When fairness fails, people withdraw: The hidden cost of unfair workplaces

In today’s organisations, conversations about employee well-being often focus on workload, burnout, or work–life balance. Yet one of the most powerful forces shaping how people feel and behave at work often goes unnoticed: fairness. When employees believe that decisions are biased, processes are opaque, or treatment is inconsistent, the damage goes far beyond dissatisfaction. It quietly reshapes emotions, relationships, and even how knowledge flows inside organisations.

Our recent research with the title ‘The hidden toll of unfair workplaces: examining the mediating role of workplace loneliness’, published in the International Journal of Conflict Management in January 2026, explores this invisible chain reaction and reveals a crucial insight: unfair workplaces do not just frustrate employees, they make them feel lonely. And that loneliness, in turn, pushes people to withdraw, hide knowledge, and experience poorer psychological well-being.

Why fairness is more than a ‘nice-to-have’

Fairness at work, what researchers call organisational justice, includes how outcomes are distributed, how decisions are made, how information is shared, and how people are respectfully treated. Employees constantly evaluate these signals, often by comparing their treatment with others’. These evaluations are not abstract judgements; they are deeply emotional experiences.

Using data from full-time employees across organisations, our study shows that when people perceive low levels of fairness, they are far more likely to feel socially disconnected at work. Even in offices filled with colleagues, employees can feel isolated, unseen, and excluded when fairness is missing. This sense of loneliness is not about being physically alone—it is about feeling psychologically cut off from the social fabric of the organisation.

Loneliness at work: The missing link

Workplace loneliness has typically been studied as an individual experience, but our findings suggest it is often organisationally produced. When employees feel that rules are unfair or that others are favoured, they begin to emotionally withdraw. Over time, this withdrawal erodes trust and weakens informal social ties.

Why does this matter? Because loneliness fundamentally changes how people behave.

Our research shows that lonely employees are significantly more likely to engage in knowledge hiding, deliberately withholding information, expertise, or insights that others request. This is not accidental silence; it is a defensive response. When people feel excluded or undervalued, they protect themselves by limiting what they share.

At the same time, loneliness takes a toll on psychological well-being. Employees who feel socially disconnected report lower positive mood, reduced vitality, and poorer mental health. In other words, unfairness does not just harm morale—it quietly drains emotional energy and resilience.

The double cost: Performance and well-being

One of the most striking insights from our study is that workplace loneliness acts as a bridge between fairness and outcomes that organisations deeply care about.

What leaders and organisations can do differently

The practical implications of these findings are clear and urgent.

1. Treat fairness as a daily leadership practice: Fairness is not only embedded in formal HR policies; it is enacted in everyday interactions. Transparent decision-making, consistent application of rules, respectful communication, and clear explanations all signal inclusion. Leaders who overlook these ‘small’ behaviours risk creating emotional distance within their teams.

2. Recognise loneliness as an organisational signal: Loneliness should not be dismissed as a personal issue. It is often an early warning sign of deeper problems in how employees experience fairness, voice, and belonging. Regularly assessing perceptions of justice and social connection can help organisations intervene before withdrawal sets in.

3. Address knowledge hiding at its emotional roots: If employees are reluctant to share knowledge, the solution is not simply better incentives or monitoring. Organisations must first rebuild trust. Creating psychologically safe spaces for collaboration, encouraging peer support, and reducing status-based favouritism can significantly lower defensive behaviours.

4. Link well-being initiatives to fairness and inclusion: Well-being programmes are most effective when employees feel respected and valued. Counselling services, support groups, and mental health resources should be complemented by fair processes and inclusive leadership practices.

A broader reflection

At a time when organisations are grappling with disengagement, silent quitting, and collaboration breakdowns, our findings offer a sobering reminder: fairness is not just a moral ideal; it is a strategic necessity. When fairness fails, people withdraw emotionally. When people withdraw, knowledge stops flowing. And when knowledge stops flowing, both performance and well-being suffer.

By paying closer attention to how fairness is experienced and by recognising loneliness as a hidden but powerful consequence, organisations can move toward workplaces that are not only more just but also more connected, resilient, and productive.

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