PurposeThis study examines the functions of informal communication in organizations. Informal communication can be characterized as any interaction within an organization in which two or more individuals assume personal roles rather than their professional roles and in which employees do not intend to solve work-related problems. Despite its central role in organizations, a comprehensive understanding of the specific functions of informal communication within workplace dynamics is lacking.Design/methodology/approachWe reviewed existing literature to identify the functions of informal communication and then surveyed employees (N = 1,380). We asked them to indicate their agreement with statements measuring the functions of informal communication that we derived from the literature.FindingsUsing exploratory factor analysis, we identified four core functions: stress management and recreation, nurturing private relationships, fostering a sense of belonging and connectedness and facilitating information exchange and coordination. We then examined how these core functions related to job-related and sociodemographic characteristics. Our findings underscore the importance of informal communication in organizations, particularly in facilitating the development and maintenance of social relationships as well as information exchange and coordination, both of which play critical roles in organizational success.Originality/valueThis study is among the first to systematize the functions of informal communication in organizations and to empirically extract core functions that can be used for further research. It is also highly relevant to practitioners of organizational management and organizational communication.