Study: What Happens To Your Paycheck When You Date Your Boss

Workplace romances are rarely a good idea, even if you don’t get caught on a Coldplay concert kiss cam in a public display of affection. It’s not uncommon for people who spend upwards of 40 hours a week working together to catch feelings for each other, acting on them can come with major downsides. New research points out some you may not have even thought about - like the negative effect it can have on your paycheck.

A new report from the National Bureau of Economic research looks at the cost of a workplace relationship.

• After analyzing data on couples living together in Finland, they found that dating a manager can boost an employee’s pay at first, but it can slash it after they split.
• Starting a romance with a boss led to an average pay boost of 6% for the subordinate, which sounds good. The thing is, their earnings dropped by 18% post-breakup, on average.
• But it doesn’t stop there. The negative consequences of dating and breaking up with a boss followed the employee for about four years post-split.
• And it’s not just their paycheck that’s affected. The employee was 13% more likely to leave the workforce after the end of the office romance, plus, they were less likely to make “strategic job moves” to a different company afterwards.
• The breakup of a boss and employee also negatively affected others in the workplace. There was a 6% drop in the retention of other workers at the company when the workplace romance started, because people think the boss may be giving their employee/lover special treatment.
• "Workers who observe a peer dating a manager may attribute the pay increases we document to favoritism rather than merit, potentially undermining morale," the economists explain. "Such perceptions can have broader consequences, including increased turnover rates within affected establishments."

Fortunately, studies have shown workplace romances are on the decline overall. In 2017, 11% of couples reported meeting at work compared to 19% in 1995. But these findings suggest you may want to make sure you’re willing to risk an 18% drop in pay before hooking up with your boss.

Source: Investopedia

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