Negative News Can Be Helpful Too

Recently, I was conducting a business coaching seminar for hopeful entrepreneurs and we were on the topic "Selective Hiring" when it comes to prospective workers.

The objective for the participants is to master competent skills and healthy mindsets when hiring the right people for your organization.

Most applicants in the role-play had excellent work aptitudes and impressive career portfolios.

Nonetheless, during the role-play, I was shocked that many participants would easily hire such applicants without thorough questioning and assessment of their real-life problem-solving capabilities and attitudes.

When asked why would they easily hire these "remarkable" applicants, the participants shared that the applicants' impressive aptitudes and career portfolios were "too good to reject".

Such hiring phenomena often present long-term, high-risk business losses for companies due to the prevalence of the Ostrich Effect in decision-making processes.

What is the Ostrich Effect?

The Ostrich Effect is a cognitive bias where people avoid negative information or situations, often out of fear or discomfort.

This term is derived from the myth that ostriches bury their heads in the sand when faced with danger, believing that if they can’t see the problem, it doesn’t exist.

In reality, avoiding challenges doesn’t make them go away; it simply delays the inevitable while allowing problems to escalate.

In personal, business, and career contexts, this avoidance can significantly hinder growth and progress.

When we fail to address critical issues—whether it’s about our personal development, our business health, or our career trajectory—we miss valuable opportunities to learn, adapt, and succeed.

The Ostrich Effect in Personal Growth

Many of us engage in behaviours that avoid personal discomfort.

Whether it’s delaying health check-ups, procrastinating on setting boundaries, or avoiding confronting personal flaws, the Ostrich Effect can trap us in a cycle of stagnation.

Example of Personal Avoidance:

• Ignoring the need for self-care despite signs of burnout.

• Procrastinating on starting that fitness routine because it feels overwhelming.

Overcoming this requires us to embrace discomfort as a necessary ingredient for growth.

By confronting our issues head-on—be it by adopting small, consistent self-improvements or seeking external help like therapy or mentorship—we can make strides in areas we once felt stuck.

The Ostrich Effect in Business

In business, avoidance can be even more costly.

Entrepreneurs and leaders sometimes avoid examining financial reports during tough periods, fail to pivot strategies when market conditions change or overlook customer feedback.

This “head-in-the-sand” behaviour can be detrimental to long-term success.

Business Scenarios Impacted by the Ostrich Effect:

• A small business owner who avoids reviewing financial losses, hoping they will resolve themselves.

• A team leader who hesitates to address performance issues within the team, fearing conflict.

Instead of avoiding these difficult realities, successful business leaders face them directly.

They consistently review performance metrics, seek feedback, and make data-driven decisions.

For instance, by conducting regular financial audits and listening to employee and customer feedback, they prevent crises and adapt quickly to market shifts.

The Ostrich Effect in Career Growth

When it comes to our careers, the Ostrich Effect often manifests in avoidance of feedback, lack of goal-setting, or fear of stepping outside of our comfort zones.

Many professionals avoid asking for feedback from their managers, shy away from discussing career growth opportunities, or procrastinate on pursuing new skills.

Career Avoidance Examples:

• Avoiding a career conversation with your manager due to fear of rejection or criticism.

• Ignoring personal development plans or certification programs that could advance your career because of the time and effort required.

The antidote to this avoidance is proactive engagement with your career development.

Actively seek feedback, even when it’s uncomfortable, and regularly assess your skills, experiences, and career path.

This way, you can stay agile, make informed decisions, and position yourself for new opportunities.

Back to my coaching seminar with my participants who are hopeful entrepreneurs.

During the seminar, after much discussion of the Ostrich effect, the participants realised the importance of asking and discovering more about the applicants' failures and weaknesses when it comes to work and leadership capabilities.

There is no perfect employee, only excellent workers who have the right attitude to learn from mistakes and grow their competencies through resilience and humility.

When we can recognize and accurately assess the "negative" sides of prospective employees, we are more able to filter and employ the right people to grow the organization exponentially.

The Ostrich Effect keeps us in the realm of “what could have been” rather than “what could be.”

Avoidance is a comfort zone trap, and true growth happens when we step outside that zone, face the uncomfortable truths, and take action.

In personal, business, and career realms, progress comes not from avoiding problems but from engaging with them directly.

💬 What challenges have you been avoiding, and how can you take the first step to confront them?

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