Business Sales Team Leader with nearly a decade of experience in the Access PeopleHR product. Gareth specialises in serving those within the SMB market, and his passion lies in helping businesses streamline their HR operations. Before transitioning into his current role, Gareth was a HR software product trainer, making him your ‘go to’ guy for all things PeopleHR.