Are your biases holding you back from reaching your career potential?
Today, discover the four major biases that might sabotage your success and learn how to overcome these limitations.
Hello and a very warm welcome to Episode No 70 of ‘Your Bravo Career’
My name is Mark Crossfield, I’m a Professional Career Coach / helping you to love your job and build a great career.
This podcast is about why your career matters
How you can enjoy what you are doing day each day at work
and how to build a great career along the way.
Introduction
Welcome everybody to Episode no 70, yes, that’s 7 …. Zero. 70
Today, I’m going to be talking about biases and how they influence our career choices and
why they are probably hindering your progress, even if you don’t realise it.
Of course, I will also be talking about what you can do to overcome these biases.
This is an action-orientated episode, as usual.
But first, what are our biases anyway?
Well, biases are unconscious patterns of thinking that can influence our judgments and decision-making processes.
They are mental filters or predispositions that shape our perception and interpretation of information.
These are hard wired, right, and …
They can affect how we process information, make assumptions, and form opinions, often without us being fully aware of it.
In the context of career choices, there are several biases which you need to know about and I’m going to be talking about the big four.
So, let’s get started …
Part 1
The first bias I want to discuss is the status quo bias. (Repeat)
This bias reflects our preference for maintaining the current situation rather than making changes.
When it comes down to it, most of us are hard wired for inertia.
You can see why this might be a problem in your career can’t you.
It's natural to feel comfortable with what we know and resist the uncertainty that comes with change.
However, this bias can hold us back from exploring new career possibilities and hinder our personal growth.
The status quo bias often stems from a fear of the unknown. We tend to overestimate the risks associated with change and underestimate the potential benefits.
But, as I’m sure you can see, by clinging to the familiar, we may miss out on exciting opportunities for career advancement and personal fulfilment.
Just being aware of these biases gives you a big head start in your career …
Ok,
Let’s talk about the second bias.
The second bias is the loss aversion bias: (Repeat)
Loss aversion refers to our tendency to have a stronger preference for avoiding losses rather than acquiring equivalent gains.
In a well-known experiment, participants are divided into two groups. One group is given a sum of money and told they have previously lost it, while the other group is given the same amount and informed they have found it.
It’s the same amount of money, let’s say £20
Both groups are then presented with a choice: they can either keep the money or take a gamble with the opportunity to win or lose additional funds.
The results of the study reveal an interesting pattern. Participants tend to exhibit a stronger aversion to losses than a motivation for gains.
Simply put, it’s better not to lose £20, than to find £20.
We are more inclined to hold onto what we already possess rather than taking calculated risks for potential rewards.
Even if it doesn’t make sense, we are often more focused on protecting what we currently have, even if it means staying in unfulfilling jobs or resisting new career paths.
The fear of failure and the perceived risks associated with change seem to outweigh the potential benefits.
That’s why it’s important to understand the impact of loss aversion bias on your decision-making, so you can become more aware of its influence and recognise that, well …
calculated risks can lead to substantial rewards, personal growth and career fulfilment.
Ok,
Let’s move onto the third bias.
The third bias is the Endowment Effect: (Repeat)
The endowment effect is the tendency to overvalue what we currently possess compared to potential alternatives.
This may seem like loss aversion, but this is different. This is about over-valuing what we have rather than focussing on what we could lose.
In the context of careers, this bias can again make us undervalue new possibilities and stick to our current job or industry, even if it no longer aligns with our goals or our work values.
The endowment effect often stems from our emotional attachment to our current roles or positions. We become attached to the familiarity, the routine, and the sense of identity associated with our current career path.
It’s essential, therefore, to periodically reassess our goals and aspirations to ensure we're not limiting our potential.
The final bias of the big 4 is the sunk cost fallacy (Repeat), which refers to our tendency to consider past investments, such as time and effort, rather than focusing on future benefits.
When we've invested significant resources into a particular career path, we might feel reluctant to change direction, even if it no longer aligns with our aspirations.
I see this regularly with clients in vocational professions – Lawyers, Doctors, Engineers etc. If you have spent 5 years at university and have 10 years experience in one industry for example, it’s understandable that you might focus on the time, effort and money spent getting to where you are.
This is particularly the case if you believe that you will need to repeat that process to find a new career.
The sunk cost fallacy can keep you trapped in unfulfilling careers because you fear wasting the time and effort you've already invested.
However, it's crucial to remember that the future is what matters most.
Evaluating the potential benefits and making informed decisions based on your current goals is key to overcoming this bias.
So I’ve discussed important biases - such as the status quo bias, loss aversion, endowment effect, and sunk cost fallacy …
And how these can significantly impact your career choices.
Recognising these biases and their influence is the first step towards making more informed decisions.
And remember, these biases often work together to create a mega bias, working at an unconscious level, preventing you from making a change in your career.
So,
I’m now going to give you some practical strategies to overcome these biases and help you to pave the way for a successful career transition.
I want to empower you to make confident career decisions.
Free from the restrictions of your biases
So,
Let’s keep things simple. The first step in overcoming these biases is to take a moment to look at your own biases and reflect on how they might be influencing your career choices.
As I described the biases - status quo bias, loss aversion, endowment effect, and sunk cost fallacy – did you recognise how these are in play in your own thinking?
By becoming conscious of these biases, you can start to challenge them and open yourself up to new possibilities.
This requires self-knowledge and self-reflection and a willingness to question your own assumptions.
Are you for example over valuing your present role or career choice. Do you worry that you might be worse off if you make a career change, do you focus on what you have previously invested in your career and does this sour your thoughts of doing something different? No judgement here, but …
Pay attention to these thoughts and feelings Are you holding onto a particular choice due to comfort or fear?
Being mindful of these biases allows you to make more objective decisions.
Next let’s talk about the importance of seeking different perspectives. Biases can be reinforced when we surround ourselves with like-minded individuals or limit our exposure to diverse perspectives.
Instead, actively seek out different opinions and experiences related to your career choices.
Engage in conversations, join professional networks, seek mentorship from people with different backgrounds and viewpoints. Speak to a career coach.
Exposure to diverse perspectives challenges your biases and broadens your understanding.
By engaging with individuals who have different career paths, you can gain valuable insights and consider options that you may have previously overlooked.
In a nutshell …
Embrace diversity as a catalyst for personal and professional growth.
So, my final practical strategy to overcome your biases is to be open to experimentation. Be open to experimentation.
Let's explore two strategies that can help you do just that.
First of all, instead of relying solely on your assumptions or past experiences, actively engage in career and job research and exploration.
Seek out information about different careers, industries, or skill sets that pique your interest.
Attend workshops, webinars, or conferences to gain first-hand knowledge and exposure to new possibilities.
By seeking out information and exposing yourself to new ideas, you can challenge your biases and expand your understanding of what’s possible.
Researching different career paths can help you to discover hidden passions or skills that align better with your aspirations. Embrace a curious mindset and let exploration guide your decision-making process.
The final strategy is to embrace experimentation by taking small steps.
Overcoming biases often requires taking calculated risks and embracing experimentation. Instead of making abrupt and drastic changes, consider taking small steps towards exploring new career paths.
This could involve you taking on a side projects, volunteering, or pursuing part-time opportunities in areas that interest you.
Experimentation allows you to gather real-world experiences and test the waters before committing fully. It reduces the fear associated with major career transitions and helps you to build confidence along the way.
The book
Working Identity by Herminia Ibarra is a great book to read on this subject. Herminia explains why you must act before you are fully ready through a process of small experiments.
So embrace the mindset of a curious explorer and let each step inform your decision-making process.
Overcome your biases and explore new paths and pursue your career options.
So, I hope all that was helpful.
In today's episode, I explored the topic of biases and their influence on our career choices. I discussed the four major biases that can hinder our progress and provided strategies to overcome them.
Remember biases are the cognitive shortcuts or unconscious patterns of thinking that shape our judgments and decision-making processes.
They act as mental filters, affecting how we perceive and interpret information. In the context of careers, biases can significantly impact our choices without us even realising it.
I discussed the four key biases:
The status quo bias, loss aversion bias, endowment effect, and sunk cost fallacy.
These biases can hold us back from exploring new opportunities, taking calculated risks, and making informed decisions.
To overcome these biases, I shared practical strategies.
First, it's crucial to reflect on our own biases and how they influence our career choices.
Seeking different perspectives is another important strategy. Surrounding ourselves with like-minded individuals can reinforce biases, so actively seeking out diverse opinions and experiences is vital.
Additionally, challenging assumptions and embracing experimentation is key. Rather than relying solely on assumptions or past experiences, you should engage in research and exploration.
This involves seeking information about different careers, attending workshops or conferences, and being open to new ideas.
Embracing small steps and calculated risks through experimentation allows us to gain real-world experiences and build confidence along the way.
So, remember to reflect on your own biases, and that it’s never too late to explore new paths and pursue your career options.
OK, I think that will do us for today,
I hope you found today’s show helpful.
Show Ending
Have a wonderful week and I will speak to you again in a couple of weeks time.
Bye for now.