Your friend comes to you with a dilemma....
She’s considering two different sales roles. One is a commission based role, with high, lucrative potential and the other is a guaranteed salaried position. After crunching the numbers carefully (hey that’s what you do) it’s clear that the commission-based option is the winner, with the greatest chance of making your friend some serious money.
What happens next perplexes you.
Your friend says that she’s going to take the guaranteed salary role, over what she calls the ‘up in the air’ commission based position. She’s never really shown signs of being risk adverse before, so what’s happened?
What is the Ambiguity Effect?
In short, your friend has shown our very real, human tendency to try and mitigate risk by avoiding situations where we can’t predict the outcome. It’s why people choose bonds over stocks, or a fixed mortgage over a variable rate. It’s called the ambiguity effect and knowing about it can change how we structure our resumes and how we hire.
Candidates: The Ambiguity Effect and Your Resume
Since we know that people avoid choices where an outcome is not predictable, a noticeable gap in your resume is the proverbial red flag. This can particularly sink your job search ship if your competition, in the form of other hungry candidates, have resumes that are complete. Consider the following:
Employers: The Ambiguity Effect and Hiring
As a psychological bias, the ambiguity effect can create challenges in the hiring process. Consider the following:
We are naturally risk adverse. We don’t like ambiguity. What we do like is to feel that we have the information we need to predict the outcome of a situation. For candidates, this means including content on your resume rather than leaving a gap, so that employers don’t see it as an inconsistency. For employers, it means not dismissing a candidate out of hand because we perceive that something is missing on their resume. Ambiguity can sound your internal alarms but by controlling your natural bias against it, you can ensure that you hire the best candidates for your roles.
Want to read more about the ambiguity effect? Check out what Wikipedia has to say about it.
Your Next Step
No one should walk the job search or hiring road alone. At Clarity Recruitment we help others realize their success through a process that marries proprietary technology with unwavering commitment. Contact us today to take control of your career, or to partner with us to hire well.
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