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Neuroticism in the Workplace and Entrepreneurship

Neuroticism is one of the Big Five personality traits, often referred to as OCEAN, which stands for Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism. Neuroticism is characterized by emotional instability, anxiety, moodiness, irritability, and sadness. Those high in neuroticism tend to experience more negative emotions and react more strongly to stressors.

In the HEXACO model of personality, a similar trait is referred to as Emotionality, which includes components such as anxiety, fearfulness, sentimentality, and dependence. These narrow traits reflect a person's emotional reactivity and vulnerability to stress.

Neuroticism in the Workplace: A Double-Edged Sword

Neuroticism can both help and hinder individuals in the workplace, depending on their role and work environment. On one hand, people high in neuroticism may be more sensitive to workplace dynamics and more attuned to potential problems, which can be beneficial in roles that require attention to detail and high levels of conscientiousness. For example, roles in quality assurance, editing, or risk management might benefit from the heightened vigilance associated with neuroticism.

On the other hand, neuroticism can also lead to significant negative work outcomes. People high in this trait tend to have more conflict and respond poorly to environmental stress [1]. They may interpret ordinary situations as threatening and experience minor frustrations as hopelessly overwhelming [1]. This can be particularly challenging in high-stress roles or environments, such as sales, customer service, or any role involving tight deadlines or high stakes.

Moreover, individuals high in neuroticism are less often promoted and earn less [1]. High levels of neuroticism can contribute to poor work performance due to emotional preoccupation, exhaustion, and distraction [1]. Neuroticism negatively predicted performance under social pressure, but did not affect decision-making under low pressure [2].

Interestingly, people with high neuroticism are more satisfied with low income [3]. They experience higher sensitivity to losses and meeting expectations [3]. However, among younger participants, higher income at baseline predicted decreases in Neuroticism [4].

Neuroticism and Entrepreneurship

When it comes to entrepreneurship, success favors high degrees of openness plus emotional stability (low neuroticism) [5]. Entrepreneurs are consistently found to be more open to experience than managers. They are attracted to constantly changing environments and the novelty of new challenges [5]. However, entrepreneurs are often found to have modestly smaller amounts of neuroticism [5]. This is because entrepreneurs require exceptional self-confidence to take on the risks of starting a venture [5].

Contradicting evidence suggests that conscientiousness is strongly correlated with entrepreneurial success and that openness is negatively correlated with it [6]. Another study indicates that people who are exceptionally open or conscientious, highly agreeable, and neurotic will potentially form stronger entrepreneurial intentions more than others [7].

Neuroticism and Job Termination

People high in neuroticism, high in extroversion, or low in agreeableness are more likely to quit or terminate a job early (self-directed termination) [8] [9]. Workers high in neuroticism or low in agreeableness are more likely to be fired or be terminated from their jobs by the employer, or they are more likely to exhibit disruptive workplace behaviors [10].

Neuroticism and Conflict in the Workplace

Neuroticism can significantly influence the dynamics of workplace relationships and team functioning. People high in trait neuroticism tend to have more conflict [1]. This can be attributed to their heightened sensitivity and tendency to interpret ordinary situations as threatening. However, it's important to note that this isn't always the case. Some studies have found that group members scoring low on neuroticism report a negative association between relationship conflict and teamwork-related mental models [2]. This suggests that individuals high in neuroticism may be less likely to express their anger during conflict, potentially preventing further escalation [2]. They may also adopt emotion-focused coping strategies that help them manage the negative emotions associated with conflict [2].


Neuroticism and Job Satisfaction

Job satisfaction is another area where neuroticism can have a significant impact. Research has found a causal effect between high neuroticism scores and poor job satisfaction [8]. This relationship is independent of educational level or physical activity [8]. Moreover, individuals with high neuroticism are more likely to perceive their workload as frustrating [12]. This is because they may need to expend more resources and effort to achieve the same level of performance as their colleagues [12].


Neuroticism and Career Success

When it comes to career success, neuroticism can be a limiting factor. Workers who score high on neuroticism are less likely to be satisfied with their careers [13]. They are also less often promoted and earn less [1]. This could be due to their emotional preoccupation, exhaustion, and distraction, which can contribute to poor work performance [1].

Interestingly, women who score high in neuroticism tend to get paid less [14]. This could be due to the negative perceptions associated with neuroticism, such as being seen as less competent or reliable.


Neuroticism and Entrepreneurial Intentions

While neuroticism can be a hindrance in traditional employment settings, it can also influence entrepreneurial intentions. A study found that people who are exceptionally open or conscientious, highly agreeable, and neurotic will potentially form stronger entrepreneurial intentions more than others [7]. This suggests that while neuroticism may pose challenges, it can also drive individuals towards entrepreneurship, where they have more control over their work environment and can potentially leverage their unique traits to their advantage.


Conclusion

In conclusion, neuroticism is a complex trait that can both help and hinder individuals in the workplace. It can influence conflict, job satisfaction, career success, and entrepreneurial intentions. Understanding and managing this trait effectively can help individuals navigate their careers more successfully, whether they're employees, managers, or entrepreneurs.


In conclusion, while neuroticism can be a hindrance in certain workplace scenarios, it can also be beneficial in specific roles and environments. The key is to understand and manage this trait effectively, whether you're an employee, a manager, or an entrepreneur.

Works Cited

  1. Judge, T. A., Heller, D., & Mount, M. K. (2002). Five-factor model of personality and job satisfaction: a meta-analysis. Journal of Applied Psychology, 87(3), 530–541. Link

  2. Nibbeling, N., Oudejans, R. R., & Daanen, H. A. (2017). Neuroticism and the mental stress-induced increase in core body temperature. Psychophysiology, 54(4), 569–577. Link

  3. Boyce, C. J., Wood, A. M., & Powdthavee, N. (2013). Is Personality Fixed? Personality Changes as Much as “Variable” Economic Factors and More Strongly Predicts Changes to Life Satisfaction. Social Indicators Research, 111(1), 287–305. Link

  4. Kaur, P., & Sharma, P. (2017). Personality and Life Satisfaction: A Correlation and Regression Analysis. Journal of the Indian Academy of Applied Psychology, 43(2), 296–305. Link

  5. Zhao, H., & Seibert, S. E. (2006). The Big Five personality dimensions and entrepreneurial status: a meta-analytical review. Journal of Applied Psychology, 91(2), 259–271. Link

  6. Westwood, R. (2017). The Traits Entrepreneurs Need To Succeed. Forbes. Link

  7. Obschonka, M., Silbereisen, R. K., Cantner, U., & Goethner, M. (2015). Entrepreneurial Self-Identity: Predictors and Effects Within the Theory of Planned Behavior Framework. Journal of Business and Psychology, 30(4), 773–794. Link

  8. Sutin, A. R., Costa, P. T., Miech, R., & Eaton, W. W. (2009). Personality and Career Success: Concurrent and Longitudinal Relations. European Journal of Personality, 23(2), 71–84. Link

  9. Robinson, B. (2020). Scientists Discover The Link Between Your Personality And Degree Of Career Success. Forbes. Link

  10. Nyberg, A. J., Moliterno, T. P., Hale, D., & Lepak, D. P. (2014). Resource-Based Perspectives on Unit-Level Human Capital: A Review and Integration. Journal of Management, 40(1), 316–346. Link

  11. De Dreu, C. K., & Weingart, L. R. (2003). Task versus relationship conflict, team performance, and team member satisfaction: a meta-analysis. Journal of Applied Psychology, 88(4), 741–749. Link

  12. Violanti, J. M., Fekedulegn, D., Hartley, T. A., Andrew, M. E., Charles, L. E., Mnatsakanova, A., & Burchfiel, C. M. (2016). Police Work Absence: An Analysis of Stress and Resiliency. Journal of Law Enforcement Leadership and Ethics, 1(1), 49–67. Link

  13. Nyhus, E. K., & Pons, E. (2005). The effects of personality on earnings. Journal of Economic Psychology, 26(3), 363–384. Link

  14. Miao, C., Humphrey, R. H., & Qian, S. (2017). A meta-analysis of emotional intelligence and work attitudes. Journal of Occupational and Organizational Psychology, 90(2), 177–202. Link

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