Tuesday, September 17, 2013

#473 for free

In the wonderful book Predictably Irrational, Dan Ariely lays out the argument that social norms and market norms are two different things and it is best not to mix them.  Translated, this means that people are happy to do things, without pay, when they are doing so for social reasons (a cause, a relationship, to be nice community members), but they are not happy to do the same things when they are paid a token wage to do them.  

His book gives lots of examples, both of the social experiments they ran, but also from real life.  A mother-in-law would be insulted if you offered to pay for the wonderful dinner at her home; a friend does not need payment to help you move a couch, and lawyers are more willing to work pro bono for a cause than to be paid a fraction of their regular billing rate.

I see market and social norms collide on our campus when it comes to co-curricular activities.  When I was a staff member in student activities, we did not pay anyone for any type of involvement.  I had students volunteer for me who put in hours and hours of work for the lessons it taught them and the enjoyment of the act.  Today, there is pressure to pay student leaders, tour guides, student ambassadors and just about everyone else that is involved on campus.  The argument is that they "need" the money and don't have time to work and be involved.  Personally, I do not believe it.

Time magazine ran a cover story last week advocating that Division 1 athletes be paid "at least the cost of full attendance."  As if that would be enough.  First it would be a few hundred dollars beyond their full scholarships, then a few thousand, and then the social norms would be broken and collegiate stars would want hundreds of thousands of dollars that they "deserve."

There is something to the notion of doing things for love.  Ariely argues that "when a social norm collides with a market norm, the social norm goes away for a long time.  In other words, social relationships are not easy to reestablish."  Think carefully before you cross that line and offer token payments.  Volunteers, boosters, members and fans are willing to do heroic things for you -- for free.  Show them appreciation, recognition and provide the tools for it to be a valuable experience, but keep your cash in your pocket.  Once you open your wallet, it will never be enough.



-- beth triplett
leadershipdots.blogspot.com
@leadershipdots
leadershipdots@gmail.com

Predictably Irrational by Dan Ariely, 2009
Time Magazine, September 16, 2013





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