'Both men and women are likely to respond to feeling like they don't have control with abusive supervision': researcher explains link between financial stress and abusive leaders

Financial insecurity doesn't just impact employees' personal lives — it also has significant consequences for workplace dynamics, particularly for those in leadership positions.

According to new research from the University of Colorado, leaders are particularly susceptible to allowing their financial stress to manifest as abusive behaviour.

“At least in the United States, many managers make below a living wage, they aren’t necessarily covered by overtime rules that would help them increase their wage, and you can decouple income from financial stress – even at high levels of income, you can still experience a lot of financial stress,” says study co-author Keaton Fletcher, assistant professor of psychology at Colorado State University.

“What makes leaders unique is that they have the people working underneath them, so they have this position of power. They've got levers of power that they can pull on, and maybe potentially fewer checks on their behaviour. And so they're of greater consequence, potentially.”

How gender influences leadership responses to stress

The study reports that nearly 60% of employees across all income levels reported moderate to high levels of financial stress. Research consistently shows a connection between financial stress and abusive supervision, Fletcher explains, which...

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