A recent study shows that employees who date their bosses often receive a noticeable increase in pay and career opportunities, with earnings rising by about 6%. The advantages go beyond just money. These employees may receive mentoring, quicker promotions and extra support when their partner is in a senior role. However, despite short-term gains, the long-term risks can be serious, particularly after a breakup. The negative impacts tend to be more severe for women.
Office romances are still common in today’s work environment, even with growing scrutiny. In Australia, roughly one in four workers have dated a colleague, particularly in white-collar sectors. Some employers and governments have tried to address the complications. In 2018, Australia introduced a policy that banned ministers from having sexual relationships with staff after a public scandal. The aim was to ensure respect, fairness and transparency in the workplace.
The study, published by the National Bureau of Economic Research, examined cohabiting couples in Finland where one partner had a managerial role. The most common pairings were women dating male managers, though men in relationships with female managers typically saw the biggest salary increases. After these relationships ended, the financial effects became more negative. Women faced an average earnings drop of 18% that could last up to four years. Men in subordinate positions often had even larger losses. In many of these cases, the employee left the company and accepted a less favourable job.
These relationships can also affect other staff. Colleagues may see promotions or special treatment as the result of favouritism rather than merit. This perception can lead to resentment, lower engagement and higher turnover. HR experts say these concerns are among the top challenges when dealing with office romances. If workplace benefits or conflicts seem biased, they can damage team unity and harm company culture.
Experts recommend that companies take active steps to manage such risks by creating clear personal relationship policies. These policies should require disclosure and emphasise fair treatment, especially in situations involving power differences. Businesses are encouraged to include these guidelines in employee handbooks and address the topic clearly during onboarding. Transparent policies can help prevent sexual harassment claims, protect sensitive information and maintain trust and fairness within the company.
Workplace relationships can't always be avoided, but taking steps early can help reduce disruption and prevent bigger issues down the track.
