The importance of humor in business and parenting

Why leading with laughter can help you manage both kids and people at work

There’s an interesting parallel between business and parenting.

Though they might seem like two very different worlds, they share several core principles.

Both are hierarchical.
There is a clear chain of command in both.

Both require a constant reassessment of strategies.
Because kids, like markets, are often unpredictable, and what worked yesterday might not work today.

Kids.

Both are long-term commitments.

Both require planning and responsibility.

In both it’s better to lead by example.

And in both, humor can have a positive impact: in tense or stressful situations, a well-timed joke can diffuse tension, build stronger relationships, and create a positive atmosphere.

While parent-child relationships are more loving than business relationships (or at least they should be), stressful situations happen a lot when parenting also.

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Humor in parenting 👶

Humor isn't just for fun.
It can also improve relationships.

A recent study published in July 2024 found that parents who use humor have better relationships with their children.

More specifically, of those who reported that their parents used humor, 51% said they had a good relationship with their parents.

Whereas, of those who said their parents did not use it, only 3% reported a good relationship.

In the study, the researchers surveyed 312 people between the ages of 18 and 45. More than half said they were raised by people who used humor and 72% agreed that humor can be an effective parenting tool.

Also, the majority said they do or plan to use humor with their children, and 64% believe that using it¹ has more potential benefit than harm.

After all, a good joke never killed anybody

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Humor in business 👔

Similarly, in business humor has been shown to help reduce hierarchies, create better environments for collaboration and creativity, and diffuse tension.

However, despite its importance, humor is one of the most underappreciated assets in the workplace.

The problem?
As we grow older, we laugh less.

According to a 2013 Gallup survey of 1.4 million people in 166 countries, the frequency in which we laugh or smile in a given day begins to drop from the age of 23.

We grow up, enter the workforce, and suddenly become serious and stop laughing.

Jennifer Aaker and Naomi Bagdonas have surveyed more than 700 workers across various industries, and found that in the pursuit of “professionalism”, many people are afraid to show off their sense of humor, as well as more of their true personality, at work each day.

Think about it.
Does that happen to you?

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The power of humor 😀

People are afraid to show off their sense of humor, but research suggests we should do the opposite.

One study by researcher Wayne Decker discovered that managers who had a sense of humor were rated by their subordinates as 23% more respected, 25% more pleasant to work with and 17% friendlier.

But humor isn’t just for leadership - it’s great for sales, too.

Another experiment by researchers Karen O’Quin and Joel Aronoff found that participants were willing to pay a price that was 18% higher if the salesperson added the dumb joke “My final offer is X, and I’ll throw in my pet frog”.

A lovely pet frog 🐸

The reason? Laughter releases oxytocin, which helps solidify closeness and improves trust.

Of course, you don’t need to hand out frogs to close deals, but using humor can make a big difference.

Because of the oxytocin, humor is also good for office bonding.

To test this out, researchers Alan Gray, Brian Parkinson and Robin Dunbar had strangers paired and asked to watch either a funny blooper reel from a popular TV show or a more serious nature documentary.

The researchers then asked each participant to write a message to the person they’d sat next to.

Those who’d watched the funny blooper reel disclosed “significantly more personal information” than those who hadn’t.

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The takeaway 🎁

Whether you're raising kids or managing a team, humor can be a tremendous tool for building relationships, diffusing tension, and creating a more enjoyable environment.

While business and parenting might seem worlds apart, they share fundamental similarities that can be made lighter and more effective with a dash of humor.

So, let’s not keep falling off the humor cliff before it’s too late, and let’s start laugh a bit more. 😄

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• Why putting our phone away isn’t enough

• A 1917 composition by the founder of Forbes that will inspire you to be better

• Why bronze medalists are happier than silver medalists

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See you next Sunday 🗓️
Thanks,
Giacomo

1. Obviously, certain types of humor (especially sarcasm and mockery) are likely to be ineffective if not unhealthy in parenting.