Genesis recorded "We Can't Dance" from March to September 1991 at their private recording studio named The Farm in Chiddingfold, Surrey. The trio were keen to work together after such an extensive break, and after two-and-a-half months of what Collins described as "chopping away, fine-tuning, and honing down all these ideas", they had completed some fifteen tracks. They originally considered releasing a double album, but realised most people would be listening to their work on CD which gave them the additional time they wanted to present more of their musical ideas. As with "Genesis" (1983) and "Invisible Touch", none of the material on "We Can't Dance" was conceived beforehand, and the band instead developed songs through lengthy improvisational jams in the studio. This was a deciding factor for Collins to remain in the band despite his solo success as he enjoyed the task of writing songs with his bandmates from nothing. A typical session would involve Banks and Rutherford playing chords on the keyboard or guitar, respectively, with Collins devising a drum pattern with a drum machine which allows him to sing notes and dummy lyrics. The words he sings may then be used to form a lyric or help create atmosphere for the song.