HR Concept for the Day- Optimism Bias

Optimism bias (also known as unrealistic or comparative optimism) is a cognitive bias that causes a person to believe that they are at a lesser risk of experiencing a negative event compared to others. Optimism bias is quite common and transcends gender, race, nationality and age.

Four factors exist that causes a person to be optimistically biased: their desired end state, their cognitive mechanisms, the information they have about themselves versus others, and overall mood. The optimism bias is seen in a number of situations. For example: people believing that they are less at risk of being a crime victim, smokers believing that they are less likely to contract lung cancer or disease than others smokers, first time bungee jumpers believing that they are less at risk of an injury than other jumpers, or traders who are think they are less exposed to losses in the markets.

Although the optimism bias occurs for both positive events, such as believing oneself to be more financially successful than others, and negative events, such as being less likely to have a drinking problems, there is more research and evidence suggesting that the bias is stronger for negative events. Different consequences result from these two types of events: positive events often lead to feelings of well being and self-esteem, while negative events lead to consequences is involving more risk, such as engaging risky behaviors and not taking precautionary measures for safety.

Have a great day😊