Incentive compensation professionals work hard at developing incentive plans that drive employee motivation while also meeting their company’s strategic objectives. In the past, this has been achieved by using rules of thumb and stringent financial analysis.
Yet, hard work is not enough in today’s turbulent times.
Today, compensation professionals need to add a few more tools to their tool belt.
Specifically, they need to add a deeper understanding of behavioral science and communication strategy. A great incentive program can be a defining factor in an organization’s success but as the world evolves additional measures are needed to ensure that it is resonating with and being understood by the field. Adding behavioral science into the mix can significantly improve your program’s impact and the performance of your teams. Tie these principles together with award-winning communication and you have a home run.
Friction is defined by Merriam-Webster as “the force that resists relative motion between two bodies in contact” or “the clashing between two parties of opposed views.”
In our last article, we identified three types of organizational friction (the resistance points within a company that limit its performance). Those friction points were caused by oversight or shortcomings in Policy, Culture, and Environment. Each type of organizational friction has its own unique root causes and manifests itself differently within a company.
If we were robots, then when we are underperforming or not working, a simple diagnostic process would show us where the issue is. We would need to determine if it was a hardware or software issue, work through the bugs, and identify the component issues. It might be hard, but it is a structured process that a sound engineer can handle. And in the end, you know when you get it right because the issue is solved.
But we are not robots. We are human.
We are complex, context-driven, emotional, overstressed, and irrational. We often tell people what we think they want to hear, not what we really feel. We tend to avoid conflict and repress our feelings. Hell, we don’t even understand our feelings a lot of the time.
Would being able to understand the underlying reasons why you and others “do the things you do” be helpful to you in your job? Is there value in having the knowledge to be able to predict and understand people’s responses to your requests or changes? How about being able to anticipate how people will most likely respond in a given situation or environment? Would the ability to make more rational and sound decisions help you in moving your business forward?
people, that answer is “yes.”
Most of us
work in an environment that involves some level of involvement and interaction with
other people. Whether it be coworkers, bosses, employees, vendors, or customers
– at some point in your workday, there is likely a human involved.
How you interact with those humans can change how they respond.
We need to
be able to work effectively with those humans. If we can understand and
empathize with their underlying drives, decipher how they are interpreting our
words and actions, and anticipate how they will respond to what we do, our
interactions with them will be significantly improved.
Earlier this year I completed my PADI dive certification in San Diego, CA. Becoming dive certified has been a goal of mine for many years, one that had been consistently pushed off by either alternate priorities or due to time, financial, or geographic limitations.
Back in September, I partnered with Tim Houlihan to start “a monthly gathering of curious minds” which we called Behavioral Grooves. We thought it would be interesting to get like-minded people together to talk about applying behavioral science to life and work.
We had no idea if others would be interested in this…
We announced the meetup and were hoping to get at least a few of the friends that we had contacted to show up. We ended up with 24 people for that first session where we talked about habits – how they are formed and what people can do to improve them.
We were thrilled!
From there, it took off. We have over 180 members signed up to our meetup group and it is growing fast. We have had three monthly sessions as of early January 2018 and our fourth is lined up for two weeks from today. We have over 20 people who have made it to two or more of the sessions.
I guess we struck a nerve.
For our second session, we invited Professor James Heyman to speak and thought, hey, since he’s here, why don’t we interview him and make a podcast out of it. Thus, our Behavioral Grooves podcast was born. Tim and I both loved that so much that we decided that we didn’t want to wait for the next Behavioral Grooves session to record our next one – so we started to invite people and interview them – both live and over the internet.
To date, we have seven interviews recorded and three more in the works. These podcasts mirror the Behavioral Grooves sessions in that they are conversational in nature where we geek out over behavioral science and how we can apply behavioral science insights into our daily work and lives.
They have been a blast!
In reflecting on this, it appears to me that these two outlets provide us with a way of both learning and sharing. We want to be advocates for good, ethical use of behavioral science. We believe that there is much to learn and we can improve our work and lives by understanding and by applying these principles in a thoughtful and deliberate manner.
We also realized that we love the community that this is creating. A community of curious minds who are interested in science and the application of that science. A community of people that we can bounce ideas off of. A community of people that can push us to think about things from new perspectives.
This is ultimately what we have been building and hope that it grows and provides a place and outlet for others, as well as ourselves.
If you are ever in Minneapolis on the third Thursday of the month – please come and join us at our meetup (find out more info here) and if you can’t make that, please listen in to our podcasts (click here to find the latest).
Humans are interesting, they are quirky, they are irrational.
We think we know what is best for us. Often, we even assume that we KNOW what is best for us. e funny thing is – our behaviors do not always align with what’s best.
Dan Ariely introduced us to the fascinating world of irrational thought in his flagship book Predictably Irrational (one of our all time favorites) and I recently observed an interesting example of it at Denver International Airport.
For this article, however, I am going to take you on a journey deep into the mountains of northern Pakistan. Right now, you are probably wondering: “what could the Hindu Kush possibly have to do with behavioral science!?
Well, as we have been telling you, it’s everywhere!
So, bear with me and let’s have some fun while we talk about behavioral insights in action; observed from a recent adventure in northern Pakistan.
The Lantern Group is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.