Are you thinking about dating your boss? New Research Shows What Happens to Your Salary (Spoiler: Drama)

✨ Read this trending post from Investopedia | Expert Financial Advice and Markets News πŸ“–

πŸ“‚ Category: Career Advice,Careers

πŸ“Œ Main takeaway:

Key takeaways

  • A recent study found that dating a manager can increase his subordinates’ pay, but breaking up can reduce his profits.
  • The financial and career repercussions last for years, as employees are more likely to leave the workforce and less likely to make strategic career moves after a breakup.
  • Workplace romances can also hurt team morale and maintenance, as coworkers may feel favoritism when someone is dating a manager.

When the married CEO of Astronomer, a startup, was seen on camera kissing at a Coldplay concert with his company’s chief human resources officer earlier this year, the fallout from this public display of their relationship was swift β€” both the CEO and HR director resigned in the following days.

As it turns out, the cost of a workplace relationship β€” even for those who aren’t executives β€” can be significant, according to a new working paper from the National Bureau of Economic Research (NBER).

Economists looked at data on couples living together in Finland. They found that while entering into a relationship with a manager increased a subordinate’s earnings by 6%, the breakup cost that person a whopping 18% increase in earnings.

The negative consequences of dating and breaking up with a manager followed the employee for approximately four years after the breakup.

The subordinate was 13 percentage points more likely to leave the workforce after a breakup and less likely to make strategic moves to different companies afterward.

The breakup also had negative effects on others in the workplace. There was a six percentage point decline in retention of other workers at the company when the relationship began. This is because other workers may believe that a subordinate is receiving special treatment for being in a relationship with the supervisor.

β€œFor example, workers who observe a peer dating a manager may attribute the pay increases we document to nepotism rather than merit, which could undermine morale,” the economists wrote. β€œSuch perceptions can have broader consequences, including increased staff turnover rates within affected organizations.”

While workplace romances are already on the decline (only 11% of heterosexual couples in 2017 reported that they met as coworkers or through coworkers, compared to 19% in 1995), these findings suggest that people should continue to exercise a great deal of caution when considering dating a supervisor.

A separation from the workplace can affect more than just a person’s feelings, it can affect their future salaries as well.

πŸ”₯ What do you think?

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