Researchers from Colorado State University and the University of New Mexico found that bosses who are financially stressed, especially if they are men, are more likely to be abusive toward their staff.
Study leader Assistant Professor Keaton Fletcher, from the Department of Psychology at Colorado State University, and Associate Professor Trevor Spoelma from the Anderson School of Management at the University of New Mexico, wrote about their study and findings in the peer-reviewed Journal of Occupational Health Psychology (citation below).
They gathered and analyzed data from surveys of both leaders and subordinates and found a link between financial stress and abusive supervision. They also found that the link was more common among male than female bosses.
The authors also explored possible reasons behind this dynamic, such as societal gender expectations, and outlined how these findings might help develop strategies to support employees.
Financial Stress
Financial stress refers to the anxiety or worry that we feel when we cannot manage our financial obligations or feel uncertain about our financial future. Possible causes may include debt, insufficient income to cover expenses, financial emergencies, or the inability to save for future needs.
MensLine Australia has the following definition of Financial Stress:
“Financial stress describes the pressure or worry you feel when your income falls short of your expenses. This can arise from various situations, such as job loss, unexpected bills, or debt. Financial stress can impact your mental health and emotional wellbeing, leading to feelings of anxiety, frustration, and helplessness.”
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Common in America
It is a common problem in the United States. According to a survey carried out by the American Psychological Association (APA), in 2022, stress about money was at its highest level in seven years.
There have been many studies on financial stress and how it may affect us physically and mentally. However, there is a lack of research on how it might affect nonverbal behaviors by leaders toward their staff, the authors wrote.
Fletcher explained:
“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. 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 not address or prepare for it, such as lost productivity.”
Fletcher was careful to point out that financial stress is not about specific income levels; it is related to perceptions about one’s ability to pay bills or repay debts and an accompanying sense of losing control. Responding by bullying a subordinate, for example, may represent an attempt to regain a sense of control.
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Bosses Have Limited Options
He added that managers often lack options to increase their income, such as overtime pay, which may predispose them to financial stress.
Financial Stress and Gender
The study found that a leader’s gender played a major role in how they responded to financial stress.
In our society, men are expected to be in control, making them more vulnerable to becoming abusive as a result of financial stress.
Meanwhile, society often punishes women for what people perceive as “aggressive” behavior, which may explain why they are less likely to respond with abusive supervision.
Fletcher said:
“We expected men to be more sensitive to loss of control that then resulted in abusive supervision, and that is consistently what we found. 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.”
Future Studies
Fletcher mentioned that future research will likely focus on exploring these relationships in more depth and understanding how specific contexts and demographic factors come into play.
The team, in particular, plans to look at how socioeconomic experiences, like growing up in poverty, might affect how leaders respond to financial stress later in life.
The authors also discussed how their research and findings could support employees who are experiencing the stress, *while reducing its impact on teams.
Fletcher said:
“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.”
Citation
Fletcher, K. A., & Spoelma, T. M. (2025). Financial stress and abusive supervision: The role of gender. Journal of Occupational Health Psychology, 30(1), 45–60. https://doi.org/10.1037/ocp0000312
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