Should a company offer job applicants money to NOT take up the job?

Yes if it wants to induce cognitive dissonance – the feeling you get when behaviour and belief don’t match. Like when you gorge on that sizzling brownie with ice-cream and chocolate sauce when you know it’s going to make you put on. But then you say what the hell ‘Life is an ice-cream, enjoy it before it melts.’ Here’s an interesting way a company uses the same principle of cognitive dissonance to meet its hiring goals, by paying applicants to NOT take up the job. This complicated phenomenon is best explained by behavioural scientist Dan Ariely…

“There’s this interesting company called Zappos. Zappos is a shoe company. One of the interesting things about Zappos, is the hiring process.

They bring people in for training and train them for around a week. At the end of this training, they say to people, we would love for you to be part of the Zappos family. But this is not the right place for everybody. And if this is not the right place for you, we don’t think this is something good for you. And therefore, we will pay you to NOT take the job.

They started by offering people $500. They increased it to $2000 and then increased it to $4000. Think about it. What a crazy idea. You come, you do a week of training. At the end of week of training they say we’ll pay you $4000 not to take the job. Now these are not highly paid people, these are people who are going to get paid $12, 14, 15 an hour to do customer service on the phone.

Why would Zappos pay people not to take the job? There are basically two reasons. The first reason – you actually don’t want the people who don’t like their jobs so much to be around because not only are they not going to do a good job, they’re going to pollute other people. And Zappos is a fantastic customer service company.

The second thing has to do with cognitive dissonance. Cognitive dissonance is about the fact that if we behave one way but don’t believe in the same way, this creates a tension, what Leon Festinger called dissonance.

Can we change what we’ve done? No. We’ve done it already. Maybe we can change what we believe. And that actually happens quite a lot. You behave a certain way, and then you shift your belief to, to fit with that.

So what happened to Zappos? You have these $4,000. Now, it’s not as if Zappos is telling you, you know what, for the rest of your life every morning you could wake up and decide if you want to take the money or stay on the job. No, no. You have 48 hours. And if the end of 48 hours you decide not to take the money, you wake up every morning for the rest of your career at Zappos and you’ll tell yourself, I could have gotten $4000 but I decided to work at Zappos. That means that if I say no to this offer, then I am buying in. And because of that, you go to work much more excited.

Only 2% of Zappos trainees take the money and leave. Often they are the same people the trainers already had doubts about.”

Behavioural Design for Urban Planning

We were happy to be invited to speak at Milano Arch Week 2019 on applying Behavioural Design to urban planning or as they liked to refer to it ‘Urban Regeneration’. We are happy that architects are opening up to our practice of Behavioural Design to build cities that work for people living in it and to use architecture to modify public behaviour.

Our talk included Behavioural Design examples from my Instagram feed. Some of the examples we referred to were the Ballot Bin that gets cigarette smokers to stub their cigarette buds at the Ballot Bin because they are motivated to vote for their choice, whether the choice is about your favourite football player or some other topical question. We were asked about Bleep horn reduction system as a Behavioural Design nudge to reduce drivers’ honking. We spoke about how the Bureau of Energy Efficiency (BEE) in India has made it mandatory for appliances to come with star ratings and how it’s nudging people to choose higher star rated appliances so that people can save money and in doing so also consume lower power and contribute towards climate crisis in a positive manner. Some of the other examples we spoke about were Behavioural Design nudges to reduce overspeeding, getting people to – use trash bins in the outdoor, use sanitizers in hospitals, use stairs instead of escalators, and many more. If you’re curious to know more, click here.

Behavioural Design & Sustainability Workshop

We were very happy to be invited by a foundation known as Acting for Good based out of Hong Kong, for a workshop on applying behavioural science for sustainability, conservation and climate change conducted by persuasion stalwarts Influence at Work (UK). Nature, wildlife and conservation is very close to our heart. Sure we’ll continue to work with commercial clients on consumer, employee and investor behaviour change, but solving behavioural aspects of climate change is something we are likely to dedicate a big portion of our time towards, because we all need to begin reversing the damage we’ve been causing to our planet. There isn’t a bigger challenge facing mankind and we’d like to be on the side of creating sustainable Behavioural Design solutions.

We loved interacting with environmentalists, ecologists, wildlife protectors, conservationists, trainers working in Asia as well as catching up with behavioural scientists from Influence at Work (UK). The workshop was very well put together. And the participants’ understanding of the behavioural science principles was also amazing. We got along so well, it felt our meeting had to happen. We already miss them. We’ve also begun thinking about behavioural challenges related to climate change and conservation. We can’t wait to spread the workshops and to work on some of the tough behavioural challenges in Asia being faced by workers on ground. We’ll communicate on this topic as and when we make progress. The journey has just begun and we’re hungry to make a big difference.

Behavioural Design for Employee engagement at Nasscom

It was fun speaking on applying Behavioural Design to improve employee engagement at Nasscom Technology & Leadership Forum on 21st Feb 2019 at Grand Hyatt, Mumbai. I spoke about few high-impact low-cost Behavioural Design nudges, based on experiments in behavioural science, that demonstrate how employee engagement and experience can be improved at the workplace. Given that employee engagement is at abysmally low levels at a lot of companies, it’s high time to apply behavioural science to transform processes like appraisals, feedback, learning, rewards, recognition, productivity, collaboration amongst other experiences to improve employees’ performance and happiness. The Behavioural Design nudges shared raised a good amount of smiles and curiosity. There were inquiries to deliver talks at different companies and do projects to change employee behaviour. Let’s see which of them happen. After all Behavioural Design is about improving conversions.

The journey from taking the lift to walking the stairs

The journey from taking the lift to walking the stairs

How often have we heard that we must take the stairs especially if we need to go to Floor nos. 1/2/3, yet how many times do we take it? It’s an exercise that can be so easily incorporated into everyday life, but awareness yet again doesn’t translate into action.

So a few behavioral scientists put a sign at the bottom of the stairs telling us that walking up the stairs burns about five times as many calories as taking the lift. Sixteen studies analyzed this intervention and found that on average, stair use increased by 50%. Sure this is from a low baseline, because not many people generally use the stairs in the first place, but it does demonstrate that a small nudge can do more than any big-budget-ad-campaign to change behavior. Few stations in Tokyo, Japan like Tamachi station have implemented it by mentioning the number calories burned with each step. And a friend of ours says he feels better while walking up the stairs because he can see how many calories he’s burning with each step.

Of course there’s a way of making climbing stairs fun like the Volkswagen piano staircase, but putting signs is probably a thousand times cheaper.

Source: R.E. Soler, K.D. Leeks, L.R. Buchanan, R.C. Brownson, G.W. Heath and D.H. Hopkins – Point-of-decision prompts to increase stair use: A systematic review update – American Journal of Preventive Medicine 38, no.2 (2010): S 292 – S 300

Psychology and Physiology are deeply connected – Part III

Continuing the series of ‘Psychology and Physiology are deeply connected’, this is the final one.

This experiment is popularly known amongst psychologists as ‘The Love Bridge’ study, named after the bridge in Capilano Canyon, Vancouver where the experiment took place. The suspension bridge spans 450 feet and hovers 230 feet above the ground, causing it to sway as the wind blows. There was another bridge in the area that was a small but sturdy wooden bridge bordered by guardrails, just ten feet off the ground.

At various times throughout the day, researchers Donald Dutton and Arthur Aron, had a young female assistant approach men between 18-35, as they stepped off the end of each bridge with a scripted story – that she was a psychology student conducting a study on the effects of exposure to scenic attractions on creative expression. The assistant would then ask each man to fill out a short survey. When done, she would offer to tell him about the study when she a little bit more time. Then she would write down her name and number and hand it over to the men. Most men happily accepted it and walked off.

As expected the female assistant started getting calls from the men. While only two of sixteen men who crossed the small sturdy wooden bridge called, half of the eighteen men who crossed the suspension bridge called. Why did she miraculously become more attractive to the men who crossed the suspension bridge than to the men who crossed the small sturdy wooden bridge?

Turns out that for the men who crossed the suspension bridge, anxiety and adrenaline translated into a heightened romantic interest in the assistant. Their physiological reactions affected their perceptions and behaviour.

But could the men who took the suspension bridge be more courageous and daring and therefore more likely to take a chance on calling the assistant? 

To test the possibility, the researchers went back to Capilano to conduct a follow-up study. This time the female assistant was stationed only at the end of the suspension bridge. She approached some of the men right after they crossed and others, ten minutes after they had finished crossing.

More men who met the assistant just after they crossed called, than the ones who were approached ten minutes later. The latter’s anxiety had subsided and their adrenaline levels had gone down.

No wonder going for a roller-coaster ride on a date makes sense.

Source: Attraction under conditions of high anxiety – Donald Dutton and Arthur Aron – Journal of Personality and Social Psychology 30 (1974): 510-17.

Towards better fuel efficiency standards (Mint)

Towards better fuel efficiency standards (Mint)

This article first appeared in Mint on 11th December 2018.

For years vehicle makers in India have promoted fuel efficiency by communicating how many kilometres per litre their vehicle delivers. But can people who care about fuel efficiency be able to easily calculate the cost of fuel over the lifetime of the vehicle, or over a long period of, say, five years, when fuel efficiency is measured in kilometres per litre (kmpl)? Consider this. If you were to buy a car that gave 15kmpl and cost ₹5 lakh, and were comparing it to another car that gave 12kmpl and cost ₹4.5 lakh, how would you make the decision? Most people think that the fuel efficiency between a car that gives 15kmpl is not that significantly different from a car that gives 12kmpl. Behavioural science studies find that making such calculations is not intuitive for most people. So they tend to use simple rules of thumb to make quick decisions, which leads to biases and errors.

For example, if you cover a distance of 100km using a car that gives 15kmpl, you’ll be consuming 6.67litres of fuel. If you cover a distance of 100km using a car that gives 12kmpl, you’ll be consuming 8.33litres of fuel. This doesn’t seem like a big difference, right? Now imagine you were comparing litres per kilometre (lpkm) expressed as litres per 100,000km. Then at 15kmpl, you’ll need 6,667litres compared with 8,333litres for the 12kmpl car. That’s a difference of 1,666litres and at ₹100 a litre, it comes to an additional fuel cost of ₹166,600.

Now the same facts, when
reframed in terms of litres per 100,000km, look substantial even though it’s the same fact as 15kmpl compared with 12kmpl. Even if we assume you drive about 10,000km a year, then at 15kmpl, you’ll need 667litres against 833litres for the 12kmpl car. That’s a difference of 166litres and at ₹100 a litre, it comes to an additional fuel cost of ₹16,660 per year. So measuring fuel efficiency in a more tangible manner as lpkm can change the way consumers perceive fuel costs and has the potential to alter their choice altogether. Keeping in mind that fuel costs mostly increase every year, kmpl as a measurement of fuel efficiency becomes even less accurate.

Duke University professors Richard P. Larrick and Jack B. Soll wrote about this way back in 2008. They called it the mpg or miles per gallon illusion. For ease of understanding, we’ll use the metric system used in India and illustrate the mpg illusion in terms of kmpl.

Consider a decision between two cars—a current vehicle and a new vehicle that is more efficient. Which improvement do you think will save the most fuel over 10,000km—(a) an improvement from 10 to 11kmpl; (b) an improvement from 16.5 to 20kmpl; (c) an improvement from 33 to 50kmpl? In most likelihood your answer will be c. But surprisingly, all options save the same amount of fuel over 10,000km: about 100litres.

Equal increases in kmpl are not equal in gas savings. Kilometres per litre can be confusing when thinking about the benefits of improving kmpl. For example, an increase from 10kmpl to 20kmpl produces more savings than does an increase from 20kmpl to 40kmpl.

Behavioural science studies have shown that most consumers do not understand the non-linear nature of the kmpl measure. They tend to interpret kmpl as linear with fuel costs. People tend to underestimate the fuel cost differences among low-kmpl vehicles and to overestimate fuel costs among high-kmpl vehicles.

As a result, buyers may well underestimate the benefits of trading a low-kmpl car for one that is even slightly more fuel-efficient. At the same time, they may overestimate the benefits of trading a high-kmpl car for one that has even higher kmpl.

Consumers don’t have that much motivation, time and attention to understand this issue. Even hardcore auto enthusiasts are likely to be making intuitive comparative judgements based on kmpl and are likely to make poor recommendations.

That’s why the researchers Larrick and Soll came up with the behavioural design solution of gpm (gallons per mile) or, in our case, litres per kilometre measured over meaningful distances. Think about which is more useful to know: How far you can drive on a litre of fuel? Or, how much fuel will you use while owning a car?

Kmpl answers the first question and lpkm answers the second question. Also, gpm or lpkm gets directly translated to cost of fuel for the consumer.

In US, the Environmental Protection Agency and department of transportation revised the fuel economy label to also include gpm (gallons per 100miles) and fuel cost over five years compared to the average, in addition to mentioning the mpg. In Europe, fuel consumption labels communicate litres/100km. In India, we’re still following kmpl, but it is difficult to compare kmpl of one car with another that costs a bit more, but has a higher kmpl number or compare a car that costs a bit less and has lower kmpl number.

What matters is how much money we will be spending on fuel over the lifetime of driving the car. And that can directly be calculated by lpkm. Not just that, if appliances like refrigerators can have behavioural design nudges like the energy consumption star ratings, why can’t vehicles get a fuel consumption star rating based on lpkm?

We owe this article to not just Duke University professors Richard P. Larrick and Jack B. Soll, but also to behavioural economist stalwarts Richard Thaler and Cass Sunstein because of whom we chanced upon the work of the former professors.






Psychology and Physiology are deeply connected – Part II

Psychology and Physiology are deeply connected - II

We found the connection between Psychology and Physiology so intriguing that we did more research and found more studies done on it. Intuitively it makes sense – the mind affects the body and the body affects the mind, but chancing upon hard scientific evidence makes it even more convincing.

So Becca Levy and colleagues at Yale got senior citizens over the age of 70 to take a special hearing test. A sequence of three ascending pitches for each ear was played. Each time a senior citizen heard a tone, they were supposed to raise their hand. The average score was 3.53 out of 6.

Next the seniors were asked to write the first five words that came to mind when they thought of an old person. The researchers noted how each senior responded and categorized each answer. The first category was from very positive (e.g. compassionate) to very negative (e.g. feeble). The second category was from external (e.g. white hair) to internal (e.g. experienced). The researchers got two sets of data – hearing test and attitude profile of each senior.

Three years later, the same seniors were invited to take the same hearing test again. This time the average score dropped. But not all participants’ hearing deteriorated equally. Those seniors who used negative and external descriptors to describe old age were worse off. Even after isolating other factors that would diminish hearing e.g. medical condition, the researchers found that the negative and external descriptors were responsible for a 0.7-point drop in a senior’s score – amounting to eight years of normal aging – in just three years. Even participants who scored a full 6 in the first round, and had used negative and external descriptors, experienced worse off diminished hearing.

This proves that negative and external feelings about old age can actually make people physically age faster. The effect is not limited to hearing alone, but to memory loss, cardiovascular weakness and even a reduction in overall life expectancy by an average of 7.5 years.

Sources:

Hearing decline predicted by Elders’ stereotypes – Becca Levy, Martin Slade, Thomas Gill – Journal of Gerontology: Psychological Sciences 61B (2006): 82-88

Longevity increased by positive self-perceptions of aging – Becca Levy, Martin Slade, Suzanne Kunkel and Stanislav Kasl – Journal of Personality and Social Psychology 83 (2002): 261-70

Longitudinal benefit of positive self-perceptions of aging on functional health – Becca Levy, Martin Slade and Stanislav Kasl – Journal of Gerontology: Psychological Sciences 56B (2002): 409-17

Improving memory in old age through implicit self-stereotypes – Becca Levy – Journal of Personality and Social Psychology 71 (1996): 1092-1107






Psychology and Physiology are deeply connected – Part I

Psychology and Physiology are deeply connected

How do you feel when someone tells you how beautiful/handsome you look? Doesn’t it change your self-perception even if for few minutes or hours? But guess what, it has effects beyond your imagination.

In one of the most fascinating studies we’ve read, fifty-one women were made to have a short conversation on the phone with randomly selected men, thanks to researchers Mark Snyder, Elizabeth Tank and Ellen Bercheid. The women chitchatted about ordinary things – what they did for a living, their background – things you’d normally chat with strangers. But unlike the women, each man had received a bio and a snapshot of her. The bio was accurate, but the photos were fake. Half were of very pretty women, and other half of less attractive women.

As expected the men glanced through the bios, but they gave a hard look at the photos. Before talking to the women, each man was asked to rate his expectations of her. First group of men who saw photos of pretty women expected to interact with sociable, poised, humorous and socially adept women. Second group of men who saw photos of less attractive women expected to interact with unsociable, awkward, serious and socially inept women.

This where the experiment really began. The researchers recorded the calls and created clips of the women’s voices only. These clips were played out to a third group of random men, who knew nothing about the experiment. Listening to just the women’s side of the conversations, this third group of men were asked to rate their expectation of the women. Guess what, they attributed the same traits to the women that men of the first and second group had attributed to them, based on their fake photos.

How did this happen? The researchers explained – Once the men of the first and second group, formed their opinion of the women, it affected every aspect of how they interacted with them. The men talking on the phone with someone who they believed to be pretty, listened more actively and were more engaged. These “pretty” women on the other end unconsciously picked up on cues the men were sending them and took on the characteristics that the men expected them to have. Being thought of as beautiful made the women actually think of themselves as beautiful and exhibit their ‘beauty’ in their conversations. The third group in turn picked up on the cues from the voices of the “pretty” women and rated them as sociable, poised, humorous and socially adept women! Similar was the outcome for women’s voices based on the second group of men’s opinions.

Source: ‘Social perception and Interpersonal behavior: On the Self-fulfilling nature of social stereotypes’ – Journal of Personality and Social Psychology 35 (1977): 656-66.



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