Yesterday I learned about confirmation bias. Now I see it everywhere.

Welcome to another edition of The Company Man! Today we're talking about cognitive biases.

Cognitive biases are mental shortcuts that our brains use to make decisions and process information. They are formed through our experiences and the messages we receive from the media and society and can have a significant impact on our behavior, even if we don't intend to act on them.

While they can be helpful in some situations, they can also lead us astray, especially when it comes to our careers.

Here are the four most common cognitive biases that can affect our careers:

1. Confirmation bias

We all have a tendency to seek out information that confirms our preexisting beliefs and ignore information that challenges them. In the workplace, this can lead us to make decisions based on incomplete or biased information.

Let's say you're considering applying for a new job, but you've heard that the company has a terrible reputation for treating its employees poorly. If you only seek out information that confirms this belief (such as negative reviews online), you might decide not to apply for the job, even though it could be a great opportunity. On the other hand, if you also consider information that challenges your belief (such as positive reviews or first-hand accounts from people who have worked there), you might make a more informed decision.

2. Anchoring bias

Anchoring bias is the tendency to rely too heavily on the first piece of information we receive when making a decision. This can be especially problematic when we often have to make quick decisions based on limited information.

For example, you're negotiating your salary for a new job. If the employer makes the first offer, you might anchor your expectations to that number, even if it's lower than you're worth. Alternatively, if you make the first offer, you might anchor the employer's expectations to that number, even if it's higher than they're willing to pay. To avoid anchoring bias, it's important to consider a range of information and not get too attached to any one number or data point.

3. Availability bias

Availability bias is the tendency to make decisions based on information that is readily available to us, rather than seeking out a more complete picture. In the workplace, this can lead us to make decisions based on incomplete or outdated information, or to rely too heavily on our own experiences and biases.

A good example would be if you're trying to decide on a marketing strategy for a new product. If you only consider the strategies that have worked for you in the past, you might overlook new and potentially more effective options. To avoid availability bias, it's important to consider a wide range of information and seek out diverse perspectives.

4. Overconfidence bias

Overconfidence bias is the tendency to overestimate our abilities and underestimate the likelihood of negative events occurring. In the workplace, this can lead us to take on more than we can handle, make poor decisions, or underestimate the risks of a given situation.

Say you're applying for a promotion at work. If you're overconfident in your abilities, you might not prepare as thoroughly as you should or you may underestimate the competition. On the other hand, if you're aware of your limitations and the potential risks, you might be more likely to succeed.

As with many things, self awareness is often the first step to overcoming your biases. Next time you're making a career decision, be sure to keep these in mind and try to compensate for them. And remember, it's okay to be a little biased – after all, we're only human. Just try not to let it get in the way of your success.

I hope you found this useful - if you have a great tip on managing biases or instances where you've fallen prey to them, I'd love to hear it. You can reply to this email to reach me directly.

Thank you for reading and have a great week ahead!

Yours curiously
Anupam

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