Benefits of humor

Humor has many benefits for communication and persuasion. Here are just a few...
Better communication
Studies by Fabio Sala at the Hay Group have shown that humor (used skillfully):
Reduces hostility
Deflects criticism
Relieves tension
Improves morale
Helps communicate difficult messages
Executives who were ranked as outstanding used humor over twice as often those ranked average (17.8 times/hr vs. 7.5 times/hr). They used mostly positive or neutral humor, but also sometimes used negative humor (for example as a put-down). They also received greater bonuses.
Although humor may not be a necessary and sufficient factor to gain all these benefits, it is at least a marker, perhaps, of emotional intelligence.
Research by Clouse and Spurgeon has also shown that a good joke or playful laughter can boost creativity, initiate conversation and generally build a more trusting atmosphere.
Other research by Bettinghaus and Cody (1994) and Foot (1997) showed that humor:
Builds rapport and liking of the humorist
Makes the target person want to listen more
Relaxes the person, making them more receptive to the message
Makes the person feel good and hence not think so carefully about the proposition
Makes the information more memorable
Distracts the person from thinking about counter-arguments
Getting concessions
Playful joking also increases the likelihood of financial concessions during a negotiation. Relaxing the other person and building trust makes them see you more as a friend and hence deserving of a better deal.

Content taken from changingminds.org