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Stress about personal finances may make leaders abusive in workplace

Workplace leaders who are financially stressed are more likely to be abusive toward their subordinates – particularly if the leader is a man. 

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Better your staff’s finances to look after your business.

New research from Colorado State University shows that workplace leaders who are financially stressed are more likely to be abusive toward their subordinates – particularly if the leader is a man. 

The findings, published in the Journal of Occupational Health Psychology, provide insight into leader behavior due to a common source of stress. The research was led by Assistant Professor Keaton Fletcher in the Department of Psychology in partnership with Associate Professor Trevor Spoelma in the Anderson School of Management at the University of New Mexico. Using data collected through surveys of both leaders and subordinates, the paper shows that financial stress is associated with abusive supervision, and that relationship was stronger for men than women. The paper further explores potential reasoning for that dynamic, including societal gender expectations, and discusses implications from the findings for supporting employees.  

Financial stress – the perception that you do not have sufficient resources to meet your needs – is common in America. According to a survey by the American Psychological Association, stress about money in 2022 was at its highest level since 2015. However, the ways the associated feeling of lack of control from it eeking into the workplace as hostile verbal and nonverbal behaviors by leaders towards their employees is not well researched, said Fletcher. 

“Financial stress is becoming increasingly common, but we are still learning what it can do to an organization and leader who is in a unique position to influence not only their own work, but the work of others,” he said. “Research has so far focused on adverse outcomes like burnout, disengagement or even injuries due to abuse by leaders. Our work here aims to offer a more comprehensive view of the ways this manifests, and the costs to an organization that does address or prepare for it, such as lost productivity.” 

Fletcher said financial stress can be described as the fear that you will not be able to make ends meet. He is careful to note that this is not specifically about income levels but is instead related to perceptions about one’s ability to fulfill financial obligations and an associated sense of loss of control. Abusive supervision in the form of bullying a subordinate as a response, for example, offers a potential path to regain some sense of agency.  

He added that managers may be more predisposed to financial stress because of a lack of available options to improve their situation, such as overtime pay.  

The research team was able to show that a leader’s gender played a large part in how they chose to respond to financial stress. Because men experience added gendered societal expectations to generally be in control, they may be more susceptible to pressures from financial stress. Meanwhile, similar societal expectations may also limit women from pursuing abusive supervision as a response to financial stress, as they are often punished socially for what is perceived as “aggressive” behavior.    

“We expected men to be more sensitive to loss of control that then resulted in abusive supervision, and that is consistently what we found,” Fletcher said. “However, we also found that leaders who are women experienced the same stress and do exhibit abusive behaviors, but just less than men. Our work also shows leaders, regardless of gender, can also respond by supporting or strengthening their social networks and displaying empathic leadership – both of which are positive reactions.” 

Fletcher said future work would likely aim to further unpack relationships and better understand context-specific interactions related to demographic variables. In particular, the team is planning to explore how socioeconomic experiences such as living in poverty as a child may change responses to financial stress as a leader later in life. 

The paper also discusses practical implications for the research, including ways to support employees experiencing the stress and limiting its impact on teams. In addition to increased pay, Fletcher said organizations could invest in programs that limit costs for childcare for employees as one option. They could also get ahead of abusive situations before they occur by offering trainings on mindfulness or fiscal education. 

“There are negative effects and consequences associated with this kind of abuse – not only for workers who see it or receive it – but even for the supervisors doing it,” Fletcher said.

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Reversible words can lower consumer disbelief in ads

A simple word choice in marketing messages can significantly impact how confident consumers feel about believing – or not believing – a claim.

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It’s estimated that consumers experience hundreds if not thousands of marketing messages daily. While the exact number can depend, how much someone believes the message can be more important for marketing success than the number of messages they see. 

A new study reveals that a simple word choice in marketing messages can significantly impact how confident consumers feel about believing – or not believing – a claim. Researchers found that when words differ in their “reversability,” or how easily people can think of their opposites, it can trigger different mental processes when consumers evaluate marketing language. 

Imagine the messaging options for a new sunscreen designed specifically for those who like a strong scented product. The first product description reads, “The scent is prominent,” while the second notes, “The scent is intense.” The word “prominent” is uni-polar, meaning people tend to negate it by adding “not” to the original statement.

“Intense,” though, is a bi-polar word, meaning readers can easily come up with its opposite meaning and negate the statement by replacing it with its antonym. In this example, “The scent is mild,” instead of, “The scent is intense.” 

“When people encounter easily reversible words, like ‘intense’, in messages processed as negations (mild), they experience lower confidence in their judgements compared to words that are hard to reverse, like ‘prominent,’” explained Giulia Maimone, a postdoctoral scholar in marketing at the University of Florida Warrington College of Business. 

Across two experiments of more than 1,000 participants, the research demonstrated that this effect occurs because negations of bi-polar, or reversible, words engage a more elaborate cognitive process requiring additional mental effort, resulting in lower confidence of the statement’s truthfulness. 

Based on their findings, the researchers suggest that marketers take this advice when crafting language: for new products, use affirmative statements with easily reversible words, like ‘The scent is intense’ in the sunscreen example, which most consumers will judge as true with high confidence. Importantly, this language would also minimize the confidence of consumers who will be skeptical about the message, as they will process it via a more complex cognitive process that reduces confidence in those consumers’ disbelief. 

“This simple lexical choice could help companies maximize confidence in their desired messaging and minimize confidence among the doubters,” Maimone explained. 

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If you’re a perfectionist at work, your boss’ expectations may matter more than your own, research finds

Help your employees by clarifying expectations through regular feedback and performance conversations to reduce role ambiguity, as doing so can provide employees with a better understanding of role expectations and enhance mutual understanding of those standards.

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If you’re among the 93% of people who struggle with perfectionism at work, new research suggests that your experience may depend less on your own high standards and more on whether those standards meet your supervisor’s expectations. 

Researchers from the University of Florida Warrington College of Business found that whether perfectionism helps or harms employees depends largely on whether employees’ personal standards align with their supervisors’ expectations. 

Specifically, they looked at the connection between employees’ self-oriented perfectionism, or the expectations of flawlessness they set for themselves, and supervisors’ other-oriented perfectionism, which reflects the extent to which they set excessively high standards for and critically evaluate their employees’ performance. 

Using data from more than 350 employees and about 100 supervisors, the researchers found that perfectionism’s impact depends on whether employees’ standards align with what their supervisors expect and how clearly those expectations are understood. 

When employees’ personal standards are aligned with their supervisors’ expectations, they tend to experience less role ambiguity, meaning they have less uncertainty about the expectations and standards for their role, why those standards matter and the consequences of not meeting them. This clarity in their work is linked to better performance, lower burnout and higher job satisfaction. 

“Problems between employees and their supervisors are more likely to arise when these expectations don’t match,” explained Brian Swider, Beth Ayers McCague Family Professor.

The most difficult situation occurs, Swider and his colleagues found, is when supervisors expect higher levels of perfectionism than employees expect from themselves. In these cases, employees reported greater uncertainty about their roles, along with worse work outcomes including higher burnout and lower job satisfaction.

“If you’re an employee who struggles with perfectionism at work, our findings suggest that understanding your supervisor’s expectations may be just as important as managing your own tendencies towards perfectionism,” Swider said. “Talking to your supervisor about priorities, standards and how your performance will be evaluated can help reduce uncertainty and ensure you both share a clear understanding of what success looks like.”

The researchers have similar recommendations for employers: help your employees by clarifying expectations through regular feedback and performance conversations to reduce role ambiguity, as doing so can provide employees with a better understanding of role expectations and enhance mutual understanding of those standards.

The researchers also recommend that organizations should consider how employees and supervisors are paired, as mismatched expectations can increase stress, reduce job satisfaction and ultimately impact performance. 

The research, “The influence of employee-supervisor perfectionism (in)congruence on employees: a configurational approach,” is published in Organizational Behavior and Human Decision Processes

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Study shows scaling startups risk increasing gender gaps

Founders with HR‑related education counteract these challenges. In ventures led by founders with HR training, the odds of hiring a woman increase by more than 30 percent, and the odds of appointing a woman to a managerial role increase by 14 percent for the same level of scaling.  

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When startups scale quickly, founders often make hurried hiring decisions that unintentionally disadvantage women, according to new study from the Stockholm School of Economics in Sweden. The study shows how the pressures of rapid growth increase the likelihood that founders rely on mental shortcuts and make biased decisions. 

Drawing on large‑scale Swedish data, the study shows that scaling—when companies hire far more people than their usual growth trend would predict—puts pressure on founders to decide swiftly, which increases the use of mental shortcuts. These shortcuts can activate gender stereotypes, shaping who gets hired and who moves into managerial roles.  

“During those moments of rapid growth, even well‑intentioned leaders can fall back on familiar stereotypes when assessing who they believe is best suited for the role,” says Mohamed Genedy, co-author and Postdoctoral Fellow at the House of Innovation, Stockholm School of Economics. 

Reduced odds of hiring female managers 

His research analyzes more than 31,000 new ventures founded in Sweden between 2004 and 2018. It finds that in male‑led startups, scaling reduces the odds of hiring a woman by about 18 percent, and the odds of appointing a woman to a managerial position by 22 percent.  

These patterns emerge even in a highly gender‑equal national context, making the findings especially noteworthy.  

Crucially, the study reveals that founders with HR‑related education counteract these challenges. In ventures led by founders with HR training, the odds of hiring a woman increase by more than 30 percent, and the odds of appointing a woman to a managerial role increase by 14 percent for the same level of scaling.  

“When founders have experience with structured hiring practices, the gender gaps shrink, and in some cases even reverse,” Genedy says.  

“This shows that getting the basics of HR right early on really pays off. When things start moving fast, founders with HR knowledge are less likely to rely on biased instincts and more likely to hire from a broader talent pool.”  

Prior experience in companies with established HR practices also helps, though less so. It raises the likelihood of hiring women as the new ventures scale, but does not significantly affect managerial appointments. 

Differences persist in female-led ventures 

The study additionally shows that these patterns are not driven by founder gender alone. Even solo female‑led ventures display similar tendencies when scaling, though to a somewhat lesser degree.  

And in female‑dominated industries, scaling increases the hiring of women for regular roles but still reduces the likelihood that women are appointed into managerial positions.  

“When scaling accelerates, cognitive bias kicks in for everyone,” says Mohamed Genedy. “Female founders are not immune to these patterns.”  

Together, these results point to underlying cognitive mechanisms that shape decisions under time pressure.

The study, Scaling with Bias? The role of founders’ HR knowledge and experience in hiring and managerial appointments, was published in Human Resource Management.

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