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11/20/2020

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Loved this lesson, Chris! Such predictably irrational behavior (from the great book by Prof. Dan Ariely, founder of the Center for Advanced Hindsight) is vitally important to the Total Rewards field.

Behaviors driven by financial or commercial motives (like doing a job) involve different psychological dynamics than behaviors driven by social reasons. Volunteers will fill flood control sandbags for free while rejecting the exact same activity if offered a high hourly rate to do it "as a job". Folks who would refuse an offer of money to change your tire will do it for nothing to help a mom stranded on the roadside with a van full of kids and a flat tire.

All motives are not commercial or financial. Money is not the only consequences of value. Financial income is frequently inferior to psychic income. Hence my meme: "not all rewards jingle."

We ignore such obvious but non-statistical and un-numeric realities about behavioral economics at our peril. There is also another point about knowing the price of everything and the value of nothing. That could be us!

I agree with the diversity of duties getting people energized. You lost me when you said you didn't pay them for the "work". Even if volunteering for the out of normal job scope "work", I too would have hedged my bets and paid these employees for their time. Or at least had them take time of to offset the hours worked at home. Otherwise how can you make the comparison for their paid work vs unpaid activities? We all have hobbies we do outside of work, some of which could come into play on the job. Its a gray area, I think, so I would go with who is the end product for? If activity is ultimately on behalf of the company, I would compensate the employee.

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