The Appraisal Revenge Effect: Why Pushing Back Can Trigger a Power Move

Let us consider an employee who has been doing everything right for years. He has been exceeding his goals, taking on extra work, and contributing significantly to the company’s success. During his routine performance review, he raises a legitimate concern regarding his compensation in a calm and respectful manner.

He explains how his salary does not adequately reflect his contributions and market value. The manager responds well to this, but over time, certain changes become apparent. He is given a lower rating, his responsibilities are reduced, and he is given fewer opportunities to lead critical projects. What started off as feedback seems to be taking on a more personal connotation, and experts say this is quite common.

This is referred to as the ‘appraisal revenge effect.’ Experts say that this is where employees who stand up for themselves are penalized rather than rewarded. However, this does not happen in any dramatic manner but in more subtle ways.

The rise of the “pay raise trap”

The discussions taking place on social media, including LinkedIn and Glassdoor, have highlighted the silent consequences of salary discussions.

A 2023 survey conducted by ResumeBuilder reported that 49 percent of employees who asked for a raise faced some negative response, including fewer responsibilities and promotions. This is a result of a larger problem associated with organizational behavior, in which employees asking for a raise are seen as a threat to balance.

Studies conducted and presented via media channels, including Frontiers in Psychology, suggest that this behavior is associated with “threat logic,” in which employees asking for a raise are seen as a threat to the balance of authority.

The underlying psychological basis for this behavior is strongly associated with the conservation of resources theory, which describes how individuals behave to maintain what they currently control.

This creates a challenging work environment for the employees, especially if they do not receive direct negative feedback. However, they will still suffer negative consequences.

The impact on employee well-being

The consequences of these dynamics at work extend far beyond performance reviews and promotions, touching on mental health as well as career confidence.

A study published in the National Center for Biotechnology Information reveals the following about the consequences of workplace stress: “Stress at work has been associated with increased levels of cortisol, which has been shown to impair decision-making, as well as increase anxiety. In these situations, employees may analyze interactions, doubt their communication skills, and experience low job satisfaction.”

In another study published in Frontiers in Psychology in 2021, job insecurity has been shown to have a significant negative influence on well-being, especially when coupled with bad interactions at work.

Experts advise that it is better to have structured and prepared conversations about salaries instead of having spontaneous conversations. A strong case can be prepared and presented to shift the conversation from an emotional to a factual conversation.

A smarter way to respond

If a change in the nature of workplace interactions is observed during or after a negotiation, it is necessary to deal with the situation in a composed and positive manner. It is advised to use words that are more likely to promote cooperation rather than conflict. This will help to ease the situation and maintain a professional tone in communication.

At the same time, employees must keep in mind that if opportunities are still being minimized or biased, there may be a bigger problem.

When it is time to move on

In some instances, the most effective course of action is to look elsewhere for opportunity.

The idea is not one of retaliation, but of strategic thinking. When workers are able to recognize the patterns early on and act on them with preparation, they can avoid situations of negative impact on their career and health.

The appraisal revenge effect may not be a dramatic phenomenon, but its implications can be substantial. It is a subtle process, and often the outcome is that the employee will question themselves instead of the process. Research and data on the workplace have indicated that the first step to effectively working with the revenge effect is to understand it, which will allow a professional to effectively advocate for themselves without losing control of the direction of their career.

Why Managers Default to Positivity

One of the reasons why some managers promote positivity is due to psychological self-protection, as they might think that the acknowledgment of some problems is a failure or weakness on their part as leaders of the company. Through the promotion of positivity, some managers might escape the discomfort of the situation, thus maintaining control over the image of the workplace from the internal and external perspectives.

As Maryam Kouchaki, a professor at Northwestern University’s Kellogg School of Management, states, leaders might be blind to the problems in the organization, as they might have identified themselves with the image of the organization, as mentioned in IndustryWeek. Leaders might have a problem handling some feedback, especially when the employees are already having a problem.

Positivity in the aforementioned situation is not support but rather maintaining the image of the workplace as if everything is going fine, even though it is not.

Emotional Intelligence and Communication Gaps

The other reason for the reaction is the low level of emotional intelligence of the manager. This affects the way the manager handles the concerns of the employees. Emotional intelligence is the ability of the manager to recognize the emotions and respond to the concerns of the employees.

According to the research conducted at Yale University, emotionally intelligent leaders build productive and satisfied teams. Emotionally intelligent leaders respond to the concerns of the employees instead of ignoring them. On the other hand, managers with a low level of emotional intelligence may give generalized reactions instead of listening to the concerns of the employees.

This leads to a communication disconnect, where the employees feel that the manager does not understand the full nature of the experience.

The Impact on Employee Wellbeing

This request to stay positive in the face of challenges and difficulties can also contribute to greater levels of stress and pressure felt by the employee. The employee does not feel supported, but feels as though they must suppress their concerns in order to fit in with the ideal attitude expected in the workplace.

As described by the Science of People, this pressure to stay positive is also linked to what psychologists have described as toxic positivity, or the denial of negative emotions. This can lead to burnout, decreased satisfaction with the job, and feelings of alienation. Employees can also feel disconnected from their work because they feel as though their voices do not contribute to change. This can lead to turnover as employees seek new places to work where their concerns will be taken seriously.

The Cost of Avoiding Real Conversations

Evading such conversations does not help to avoid the problem. Instead, it lets the problem grow. For instance, problems such as workload imbalance, conflicts between team members, and inefficiency can become larger problems if they are evaded.

Industry Week reporting on the issue of evading difficult conversations shows that evading such conversations can lead to future problems for the organization. For instance, it can lead to a reduction in productivity and a reduction in morale.

This is because the leader is evading the problem and not solving it.

This way of dealing with difficult conversations can also be a way of maintaining power imbalances. This is because the employees may be dissuaded from speaking up in the future.

This is especially true within the type of workplace culture that creates this type of atmosphere. A culture that is focused on having a positive outlook at all times can make it hard for employees to communicate if they feel as though they must have this type of attitude, even if they are having a bad time.

According to research done at Yale, cultures that focus on having an emotional awareness and communication style tend to have a better performance because employees feel comfortable communicating their ideas and thoughts. Cultures that do not allow negative communication tend to have issues they have yet to resolve.

A Subtle but Significant Signal

However, the phrase "stay positive" may seem harmless; if it is used in the wrong context, it may point to a larger underlying concern that may exist in the way communication is being conducted in the workplace.

According to research on workplace studies, it has been seen that acknowledging concerns does not make the organization weaker; it makes it stronger. The balance between being positive and acknowledging concerns is important to have in the workplace.

This phenomenon may help employees and management understand the difference between encouragement and avoidance, which is a step towards having a workplace where concerns are addressed.