
Researchers have long recognized that humor can grab attention, deepen social connection, and build attraction. For business leaders, a well-timed joke can defuse boardroom tension, build rapport with a new team, and make complex strategic messages more memorable. Yet, attempting humor at work is notoriously risky. We have all witnessed a leader’s joke fall completely flat, leaving a room in awkward silence. Research reveals that failed humor diminishes a leader’s social capital, resulting in lower follower respect, reduced likability, and compromised perceptions of their competence and legitimacy. Why do some humorous attempts land perfectly while others fail?