The modern workplace is growing quieter. Across tech startups, banks, doctors’ offices, and law firms, employees are increasingly asked to keep secrets—not personal ones, but confidential information about clients, proprietary technologies, or business strategies.
Sometimes, these secrets must be kept from the public. Other times, employees are asked to withhold information from colleagues within their organization, even from their own team members.
Research from the Stanford Graduate School of Business shows that while organizational secret-keeping is becoming more common, we know little about its impact on those who hold these secrets. In a new study, the researchers explore this issue.
Keeping secrets
They suggest that keeping organizational secrets can both increase stress and isolation while also giving employees a greater sense of meaning and importance in their work.
“It’s interesting how the same experience can have opposite effects,” the authors explain. “Holding onto organizational secrets both harms and helps employee well-being, though in different ways.”
This study is the first large-scale examination of how workers are affected by organizational secrets in real-world settings. The findings could help employers find ways to reduce the stress that comes with keeping confidential information.
Lack of choice
Unlike personal secrets, organizational secrets aren’t a matter of choice—they’re mandated by superiors. Disclosing such information can have serious professional, financial, and legal consequences, such as losing the trust of coworkers, losing a job, or facing legal action from the employer.
In many cases, employees must withhold information from colleagues, which can disrupt workplace social initiatives like affinity groups or mentoring programs. Sharing information is a common way people connect with each other.
With this in mind, the researchers hypothesized that the pressure of keeping a professional secret could increase employees’ stress and feelings of isolation. To test this, they surveyed nearly 600 workers in the United States and the United Kingdom, asking if they had ever had to keep a secret, such as the identity of clients or details about upcoming layoffs.
Causing stress
The survey confirmed that organizational secrecy increases stress and isolation, and that even past secrets can continue to trouble employees.
However, keeping organizational secrets also has its perks. The researchers found that secrets are linked to feelings of privilege and status, which helps explain why they may make work feel more meaningful.
“Although information is often seen as a source of power,” the researchers say, “we found that access to organizational secrets boosts status rather than power.
“You feel valued, and the work feels more meaningful when you have access to these secrets. But you’re also limited in what you can do with this information, which explains why you may not feel more powerful.”
Part of the job
In another experiment, the researchers wanted to see if workers would view a job that requires secrecy as more stressful. Over 770 participants reviewed hypothetical job ads. In one version, the ad mentioned that the job involved highly confidential information that required a non-disclosure agreement.
People who saw this version were more likely to believe the job would involve increased social isolation, status, and meaning—but not more stress. This reinforced the idea that having access to organizational secrets makes people feel their work is important.
To test this further, respondents were asked to recall a time they had to keep a secret at work. Again, the researchers found that secret-keeping was directly linked to increased stress. However, they also found that when an organizational secret must be kept from some colleagues, it leads to greater social isolation.
They also discovered that keeping a company secret, as opposed to a secret for a friend, coworker, or family member, is associated with increased feelings of social status and meaningfulness at work.
Lastly, the researchers analyzed more than 8,000 responses from a survey of federal employees. They found that while keeping organizational secrets boosts both stress and a sense of meaning, it does not directly affect overall job satisfaction.
A balancing act
In summary, the studies suggest that keeping organizational secrets can be a balancing act between stress and a sense of purpose. When these opposing effects are balanced, they may cancel each other out. But if stress and isolation become too overwhelming, employees’ well-being can suffer.
The authors hope this research will help managers address the isolation and stress caused by secrecy. They suggest that instead of focusing on the consequences of breaking confidentiality, employers should emphasize the value and meaningfulness of keeping secrets. Additionally, since sharing information helps people connect, companies could create opportunities for teams and coworkers who share professional secrets to bond.
“Solutions are within reach,” the authors conclude. “It’s crucial that organizations provide support to minimize the negative effects of organizational secrecy.”
