Your fellow employee is wrong on two counts. First, gossip is idle chatter and about the affairs of other people, regardless of whether such drivel is fact or fiction. Secondly, your employee is wrong by acting in a way that contradicts what your manager has said.
When employees immerse themselves in gossip, the outcome is a no-win situation. The company loses because time that should be spent on work-related matters is wasted or disrupted by inane conversations. In addition, whether accurate or inaccurate, gossip can bring pain and stress to anyone whose name is included in the banter. And further, being known as the company gossip does not do much to advance an employee’s credibility, reputation, or career.
Rather than merely trying to stop the verbiage, you need to act more assertively. The next time she approaches you with one of her tales, tell her you are not interested, and then ignore her comments and continue whatever you were doing. By making a gossip feel ignored and unimportant, you are removing some of the most important rewards for a gossip. This may or may not stop her gossiping, but it should stop her gossiping to you.
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