Word Count: 1,833Estimated Read Time: 7 Min. The Problems Created by Knowledge Bias and Overconfidence Bias Most people think they know more than they actually do and, as a result, become overconfident.  How do we know that?  Because, when put … Continue reading →

Human beings have so many biases; the ones that we reluctantly admit to having and the unconscious ones that are hidden even from ourselves. In business, these biases are particularly problematic during hiring. It’s hard enough to hire in a tight labor market, but it is made even harder (and more expensive) if we hire the wrong people due to own biases. So it’s important to try to circumvent bias as much as possible. That means not allowing our decision-making to be swayed by personal aversions or pet peeves.

Beware of the Horn Effect Bias. Continue reading →

Ever noticed how the Sales Director, who is an avid golfer, happens to have four direct reports who are also above par golfers? Or how the head of HR, who is an environmentalist, just hired an Assistant Recruiter who worked in HR for Greenpeace? Coincidence? Hardly. In fact, it is actually pretty common. Perhaps you think “It’s perfectly normal to want to work with someone who shares the same passions or values as you. Nothing wrong with that.” You’re right and you’re wrong. You’re right that it is perfectly normal because this is the Halo Effect Bias in action. But you’re also wrong because there’s a lot wrong with that.

Here’s why. Continue reading →