What is informal communication?

Chatting by the watercooler or WhatsApping your team? Then you’re using informal communication. As a natural, unstructured way of catching up with the people you work with, informal communication has a firm place within any business- but can too much damage your organisation?

In this post, we cover the ways informal communication can help – and hinder – the way you run your business.

What is informal communication?

What's the difference between formal and informal communication?

What are the different types of informal communication?

How can informal communication benefit a business?

Can informal communication be harmful?

Does informal communication have any benefits?

How can a business balance informal and formal communications effectively?

What is informal communication?

Informal communication refers to any type of communication that doesn’t take place using the formal methods or structures in a company.  It can be spoken, written or even conveyed through gestures and body language. 

Unlike a one-to-one or intercompany meeting, informal communication covers the chats, notes and asides we share with one another outside of these formal settings.

Effective communication is key to business success and there are times when one informal communication method is better than another. Communicating successfully is all about getting the right balance and knowing which to use in every type of situation.

What’s the difference between formal and informal communication?

Now that we’ve looked at what informal communication means, it helps to understand how it compares with formal communication and why both matter.

Formal communication uses official channels. It includes company updates, meeting agendas, policies and performance reviews. These are structured, documented and usually shared from leadership or HR.

Informal communication is more relaxed. It happens during casual conversations, quick chats on Slack or a friendly catch-up in the break room. These everyday moments help build trust and make it easier to share ideas.

Both types of communication support your business in different ways. Formal channels provide clarity and consistency. Informal conversations build connection and encourage collaboration. The key is knowing which approach suits the situation.

What are the different types of informal communication?

There are countless forms of informal communication and as technology progresses these are increasing further. While your employees will be using these communication channels to share business critical updates and information, there’s a good chance that they’re also being used for more mundane information such as “whose turn is it to make the tea?” 

Common examples of informal communication

Conversations
Whether in a corridor, during a coffee break, or on your way to the bus stop after work, casual conversations are a big part of workplace culture. They're a chance to check in, share updates, or just build rapport.

Phone calls
A quick phone call often clears up more than a long email thread. These informal conversations are especially helpful for remote teams, where tone and clarity matter. As long as it's not a scheduled conference call or where you are covering a pre-agreed agenda, it's likely informal.

Instant messaging
From WhatsApp to Google Chat, instant messaging platforms make it easy to check in, share quick updates or say thanks. A manager dropping a “great job today” message is a small gesture, but it keeps morale high. This style of communication is especially popular with younger employees.

Project boards
Collaborative tools like Slack, Monday and Basecamp rely on informal communication to keep work flowing. Quick updates, tags and comments help teams stay aligned without the need for formal check-ins.

How can informal communication benefit a business?

Without informal communication, our working lives would feel stiff and unfriendly. It’s the informal catch-ups and interactions that glue your business together. They help new employees onboard more quickly, help distribute information more easily and spread the norms and behaviours that are part and parcel of your way of working.

Here are some of the ways informal communication can make running a business easier:

Informal communication can mean better quality feedback

Stiff feedback sessions and formal feedback forms can leave employees uncharacteristically quiet. By catching up with your team informally, you can get a better sense of the big issues and learn what your employees really think. Informal conversation can prompt employees to feedback about something that they may otherwise have kept to themselves. Issues that wouldn’t have otherwise come to light can then be dealt with.

Informal communication can support your performance management process

The formal nature of performance management can feel daunting, which is where an informal approach can help. If an employee is not meeting the required standards, or is frequently late, an informal chat can often solve the problem. Simply having a quiet word with someone can help to press home a point that doesn’t need to be made formally or be put on the record.

Informal communication builds relationships

It’s very difficult to build strong relationships when the only dealings you have are formal. That’s why social interactions, such as a quick catch up in the kitchen or a comment in passing, can help build rapport within your business.

Informal communications can be integrated into more formal situations. A friendly chat is a great way of breaking the ice at the start of a formal meeting. We all have individual preferences when it comes to communication style. Some people will actually perform better if given the opportunity to take part in more informal communication initially.

Informal communication can enhance your reward & recognition programme

As much as a formal thank you is necessary, it’s the informal praise and encouragement that keeps your team going day to day. From a quick thank you for all your hard work at the end of a tough day to a Kudos mention, using informal communication to recognise your staff’s efforts will give everyone a warm and fuzzy feeling.

Informal communication can increase innovation

Informal communication can create a collaborative environment that’s more innovative and creative. It encourages an interchange of ideas, feelings and opinions that can generate a team spirit and a sense of inclusion for staff.

Can informal communication be harmful?

For all that informal communication is friendly and relaxed, you can’t rely on it for everything. Every business needs structure if it is to thrive. The informal communication network that exists in a workplace is often termed “the grapevine”. This is when colleagues chat or gossip about what’s going on in the company.

Here’s why you mustn’t rely too much on informal communication:

It’s difficult to record informal communication

Informal communication is often undocumented. This means you can’t rely on it in the same way as formal communication. For example, if you ask another member of staff to do something for you, yet on following up with them you discover that they haven’t done it, there is no proof that the conversation took place. Taking a more formal approach such as email, may have seen a different result.

Informal communication can cause misunderstandings

Due to its spontaneous nature, informal communication can be taken the wrong way. Whether someone is rushing, distracted or caught at the wrong time, the message may not be articulated as clearly as would be the case in a more formal situation. This is especially the case with instant messaging and updates on project boards.

Informal communication can limit productivity

Due to its spontaneous nature, informal communication can be distracting. From stopping someone for a quick chat to sending instant messages that need an instant response, informal communication can limit your team’s productivity if not managed properly

Informal communication can lack accuracy

Informal communication isn’t always reliable. Messages can easily get distorted as they’re passed along, and before you know it, exaggerated or incorrect information starts to circulate. Staff may end up trusting the gossip rather than the official updates, especially if they feel they aren't getting the full picture.

For example, if someone hears about a potential business change, like redundancies, the news might travel quickly even if it's unconfirmed. And while this might be alright when sharing good news, like Susan's upcoming wedding, some updates are better handled more carefully.

Informal communication can damage inclusivity

Although informal communications can help share information freely, if left unchecked it can leave people out. Employees who work part time hours or remotely may get left out of updates and feel that they’re somehow second-class employees as a result. Likewise, employees who are new to the business or who simply don’t have the same social networks as other employees may find themselves less informed.

The drawbacks of the grapevine

The grapevine isn’t something that can be controlled by the board or the senior management team. News can spread very quickly and employees will often take it at face value, believing it to be true. Staff may prefer to believe the gossip rather than the official communications from management. They may not deem the official versions to be quite the full truth, or may think they are only being told what the directors want the staff to hear.

Of course, when the rumour mill really starts to get into gear, the message itself may change or become distorted as it passes from person to person. More than just speculation and gossip, the message being passed on can actually turn into outright untruths and false rumours, fuelling anxiety and creating tension or conflict.

How to shut down false rumours

You can counter the grapevine communications and the rumour mill with frequent and open communication. The grapevine helps employees by giving them the information they crave. If you’re the one supplying it in the first place, then the grapevine will cease to deliver what staff want from it.

Does informal communication have any benefits?

Of course, informal communication is not always bad. When it’s not centred on false rumours, there can be some positive effects to come out of informal chats and interactions between colleagues.

Informal communication encourages an interchange of ideas, feelings and opinions that can generate a team spirit and a sense of inclusion for staff. It can also drive innovation in business.

Social interactions, such as a quick catch up in the kitchen or a comment in passing, can help build trust and make it easier to get to know your team. Even conversing with staff about business issues, in a professional manner, can be used for informal communication. 

Conversing with employees in this manner goes largely undocumented. It is useful for giving encouragement, or praise for a job well done. 

Informal communication in disciplinary situations can also be of great use. If an employee is not meeting the required standards, or is frequently late, an informal chat can often solve the problem. Simply having a quiet word with someone can help to press home a point that doesn’t need to be made formally, or be put on the record.

Informal conversation may also prompt employees to feed back about something that they may otherwise have kept to themselves. Issues that wouldn’t have otherwise come to light can then be dealt with.

Although it’s difficult to discern the absolute veracity of what comes from the grapevine, much of it stems from an initial grain of truth. If the rumour is bad news, then the grapevine can actually be of some help in giving staff a heads up about it and therefore some time to adjust before an announcement is officially made.

While the grapevine is not always a bad thing, it’s important to be sure that you are not contributing to the rumours yourself by saying things in the wrong way. The way you communicate is critical and has a profound effect on how your employees feel and react. 

How can a business balance informal and formal communications effectively?

The key to balancing formal and informal communication is being intentional about what you share, and how. Start by agreeing what needs to be communicated formally - things like business updates, meeting invites and performance ratings. Then give managers clear guidance on when and how to use informal communication, whether that’s sharing feedback, giving praise, or having a quiet word.

It’s also helpful to have a simple way to follow up these informal moments, like capturing key points in a one-to-one, so nothing important slips through the cracks.