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Why Being a Nice Boss Can Pay Dividends

latestThe Harvard Business Review notes that new developments in organizational research suggest that tough managers “often mistakenly think that putting pressure on employees will increase performance. What it does increase is stress—and research has shown that high levels of stress carry a number of costs to employers and employees alike.”

“Stress brings high health care and turnover costs. In a study of employees from various organizations, health care expenditures for employees with high levels of stress were 46 percent greater than at similar organizations without high levels of stress. In particular, workplace stress has been linked to coronary heart disease in both retrospective (observing past patterns) and prospective (predicting future patterns) studies. Then there’s the impact on turnover: research shows that workplace stress can lead them to look for a new job, decline a promotion, or leave a job.”

Other research has shown “that leaders who project warmth – even before establishing their competence – are more effective than those who lead with their toughness and skill. Why? One reason is trust. Employees feel greater trust with someone who is kind.”

“And an interesting study shows that when leaders are fair to the members of their team, the team members display more citizenship behavior and are more productive, both individually and as a team. Jonathan Haidt at New York University Stern School of Business shows in his research that when leaders are self-sacrificing, their employees experience being moved and inspired. As a consequence, the employees feel more loyal and committed and are more likely to go out of their way to be helpful and friendly to other employees. Research on ‘paying it forward’ shows that when you work with people who help you, in turn you will be more likely to help others (and not necessarily just those who helped you).”