The Paradox of Choice: Why More is Less

Written by Barry Schwartz

Why is it that with more choices in products and lifestyle than at any point in history the rate of clinical depression has triple over the past two generations?

In The Paradox of Choice, Barry Schwartz explores how the seemingly endless array of options is actually creating misery as people obsess over actually making choices – and then obsessing with regret over the choices not made or how others choices are superior to their own. While providing some compelling research to make his case, there also emerge some useful principles for application in the area of incentive design. Following are four that I found to be particularly interesting.

1) Schwartz explores the concept of adaptation, which is to say that the initial excitement of an experience or product wears off quickly and then provides little or no joy. The implication for us is that within incentive design we need to make regular changes to programming in such a way that engagement is renewed. Whether through the targeted behavior(s), "games" to draw attention to that behavior, or rewards associated, we need to continually work to reinvent.



2) Networked relationships are key to happiness. Schwartz makes this case in the sense that without relationships we become isolated and more prone to obsess on decisions and comparing ourselves to others. Applying to workplace relevance, he makes the case that when we are in a good mood, we think better and that mildly depressed people miss 1.5 times more work than others, seriously depressed miss 5 times. Leveraging the capabilities of social networking applications, we can apply this to engagement strategy in the workplace. LoyalNation offers just such a product set in the Corporate Connect product set.



3) Gratitude expression makes people happier and healthier. While Schwartz discusses this concept as means to be thankful for what we have in avoiding continuous fixation on what’s "better" than our current status or possessions, we know that appreciation is one of the foundations of great teams. By building in regularly expressions of appreciation from managers to employees and peer to peer, we create greater retention and happiness…and as previously referenced, happy people think better….driving innovation and greater service to build our businesses.



4) Nobel Prize winning psychologist Daniel Kahneman’s study found that what we remember about past experiences is primarily determined by how they felt at peak (best or worst) and how they ended. There’s a fairly graphic example to prove this point that involves the ending "touch" in a sample of colonoscopies. I’ll take his word for it, and just say that when designing incentive and engagement planning we can trust that even if the job is unpleasant, with the right ending note of thanks, celebration of appreciation, or gift we go a long way to creating a positive, energized workplace.



The Paradox of Choice was named a Top Ten Book of the Year by Business Week. It merits that designation and has something to offer us in consideration of product positioning, incentive design, and personal fulfillment.



David Schroeder is the President of LoyalNation.com