Organizational Culture of Secrets: How to Eliminate It

An Organizational Culture of Secrets
Most leaders understand that a trustworthy organization — the opposite of an organizational culture of secrets — embraces feedback, acts on it, and values transparent, honest communication. Many even enshrine these principles in their stated company values.

Yet too often, employees report during organizational culture assessments that leaders merely pay lip service to openness and honesty, falling short of truly embodying the communication standards they claim to uphold.

Why Organizational Secrets Are Bad
What happens behind the scenes — on secretive phone calls, in the break room, or via instant messaging — matters. Even a single team member engaging in gossip signals a culture problem, one capable of undermining an entire team. Teams built on secrecy cannot reach their full potential.

A 2019 study from the University of California Riverside found that employees spend an average of 52 minutes a day gossiping. While some workplace chatter is harmless, many forms of gossip fuel unnecessary drama, breed distrust, and erode employee engagement.

When gossip is tolerated, morale declines, employee engagement suffers, and overall team performance drops. Its impact can ripple beyond one team, spreading a toxic culture throughout the organization. Consequences include:

• Breakdown of effective communication
• Isolation of co-workers
• Potential legal exposure

An organizational culture of secrets doesn’t just harm relationships — it can jeopardize careers. As a leader, it is your responsibility to address gossip decisively and create a culture of transparency before it takes root.

Three Steps to Create a More Open and Honest Workplace Culture
Here are three steps to take to create a more high performance corporate culture:

1. Clean Up Your Own Act
   As a leader, you set the standard — always. Never discuss a team member behind their back without inviting them into the conversation. Don’t say or write anything you wouldn’t want the entire team to know the next day.
   
   Creating a healthy workplace culture starts with modeling how conversations should be handled: directly, transparently, and with empathy. Be willing to speak the truth, even when it requires difficult conversations. Trust is built one consistent action at a time, and it begins with you leading by example.
2. Establish Guidelines With Your Team
   Be explicit about why a gossip-free team matters and make it clear that everyone will be held accountable. When team members understand the real costs of tolerating a culture of secrets, they are more likely to support your efforts and help define the team’s “rules of engagement.”
   
   Feedback should be delivered honestly and directly, aimed at improving behavior. These conversations must be candid yet respectful, creating a safe environment without fear of retaliation, while providing space and time for reflection and growth.
3. Agree Upon Steps For Change
   After feedback is delivered and received, a follow-up discussion should clarify the specific steps needed to improve the situation. Both the giver and receiver must agree on the actions to be taken, recognizing that meaningful change often requires effort from both sides.
   
   For example, a micromanaging boss may need to step back, while an overly controlled team member must demonstrate the ability to handle responsibilities independently. Both parties should be held accountable, ensuring real progress is made and sustained.

The Bottom Line
Don’t let office gossip or secretive conversations undermine your organizational culture. Ensure employees feel safe delivering even uncomfortable feedback — knowing it will be heard, respected, and acted upon constructively.

To learn more about how to improve your leadership communication skills, download The 8 Top Reasons Leaders Need 360 Feedback