Power, love and paychecks: 30 years of data from Finland reveals the dangers of dating your boss – Fortune

Report on the Impact of Hierarchical Workplace Relationships on Sustainable Development Goals

An analysis of manager-subordinate romantic relationships reveals significant implications for several United Nations Sustainable Development Goals (SDGs), particularly those concerning gender equality, decent work, and institutional integrity. This report synthesizes findings from a comprehensive 30-year study of the Finnish population to assess the economic and professional consequences of such relationships.

Key Findings in the Context of SDGs

Impact on SDG 8: Decent Work and Economic Growth

The study highlights how hierarchical relationships distort fair employment practices, a cornerstone of SDG 8. While the relationship persists, subordinates experience temporary economic benefits, but these are not indicative of sustainable career growth.

• Initial Earnings Increase: Subordinates’ earnings rise by an average of 6% during the relationship. This gain is not linked to professional development but rather to preferential treatment, undermining the principle of equal pay for work of equal value.
• Post-Relationship Economic Penalty: Upon separation, the subordinate’s earnings fall by an average of 18%, and their likelihood of leaving the labor force increases by 13 percentage points. This severe economic penalty represents a significant setback to achieving stable and decent work for all.

Relevance to SDG 5: Gender Equality and SDG 10: Reduced Inequalities

The power dynamics inherent in these relationships often exacerbate existing inequalities, directly contravening the objectives of SDG 5 and SDG 10.

1. Gender Disparity: The vast majority of relationships studied involved a female subordinate and a male manager. The severe negative consequences of a breakup are therefore disproportionately borne by women, hindering progress toward gender equality in the workplace.
2. Exacerbation of Power Imbalance: The financial and professional precarity following a breakup reinforces the subordinate’s vulnerable position, widening the inequality gap. The incentive to remain in an undesirable relationship due to high economic exit costs further compromises the empowerment of the less powerful individual, typically the woman.

Spillover Effects on SDG 16: Peace, Justice and Strong Institutions

The presence of a manager-subordinate relationship has a tangible negative impact on the broader organizational environment, eroding trust and weakening the institution as a whole.

• Increased Employee Turnover: The study found that employee retention drops by six percentage points after such a romance begins, indicating a 14% increase in turnover compared to similar firms.
• Erosion of Trust: Perceived favoritism and unfairness undermine morale and trust in management, compromising the development of effective, accountable, and transparent institutions at the corporate level. This leads to talent loss and a less stable, productive work environment.

Policy Recommendations for SDG Alignment

Corporate Governance for Sustainable and Equitable Workplaces

To mitigate the risks identified and align corporate practices with the SDGs, organizations should implement clear and robust policies governing workplace relationships.

1. Restrict Supervisory Relationships: Prohibit managers from directly or indirectly supervising an individual with whom they have a romantic relationship. This measure directly supports SDG 8 by ensuring that career progression and compensation are based on merit, not personal affiliation.
2. Promote Transparency and Accountability: Establish clear procedures for disclosing relationships to prevent conflicts of interest. Such policies strengthen institutional integrity (SDG 16) and protect all employees from potential negative fallout.
3. Safeguard Vulnerable Employees: Corporate policies should be designed to protect the subordinate party and the wider team from the professional and economic consequences of these power-imbalanced relationships, thereby advancing goals for gender equality (SDG 5) and reduced inequalities (SDG 10).

Analysis of the Article in Relation to Sustainable Development Goals (SDGs)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 5: Gender Equality

• The article highlights a significant gender dimension in workplace romances involving power imbalances. It explicitly states, “The vast majority of relationships in our study involve a female subordinate and a male manager.” The severe negative consequences post-breakup, such as loss of earnings and employment, disproportionately affect women, thereby connecting the issue directly to gender equality in the economic sphere.

SDG 8: Decent Work and Economic Growth

• The core of the article revolves around workplace dynamics, career progression, earnings, and employment stability. It discusses how these relationships affect the subordinate’s career, leading to “preferential treatment” and pay increases, followed by sharp drops in earnings and employment rates after a breakup. Furthermore, it addresses the impact on the broader work environment, noting that these relationships lead to increased employee turnover, which undermines the principles of a stable and decent work environment.

SDG 10: Reduced Inequalities

• The article examines inequality through the lens of power dynamics within an organization. The relationship between a manager and a subordinate is inherently unequal. The study shows how this power imbalance can be leveraged, leading to temporary economic gains for the subordinate, but ultimately resulting in significant economic penalties and increased vulnerability post-breakup. This exacerbates economic inequality and highlights the risks faced by those in less powerful positions.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 5: Gender Equality

• Target 5.1: End all forms of discrimination against all women and girls everywhere. The article implies a form of systemic vulnerability for women in the workplace. The fact that female subordinates suffer severe career setbacks (“earnings fall by an average of 18%”) after a relationship with a male manager ends points to a situation where gender and power dynamics lead to discriminatory outcomes.
• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in… economic… life. The finding that subordinates (mostly women) are “13 percentage points more likely to leave the labor force” after a breakup demonstrates a direct barrier to their full and continued participation in economic life, hindering their career progression and potential for leadership.

SDG 8: Decent Work and Economic Growth

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article challenges this target by showing how pay can be distorted by personal relationships rather than the value of work. The initial 6% earnings increase is attributed to “preferential treatment,” not performance. The subsequent job loss and sharp earnings decline for the subordinate directly contradict the goal of stable, decent work.
• Target 8.8: Protect labour rights and promote safe and secure working environments for all workers. The article reveals how these relationships create an insecure working environment. For the subordinate, the end of a relationship can mean losing their job. For coworkers, “The perceived unfairness that results from office relationships erodes trust, leading talent to walk,” which contributes to an unstable and insecure environment for the entire team.

SDG 10: Reduced Inequalities

• Target 10.3: Ensure equal opportunity and reduce inequalities of outcome… by… promoting appropriate… policies and action in this regard. The article directly supports this target by advocating for company policies that mitigate risks. It states, “Clear policies can help mitigate these risks, particularly if they prevent managers from directly overseeing their partner’s work or influencing their career trajectory.” This is a call for institutional action to ensure more equal opportunities and outcomes.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicators for SDG 5 and SDG 8

• Change in Earnings: The article provides precise quantitative data on earnings fluctuations. The subordinate’s earnings “rise by 6%” during the relationship and “fall by an average of 18%” after it ends. This can serve as a direct indicator to measure economic vulnerability and pay inequality (related to Target 8.5), particularly when disaggregated by gender.
• Labor Force Participation Rate: The article states that “Subordinates are 13 percentage points more likely to leave the labor force in the year after the breakup.” This is a direct indicator of employment stability and women’s participation in the economy (related to Target 5.5 and Target 8.5).

Indicators for SDG 8

• Employee Turnover Rate: The research found that after a romance begins, “employee retention at the organization drops by six percentage points, meaning turnover is 14% greater than in comparable firms.” This is a measurable indicator of workplace stability and morale, reflecting the quality of the work environment (related to Target 8.8).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: fortune.com