Way back in the sixteen hundreds, Thomas Sydenham — a British physician and author of Observationes Medicae — observed: “The arrival of a good clown exercises a more beneficial influence upon the health of a town than 20 asses laden with drugs.”
Nearly four hundred years later, we are still discussing and studying laughter. Not so much to understand its impact on human health — that it is generally beneficial is widely accepted — but to understand why it is beneficial, since neuroscientists still aren’t entirely sure what happens in our brains when we laugh.
Regardless of what science does or doesn’t yet know, I am an enthusiastic advocate of laughter in the workplace. And I mean something broader than the occasional chuckle. I’m talking about a culture of humour: an atmosphere in which the natural inclination to have fun is actively encouraged, and in which levity and productivity are not seen as opposites.
In his 2013 book The Humor Advantage: Why Some Businesses Are Laughing All The Way To The Bank, Michael Kerr notes that the type and degree of humour in the workplace depend very much on an organization’s culture. The question, then, is why a small-business owner should bother cultivating that kind of culture.
You might be wondering: if I encourage humour in the workplace, won’t people spend more time laughing than working? Am I running a business or a comedy club?
Unless your small business literally is a comedy club, that’s not what I’m suggesting at all. On the contrary, I’m talking about boosting the upside potential of your business. Employees are simply more productive in some environments than in others, and humour — properly embraced and managed — is one of the things that makes the difference.
The literature on workplace humour points to several ways it supports productivity: it creates an upbeat atmosphere; it builds trust, because humour often reveals the authentic person; it boosts morale, since people enjoy working with colleagues who have a sense of humour; it puts people at ease; it relieves stress; and it fosters creativity, because relaxed people tend to think more freely and imaginatively.
Enhanced productivity, of course, benefits your bottom line. But beyond the numbers — who wants to spend their working days in a joyless, humourless environment? Life is too short, and workdays too long, for that.
That said, much of what passes for humour today has no place in decent company — or in a decent company. As a small-business owner, you must draw a clear line between positive, healthy humour and the kind that is negative or harmful. Once humour turns offensive, it can disrupt the team, hurt productivity, drive up employee turnover, and even cost you business.
A small business tends to take on its owner’s character, and your sense of humour is no exception. You don’t need the formal policies of a large corporation to set the tone. A subtle frown, a quiet word, or simply leading by example is usually enough. Most employees are perceptive — they’ll quickly sense where the line is and stay on the right side of it.
So, what lies on the wrong side? Generally, anything that singles out individuals or causes embarrassment. A study at Marshall University in West Virginia identified age and weight as two common flashpoints. I would add sex, clothing, intelligence, marital status, and substance abuse to that list. Remarks touching on these topics — however well-intentioned — are likely to be taken the wrong way and can turn the atmosphere uncomfortable, if not hostile.
During my articles with a major accounting firm in Cape Town, one of the audit managers relentlessly teased and tormented a handful of articled clerks. They were vulnerable not only because of their junior rank in a rigid hierarchy, but because they were shy and introverted. It was uncomfortable — and at times genuinely disturbing — to witness. In retrospect, what was being dressed up as humour was bullying, plain and simple, most likely driven by the manager’s own insecurities.
Bullying disguised as humour must be nipped in the bud the moment it appears.
On a more positive note, I’ve observed that when humour is woven into a workplace’s atmosphere, outsiders tend to sense it immediately — and feel comfortable enough to join in. This helps sustain the relaxed, happy, and productive environment you’re after.
A humour-receptive workplace frees employees to enjoy spontaneous moments of levity. As human beings, we have an inherent need to punctuate our days with a good, therapeutic laugh. And humour is especially powerful when it arrives at precisely the right moment.
Such a culture is possible in virtually any business. Consider the operating room. Imagine lying anaesthetized on the table while surgeons work with razor-sharp instruments. Sombre silence? Barked commands of “Scalpel! Clamp! Sponge!”? Not quite. They play music, they chat, they crack jokes, and they laugh. Humour helps them through an intensely stressful, high-stakes job. You can take my word for it — my daughter is a surgeon.
Here’s another profession you might not associate with humour — I certainly didn’t. During the business valuation phase of my career, I was assigned to assess a company that owned two funeral homes, run by two brothers named Brown. I’d never met an undertaker before, and I arrived at our first meeting with a stomach full of butterflies. As it turned out, the butterflies were entirely unnecessary. The Brown brothers were two of the most jovial, quick-witted people I had ever encountered. Had I met them in another context, I’d have assumed they were a comedy act.
I should add that their humour never once compromised their professionalism. They managed it with considerable skill — as you’d have to, in a line of work that would surely be unbearable without some release.
The “company clown” isn’t so much a specific person as a symbol of the broader role workplace humour can play — though your business may well have a naturally jovial employee who earns the label. Such a person can help sustain a humour-friendly environment through observations, gentle pranks, and moments of spontaneity, provided their delivery is subtle and never threatening. Humour should never be overbearing or relentless — there is nothing quite as unfunny as someone who is always trying to be funny.
And if your company clown crosses the line into damaging pranks, cutting sarcasm, hurtful teasing, or ridicule, a subtle hint may not be enough. As the owner, it falls to you to rein them in before the damage spreads.
Ultimately, responsibility for the culture rests on your shoulders. Humour can be one of your most powerful tools — but only if it is positive and healthy. Get that right, and you’ll build a happier, more productive workplace that people genuinely enjoy being part of.

























