Are you unhappy at work? Beware of the Sunk Cost Fallacy

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Are you unhappy at work? Be aware of the Sunk Cost FallacyAlexandra Humbel Coaching

If you are considering making a big decision, like changing jobs or embracing an entirely new industry or career, you better be aware of your decision-making process. What stands in the way of making educated choices and how can you debunk your own biases?

I had an aha moment when I discovered that what I had experienced myself, and observed in others for many years, had a name. Award-winning journalist David Mc Raney masterfully described the Sunk Cost Fallacy:

Misconception: You make rational decisions based on the future value of objects, investments, and experiences.

Truth: Your decisions are tainted by the emotional investments you accumulate, and the more you invest in something the harder it becomes to abandon it.

Psychologist Daniel Kahneman gave a fascinating insight on the topic. According to him and his colleague Amos Tversky, organisms that placed more urgency on avoiding threats than they did on maximizing opportunities were more likely to pass on their genes. Over time, the prospect of losses has become a more powerful motivator on your behaviour than the promise of gains.

According to Behavioral economist Dan Ariely, the “pain of paying” arises whenever you must give up anything you own.

How does the Sunk Cost Fallacy impact your career decisions?

You, and possibly your parents, have invested in your education, giving you opportunities to start a career in an area of your choice. Since then, you have made your way in the corporate world to better jobs, better pay, more empowering positions. Or you may have created your own company, maybe several, and led them to growth. You had your share of successes and failures. The sum of time and effort you have put into your career has created the professional you are now, at this moment of time.

Even though you are not happy with what you experience at work now, the idea of giving up what you have built, year after year, is just unbearable. David Mc Raney gives this example:

“Have you ever gone to see a movie only to realize within 15 minutes or so you are watching one of the worst films ever made, but you sat through it anyway? You didn’t want to waste the money, so you slid back in your chair and suffered.”

Your career is not fiction and your investment is worth more than a movie ticket. But still, why are you staying? Are you paying a tribute to all the pain, time, and effort which resulted in this not-so-fulfilling position where you are now? How do you bypass the Sunk Cost Fallacy?

Awareness starts with small things

In your everyday life, you make dozens of micro-decisions, from what to buy for dinner to how to respond (or stay silent) when you disagree in a meeting. Become an avid observer of your decision-making process. I recently bought a suitcase, however, I was not 100% sure that it was the cabin size I wanted. I came home and realized that it was the wrong size, which hardly surprised me. I had completed the purchase at the end of an afternoon of shopping which was all but enjoyable, for various reasons, including that I did not find the things I wanted to buy. So I wanted to go back home with at least one useful item to justify my unsuccessful shopping afternoon. Our decisions patterns are pretty much the same for every instance of life. Get curious about your own bias.

There is no loss, only transformation

This is not an easy one, rather a big chunk of wisdom that takes a lifetime to digest. How does it relate to your career? Wherever you go, everything you have learned and achieved stays with you. Think of the value you will bring to a new environment, a new team, and a new project. This travels with you and continues to expand as you challenge yourself.

Zoom in: Transferable skills

This is something I invite my clients to explore thoroughly at some point. You think all your skills are described in your CV, but this is only the tip of the iceberg. At this point in your life, you deserve more than doing the things you know you can do. You want to focus on what you shine at, on the things that come to you so naturally and willingly, that you are in a flow and deliver your best work with the greatest impact. For more on this, read my post here.

Zoom out: The big picture

Questions about your next career move can become painfully obsessive, for a good reason. There is much at stake and you want to make educated choices, especially if you have to step beyond your comfort zone and take risks. At that point, I invite my clients to put aside, for a moment the career topic. This can sound counterintuitive, as this is the very reason why they hired me. It takes one session to understand that your real agenda is the life you want, including your health, how much time do you need for your family, for your personal wellbeing, how much money you need to sustain this life, what needs to change to put your project in motion, among others. Read more about the big picture in this article.

 

 

Sources
Mc Raney, D. “You Are Not So Smart” Book Depositary Link
Kahneman, D. “Thinking, Fast And Slow Book Depositary Link
Ariely, D. “Predictably Irrational” Book Depositary Link

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Career Transitioning: 10 Things I Wish I’d Known Earlier (Part 2)

Career Transition: 10 Things I Wish I'd Known Earlier - By Alexandra Humbel CoachingAlexandra Humbel Coaching

This is Part II of my previous article about what I have learned, having experienced three career transitions and helped numerous professionals play a successful second act of life. I hope you enjoy the read. 

6. The only approval you need is yours

Beautifully expressed by Amanda Gorman, the need for approval is one of the most common hurdles that may stop you in your momentum. The minute you share bold, ambitious dreams for yourself, you will see a number of red flags raised around you. Well-intentioned, loving people in your life will instantly reject the idea that you may get lost in ambitious and risky projects. They want you safe, and the status quo is largely safer than… anything else. Red flags will come from all directions. Colleagues, friends, and family members may sense an unavowable pang of jealousy at your renewed aliveness. Don’t take it personally, don’t be impressed. 

7. Big dreams don’t make you a dreamer

The biggest red flag, though, is in yourself. It is cultural. People with dreams are dreamers. Dreamers are no achievers. This idea was drilled in your subconscious at an early stage, and you will find it, sure enough, on your way to a new career. Don’t buy the simplification. Rather engage in honest exploration: What is really important to you? What does your future, the one you crave, look like, taste like? What is your own definition of success, from now on? Does it encompass every aspect of your life? Does it bring value to you and the people around you? What would be the markers of your future success? The more aware you are of what you really want and why, the most enticing your vision is, the better. As the genius dream architect Walt Disney said: “If you can dream it, you can do it”.

8. Luck is when preparation meets opportunity

How many times this week did you hear yourself say “She is so lucky, to get this job” or, about yourself “I was lucky to meet this person”. By default, we tend to attribute good things happening unexpectedly to luck, whatever this word means. Abundant scientific literature shows that lucky people have their own way to attract luck, in doing two things: They put all the chances on their side, and they open their senses 360° to allow happy coincidence to happen. If you want to share a fantastic business idea with a very searched after person, you may want to make sure this idea has value for the person, refine and rehearse your pitch until it is irresistible, get all the intel you can about where this person may be hanging out, and keep in mind that if your idea is truly great, it will find its way to the real world. With or without this person. 

9. It is so cool to go back to school

A current cause of stress for career transitioners is the necessity to get extra training. Will you be able to learn as fast as you used to? Is your brain capable of memorizing new knowledge? How awkward will it feel to sit on a school bench at your age? What will your ex-colleagues think? How will you cope with homework, supervision, and exams?  Most likely, all of these fears will materialize. Yes, you will feel intellectually rusted. Yes, you will have to deploy your best efforts to catch up. Yes, it will feel awkward sometimes. Yes, some well-intentioned peer will ask what the hell do you expect, getting back to school at your age. And yes, homework sucks. But the reward is invaluable. Your decision to be a student again is a gift you offer to yourself and an investment in your future. The process is fun too. Learning has its own way to pump up your spirit and upgrade your self-image. 

10. You will never look back

Maybe the most important thing I which I had known is that there is no way back. More accurately, there is no desire to go back to square one. You are a creature of movement, like all living creatures in this world. The journey towards a fulfilling second act of life is bumpy and interesting. We talked about the inner reward of learning, and learning comes in many different ways. Questioning the status quo makes you more alive. Taking bold moves towards work and life that you love triggers renewed energy. And keep in mind that you might well become a source of inspiration for other people’s own journey into transition.

If you missed part 1 of this article, you can read it here.

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Career Transitioning: 10 Things I Wish I’d Known Earlier (Part 1)

Career Transitioning - Things I wish I'd known earlier - by Alexandra HumbelAlexandra Humbel

My mentor suggested that I write a post about the things I wish I had known earlier about career transition. I liked the idea and, based on my personal journey as well as my experience as a coach, I started with a half dozen points aimed at helping professionals get on the fast lane. I ended up with twice as many points, and the kind of long article I, myself, have a hard time digesting. Hence the decision to stick to 10 essential points, dispatched in 2 posts. This is Part I, I hope you enjoy the read. Part II is available here.

10 Things I Wish I Had Known Earlier About Career Transitioning.

1. You are not alone

Studies show that an increasing number of experienced professionals are undertaking a career change, and even more are considering it. Three-fifths of UK workers (60%) intend to make changes to their careers as a result of the Covid outbreak, an increase of seven percentage points since July 2020 (53%).*

So why does it feel weird and lonely? It is because nothing prepared you to handle one or several career changes in your life. Society tends to assign you a role, tied to a life cycle: In your junior years, you prove your competence. As you are getting experienced, you excel in your field. And then, what? You retire. While there is nothing wrong with linear career paths, it does not work for everyone. Probably not for you, if you are reading these lines. 

2. Your skills are transferable – All of them

My clients who crave a new career are taken aback by the thought that their expertise might be lost when they change jobs. It is natural to take pride in those skills you have mastered over time. The good news is, you take everything with you on the journey.  Those skills will manifest in creative ways, coming in handy to serve your goals while you are expanding in your new project. Interestingly, ancient or dormant skills will show up and prove valuable to handle new situations. Your brain creates new circuits while tapping into resources you did not remember you had. And this is particularly refreshing. 

 

3. It is OK to be lost in transition

Describing career transitions as uncomfortable is an understatement. More accurately: Everything which made you feel grounded in social status is gone. Welcome to unchartered territories, where nobody is waiting for you with your name on a sign. No driver, no limousine. It requires courage to leave the familiar in order to become a new version of yourself. Uncomfortable, scared, and excited all together, highs and lows are in order. But, as Maya Angelou said: “We delight in the beauty of the butterfly but rarely admit the changes it has gone through to achieve that beauty.” The butterfly is you.

4. Money and time are no excuses

“I will do a job I really love when I have enough time, or money” (or both). 

Does that sound familiar? Of course, these two factors are critical components of a decision, and critical metrics to monitor all along the way. Controlling your time and financial resources through a career transition will be essential to succeed. Be aware that the conservative, risk-averse part of you will always show up with these massive excuses that are the lack of (or the fear of lack of) time and or money. Or both. It is your call to let these fears be the master of you.

5. Nature is in constant change and so are you

“Nothing is absolute, everything changes, everything moves, everything evolves, everything flies and goes away”.

These lines written by the fascinating artist Frida Kahlo can be interpreted as words of regret and melancholy. Or, from another perspective, as the constant evolution of all things that allow rebirth, re-invention, possibilities, relief, reboot, rejuvenation, and creation. When looking back at your career, you may take pride in what you have achieved, and, simultaneously, realize that this pattern is no longer fulfilling you. You can cherish your past achievements and look forward to what you are going to do next. This is not a lack of consistency in your choices. It is about the inherent nature of all of us, to thrive in movement or shrink in stagnation.

 

Continue reading part 2 of this post

 

*Aviva “How do we live” Report, 2021

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3 Common Reasons Why Your Career Transitioning Isn’t Working (And How To Fix It)

3 Common Reasons Why Your Career Transitioning Isn't WorkingAlexandra Humbel

Congratulations! You have decided to take charge of your future. You have what it takes to engage and thrive in a new professional development. So why are you feeling stuck and discouraged? Why is your project not coming to fruition? What happened to your once-unstoppable motivation? In this article, I discuss three common reasons why your career transition may not go as planned and what you can do to get back on track.

1. You lack flexibility

We never give enough praise to the virtue of having a plan and, well, actually sticking to it. I am a big fan of planning, don’t get me wrong. I just know that real life is what happens while we obsess over completing our plans. Especially in a period of career transition, several things can happen. You will meet resistance. Ask yourself, is this a hurdle you can bypass, or is it a major no-go sign? If so, what does it tell you?

Life is what happens while we are making plans. Did something major happen in your life? Maybe your partner found a unicorn job in a different country. Maybe you are disappointed by a lead that looked promising but fell through. Maybe a baby is born. You may need surgery that will immobilise you for several weeks. Or you receive an unexpected proposition to partner in a startup…

Whatever the circumstances, the way to negotiate your next step is to go with the flow without losing sight of your ultimate goals. One of the first things I do with my clients is to mine their values. I help them shine a light on what is most important to them and to envision the life they want, a fulfilling life that includes a career they love.

Once you get clear on your ultimate vision, you are more prone to accept sudden changes and turn them into opportunities, which may come from unexpected sources. When you stand in your values, you increase your capacity to adapt, make the best of each situation, and evaluate offers with clarity and purpose. In following your WHY, you become healthily unattached to the HOW. 

Do you feel like you are currently lacking clarity and direction? Then download my free Compass Coordinates Workbook. It’s a great starting point to help you get back on track.

2. You are lonely

It is not easy to acknowledge when we feel lonely. Especially if you are blessed with a partner, a family, and a bunch of good friends. You have made the bold decision to change careers, you have shared it with the people who are important to you, and received their support. Nevertheless, your journey to change your career can be a lonely one. The daily tête-à-tête with your computer screen is all but romantic. Motivation is a resource that has a limited lifespan. Discipline works until it fades and gives in to anxiety…

It is time, dear brave career transitioner, to change the dynamic and get help from people who understand what it is you are doing. A vast range of free or inexpensive options are available to you: Join peer groups locally (oh the joy of meeting in person again!) and online. Forums, industry experts, discussions, entrepreneur associations, alumni, mastermind, or other peer support groups. Are you enrolled in a training program?  Connect with your co-students and create a support group with them.

The core message here is, find your tribe and engage! The positive effects are many:

  • You gain perspective and advice from peers
  • You become an educated resource for others who value your expertise
  • You will fuel your self-confidence
  • You enlarge your network through meaningful exchanges
  • You get back to your project with fresh eyes and renewed energy

If you are on LinkedIn or Facebook, feel free to connect with me. I would love to follow your journey into a career you love!

3. You are in a pit

You started out like a champion, tackling the first steps of your transition like the kick-ass professional you are. Then things started to slow down, hurdles began to accumulate and your energy started lacking. Self-doubt and guilt are center-stage, draining your emotions and clouding your skies. Positive thinking doesn’t help when the fear of failure is running the show.

The first truth to keep in mind: A career transition always takes more time than expected. Resistance is what you meet most, starting with your own human inclination to cling to the status quo. A change of perspective is needed.

The prescription? Radical honesty and self-compassion.

Radical honesty means a 360°, non-judgemental assessment of your situation at this moment. Including revisiting your objectives to see if you are still aligned with everything you decided at some point in the past. Acknowledge your achievements. You have come a long way, so give yourself credit.

Now assess your current situation. What is stopping you? Are you in a perspective where you believe you have only black and white choices or no choice at all? One of my clients tortured herself to decide if she would quit her corporate job in order to find a more fulfilling career, or stay and stagnate. She ended up keeping her job (now fueled with renewed energy, knowing it is temporary) and pursued not one, but two professional opportunities, corporate and free-lance. As she signed her first paying clients, fresh and exciting perspectives started to show up. Self-compassion is about giving yourself a break. At this point in your life, you don’t have to prove that you are an overachiever. Try to be a better achiever instead, the kind of achiever who values their physical and emotional health at the same level as their professional success?

What do you think is holding you back from transitioning into a fulfilling second act of life? I have made it my mission to help talented executives and high-achievers transition into a more meaningful, fulfilling career. If you would like to have a chat about your plans, book a complimentary discovery coversation with me.

It’s time to break through any obstacles and make it happen!

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4 Common Misconceptions About Career Transitioning

COMMON MISCONCEPTIONS ABOUT CAREER TRANSITIONINGAlexandra Humbel

Have you been repeatedly inspired by the stories of friends, colleagues, people on social or in the media, who changed careers in their fifties and started something vastly different? Have you wondered, even for a minute, how exciting it would be to follow their example? Then this article is for you. In all honesty, nobody ever said it was easy. It never is. But the most difficult thing may well be the first step: Overcoming your pre-conceived ideas about what it takes to follow your inner North Star, and start a meaningful second act of life.

Here are four common misconceptions about career transitioning that I often hear from clients before we start working together.

1. I am too old

Misconceptions about age are extremely interesting because ageing is a taboo. It becomes even hairier when you realize that you are now officially part of the “senior” or “older” workforce. At this point, the only visible perspective for your future is retirement. If this is not what you want, and if you consider changing career instead, I can hear you asking: “How old shall I be when I succeed in my new job?” the short answer is “The same as if you dwell in the status quo”.  We age anyway, this is a fact of life. The even shorter answer is: You have choices. You always do. Starting a new career that makes your heart sing every morning might come with a different lifestyle, where you divide your time between work and leisure. According to the latest Aegon research on retirement, older professionals do not want the traditional ‘cliff edge’ retirement – they want an easier transition towards a work-life balance which better suits their needs.

2. I will need a lot of training

This is also a misconception, and here is why. Once you are crystal clear about what you want to do (which might require some time and help), it becomes a matter of execution. If you need to add competence to your skillset, you will proceed, promptly. One of my clients transitioned from CEO in the media industry to skipper, cruising clients in the Mediterranean in a luxury sailing boat. While he had been a savvy sailor in the past, he needed to pass a professional skipper degree. It took him six months of commitment and he graduated with honors. Motivation is at the core of the decision to get training. As Brave Start observed in a recent survey,

“The drive to learn is undiminished but comes with the self-awareness and perspective that comes with age” ¹

Are you struggling to find clarity? A great place to start is by downloading my free Compass Coordinates Workbook, which will help you cut out the noise and get a clear direction for where you need to go next.

3. I will lose my status

Yes, you will. The misconception is about what you make of it, and what you get in lieu of your status-quo. When was the last time you re-visited your conception of success? What is really important to you? What do you want other people to see in you? To say about you? What is the impact you want to have? Do you want to use your sterling experience in a meaningful way? Is there an entrepreneurial dream that is waiting to be brought to life? There is no right or wrong answers to these questions, but it may be time to re-align your actions with your values. Business cards are old-fashioned and unsustainable anyway. Don’t sweat the small stuff. Once you are on your way to your second act, a new status will emerge, together with a new version of yourself.

4. I will be financially vulnerable

If you ask yourself questions about your finances, you are point on. Money is key in the equation of a potential career change, and you want to be clear about the consequences. To start with, you want to have a 360° view to make an educated decision. This exploration is essential, as we tend, by default, to cling to standards that are no longer aligned with what we really want. Make a thorough assessment of your needs, and those of your family. You may be ready to downsize your home, move, or simplify your life. Doing a job you love has its own pay-offs, that may make you happily give up the toys you enjoyed at some point. Or, on the contrary, financial success is centrally important to you. Different moments of your life involve different priorities. An evaluation of your assets and pension fund is necessary to determine what you have and what you need to earn, in order to live the life you want.

Have you created false beliefs that are preventing you from living your dream life? What stories have you been telling yourself that are holding you back from taking a leap and transitioning into the next stage of your life? If you are looking for someone to guide you, who can provide you with an objective view and the tools that will allow you to transition gracefully into the second stage of your life, I would love to have a chat with you. Click here to schedule your free discovery conversation today.

 

¹ Unlocking the Value of an ageing working force, 2021

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