Confidentiality at Work: A Leadership Skill to Talk About

One of the fastest ways for a manager or leader to lose the trust of those they work with is to leak confidential information. Although not easy, keeping secrets and using discretion is a key part of leadership that should be talked about more.

The goings-on of your organization, personal information about employees — these things can be tempting to share. But doing so can disrupt business, break trust and even violate a few laws in some cases.

Two examples of oversharing at work

1. Let’s say an organization is considering restructuring. In a leadership meeting, various plans are considered and discussed. After leaving the meeting, one manager inadvertently shares the information with a direct report who immediately tells a friend in another department that could be most impacted. This friend storms into their boss’s office demanding to know what’s going on, asks why they weren’t consulted and threatens to quit.
2. In another situation, an employee goes to their manager, sharing that they are going through a divorce, asking for time off and some extra flexibility with their schedule. The manager mentions this personal information to another employee who has little contact with the individual. That second employee spreads the information to others and soon the whole office is steeped in gossip.

In both these situations, sharing confidential information has disrupted work. It does damage to the organization, the individuals involved and to the leader’s reputation. In the case of the second example, it could also be illegal if defamation or harassment can be proven.

The psychology of keeping secrets: Why it’s so hard

Knowing something others don’t know can feel powerful. That goes for secret organizational information as well. And much like sharing any type of gossip, sharing secrets adds spice to conversations and gives an oxytocin rush that makes us feel good.

On the other hand, not sharing something you know that impacts others can make you feel isolated and stressed — like you’re lying or omitting the truth, according to research at Columbia Business School. It doesn’t feel very transparent.

Other reasons some leaders struggle when it comes to discretion:

• The organizational culture might not make it a priority.
• Some managers may not understand or have been trained on what information is confidential.
• A manager might believe that involving the team will somehow help.
• The sharing might be unintentional when a manager is just trying to be open and honest.

Management confidentiality defined

Your role as a manager is integral to keeping sensitive or confidential information about the company and its employees private. You have access to employee personal information, as well as proprietary financial data, strategy and technology details, some of which cannot be shared freely.

Laws create some obvious boundary lines about workplace information. Sharing trade secrets, such as a secret recipe or a list of top clients, is illegal.

Another easy one: We’ve all heard of attorney-client privilege and doctor-patient confidentiality. Communication in certain industries like these is protected by law. Also protected is customer, client or patient data, as well as employee personal records and work history.

These protections are clear and deviating can mean lawsuits, data breaches or losing your job. But there’s more to management confidentiality than averting legal hot water. And there’s plenty of gray area that’s not included in the law.

It’s important to remember that as a leader, your first responsibility is as an agent for your organization. Of course, even that requires some balancing, because that responsibility also means maintaining a trusting relationship with your employees. Your lips cannot be so tightly sealed that employees are in the dark.

Learn more at an upcoming leadership course:

Developing Your Leadership Presence, 1-hour webinar

Management & Leadership Skills for First-Time Supervisors & Managers, 2-day workshop

Here are some management confidentiality basics: 

Don’t share an employee’s personal information or details about their performance or health with other employees who don’t have a legitimate need to know. If you feel something needs to be shared with other managers, let the employee know what you’re sharing and with whom.

If an employee shares something with you that you feel might impact others, don’t promise to keep the information confidential. You have a duty to your organization. If the person is being hurt, or intends to hurt themselves or someone else, get HR involved immediately to help prevent this.

It’s also important to keep sensitive company information confidential. Upcoming hiring and layoff information, finances, product details or client data all fall into this category.

In an age of workplace transparency, keeping organizational secrets can feel anything but transparent. But remember, employees recognize that some level of nondisclosure is to be expected. Provide as much information as possible without breaking confidentiality. And when you do get the nod to pass along information to employees, don’t delay. People want to feel that they are hearing things at the earliest possible time.

Confidentiality is key for any manager or leader. Sharing the wrong thing can land you or your organization in a lawsuit. And even if what you share isn’t illegal, you could lose the trust of your employees or higher-ups who rely on you to build strong relationships with the people on your team while at the same time exercising discretion.