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When bonuses backfire

 

 

Managing people can be frustrating. You just want them to turn up and do a good job. While it sounds simple, getting employees to turn up can be surprisingly difficult, and unplanned absences can negatively impact your customers, your team’s morale and your stress levels. So, will a bonus for attendance encourage employees to turn up?

That’s what researchers were interested in testing.

Working with a large German supermarket retailer, 346 junior staff...

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Mental accounting at the airport

 

Examples of mental accounting don’t get better than this:

“Me at the airport at 6am after eating my $30 meal, drinking my $12 water, and spending $80 on an Uber…all because I booked a 6am flight to save $50”.

What is mental accounting? Our tendency to weight money differently according to where it’s come from and where it’s going.

The $50 he saved was a win for the “paying for my flight” mental account.

But the money spent getting to...

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The science of influence has an influencing problem

 

 

There are five myths about behaviour that persist despite being debunked by social sciences like behavioural economics.

In this video, I share what they are and why the science of influence has its own influence problem!

 

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$170,000 behaviour failure

 

After Stonehenge, the Roman Baths in Bath is the UK’s second most popular tourist attraction. Making a wish was big business for the Baths, with visitors throwing more than $170,000 worth of coins into the pool annually.

When coins were banned, that all changed.

From March 2022, visitors have instead been asked to make a contactless payment or put money in a cash box.

But most chose not to. Only $4,500 was donated last year.

Now, there are clear reasons why banning coins was...

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Five myths about behaviour, and why they won’t go away

 

Here’s something that has always confounded me.

If behavioural science is so good, why aren’t more people using it?

Like Robert Cialdini’s famous study on social norms influencing hotel guests to reuse their towels. I’m still to visit a hotel that is correctly using a message about how many guests have re-used their towels to get me to do likewise.

The thing is, when people read or hear about behavioural economics, and more broadly, behavioural science, they typically...

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