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Report: Financially stressed managers abusing workers

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Eric Galatas

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(Colorado News Connection) Researchers at Colorado State University have been able to link the economic stress experienced by 78 percent of Americans living paycheck to paycheck, to behavior that is bad for workers and company bottom lines.

Keaton Fletcher, assistant professor of industrial organizational psychology at Colorado State University and the report's co-author, said people who supervise other workers, at all management levels, are unleashing their economic frustrations on their direct reports.

"When they feel financially stressed, they are more likely to be abusive, berating or belittling, demeaning, sometimes yelling or cursing at subordinates," Fletcher outlined.

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The findings, published in the Journal of Occupational Health Psychology, showed financial stress is experienced by bosses regardless of their salary levels, and men are more likely than women to be abusive toward subordinates. The research was done in collaboration with the Anderson School of Management at the University of New Mexico.

When bosses cannot pay their bills, Fletcher explained they feel like they are not in control of their lives. Bullying a subordinate is one way to try and regain a sense of personal agency. Gender expectations may also play a role. Fletcher pointed out women are more likely to be punished socially for "aggressive" behavior than men.

"Both men and women feel this lack of control in response to financial stress," Fletcher observed. "The data show that men are more likely to engage in those abusive behaviors when they have this feeling of a lack of control."

Companies tolerating abusive bosses are vulnerable to costly lawsuits and Fletcher added even workers who do not report abuse or sue can hurt a company's bottom line. They are more likely to show up late for work, be less productive, steal or talk badly about the company to other people.

"They are also more likely to quit," Fletcher stressed. "It is so expensive to replace employees. Pretty much across the board, having abusive supervisors just is financially costly to organizations."