Tag Archives: Bonus

A Can’t-Miss Strategy for Making the MLB Playoffs

The baseball season is long — the regular season lasts more than half of the year. And that’s just the regular season. It doesn’t even include the preseason or postseason. As the season spans six months, one would think that it might be hard for some players to keep their focus during the middle of the summer.

In fact, this past Sunday while watching a Blue Jays game, I saw a graphic that depicted the wins/losses of the teams in the division during the last game of the series for the 2013 season. The graphic showed how the other teams were far more successful than the Blue Jays when it came to the last game in a series. As a result, it got me thinking about how to better incentivize players (maybe managers, too?)

My idea: incentivize winning series.

Before I get into the details, I want to preempt the argument that baseball players get paid too much. Grant Brisbee of SB Nation had an all-around great response:

The problem with these comparisons is that baseball isn’t the real world. There is no comparison for baseball. Try to invent one without devolving into ridiculousness. Okay, so there are 30 Walmarts in America. And there are laws that protect Walmart’s monopoly, which means there aren’t any Targets. But those 30 Walmarts can be run only by people with Ph.D.’s who graduate in the top one percent of their class from the top 10 universities. And the Walmarts are in competition only with each other, which means …

… a ridiculous scenario all around, of course. Baseball players shouldn’t be compared to the average American worker. They’re specialized, elite talents in an entertainment industry that’s sitting on a money spigot. And I feel like I should mention this at least once: If the players didn’t get the money, it would just go to the owners. You can argue that owners should get a larger share because they take the investment risk. I’m not sure I’d agree, but that’s at least a consistent argument. Saying that players should make less because it offends your sensibilities isn’t quite as compelling.

Now that we’ve gotten that out of the way, we can focus on how to incentivize players to win series. Well, just before that, let me talk a little bit about why I chose series as a unit of measurement. As there are 162 games in a season, it seemed like incentivizing a player to win every game might superfluous, as players always want to win the game. I chose a series because there are a little more than 60 of them and it seemed like a good intermediate goal (or project milestone, if you want to put it in the language of project management) between winning every game and making it to the playoffs.

Most series are 3 games long, so we can think of winning the series as winning 2 out of the 3 games. If the team wins two out of the three games, then the players all get a bonus. To guard against them mailing it in during the last game, there could be another bonus if they sweep the series and win all 3 games. What happens when the team loses the first 2 games of the series — what do you incentivize then? Well, you’d incentivize not being swept. That is, if the team loses the first 2 games, the players get a bonus if they win the 3rd game and avoid being swept.

For those series that are 4 games long, the same incentivizes for winning/sweeping a series still apply, but we’d add another one — tying a series. That is, if a team is down 2 games to 1 in the series, the players would get a bonus if the won the last game to tie the series 2-2.

Now, my first thought would be to use money as the incentive to win these games, but with the salaries that players have, one may wonder whether there could be enough money offered to actually make the incentives work. The more I thought about it, though, the more I thought that even players with massive salaries could be motivated by money.

Let’s use last year’s MLB salary figures as a basis. Fangraphs had an article that detailed the average MLB salary last season ($3.4 million) and the median ($1.1 million). The median salary is probably a better representation, so let’s use it. The median salary equates to approximately $20,000/week, assuming that players get paid every week of the calendar year. Let’s also assume that there are 60 series in a season. That means, there will be approximately 60 times to offer players this bonus incentive. There are also 25 players that are on the active roster. As a result, we’d have to decide whether we wanted to reward all players or just the players that played in the game.

With 25 players on the active roster, the calculation for offering a bonus of $1000 makes it quite the expense, but not as much as you might think. 25 players getting a bonus of $1000 across 60 games equates to an extra 1.5 million that needs to be budgeted. Given that this is approximately the median salary of an MLB player, one would think that teams could afford this. It’s also important to note that these calculations didn’t include the possibility that teams would win the series and sweep the series. In those cases, players could get a bonus for winning the second game of a three game series and then get another bonus if they win the third game of the three game series. A quick look at the total number of sweeps last year tells us that the average number of sweeps was 7. So, we can add another $175,000, which brings the total expense to $1.675 million. While certainly not a small amount of money, in the context of how much teams spend, it seems like it might be worth it to try and win a few extra games.

Let’s look at the Baltimore Orioles last season as an example. They finished 85-77, 6.5 games out of making the playoffs. Meaning, if they were to win 7 of the games that they lost, they would have made the playoffs. Looking at their streak data from last season, they were swept 5 times. In addition, they were stopped from sweeping a team 8 times. Together, that’s 13 games. If the Orioles could have won half of those (6.5, so let’s round it to 7), they would have made the playoffs.

Put differently, if they would have employed this strategy and it was successful at least 50% of the time just in the series where they almost swept a team and were swept, they would have made the playoffs.

Best Posts of Jeremiah Stanghini’s Blog in 2013

Last year when I did a best posts series, I ended up doing three different posts. This year, since all of the posts that appear on this website originated on this website, I wouldn’t need to include any posts about Genuine Thriving. My first inclination was to do a best of 2013 and a best of all-time, but after looking at the statistics, the best of 2013 and the best of all-time are essentially — identical. As a result, I decided to just do the one post of the best posts of 2013.

Before revealing the top 6 posts along with an excerpt, there is one thing to keep in mind. On the old site, there used to be only an excerpt shown with the post. So, if someone wanted to read the whole post, they had to click the link (this was just how the theme worked). On this site, however, I specifically chose a theme where folks wouldn’t have to click a link to view the whole post (only to share or comment because those links are on the post’s page). As a result, the statistics for the most popular posts are sure to be skewed because people may have read a certain post more than another, but without them clicking the link for the post, there’s no way (that I know of) for me to know. On top of that, the theme I’ve chosen here allows the viewer to scroll (all the way to the first post!) What does that mean? When you’re on the homepage, you can continue to scroll down and more posts will load… all the way ’til you get to the first post. And in looking at the statistics of the top posts, it’s clear that “scrolling down” is far and away the most popular “post” on this site (this was true last year, too). With that in mind, here they are with an excerpt for each:

The Official Final Jeopardy Spelling Rules [UPDATED]

If you know me, you know that I’m really good at finding things on the Internet. After doing a couple of cursory google searches (Final Jeopardy RulesOfficial Final Jeopardy RulesOfficial Jeopardy Rules), I was surprised that I couldn’t find them. Sometimes, the site that hosts a document like this doesn’t do a good job of using keywords. So, I thought I’d poke around the official Jeopardy site — nothing.

After some more derivations of “Rules of Jeopardy,” I was beginning to think that maybe the rules aren’t online. I thought that maybe the contestants were handed a paper copy that they signed before going on the show and that document wasn’t online. Having never been a contestant on Jeopardy (though I’d like to be some time!) I couldn’t confirm whether this was true. However, given that it’s a game show, I’m sure they signed something before going on the show. Regardless, I didn’t have access to that document.

In The End, Everything Will Be OK – If It’s Not OK, It’s Not Yet The End

It’s no secret that I like quotes. Since converting my Facebook profile to a Facebook page, I’ve gotten into the habit of sharing a “quote of the day.” If my calculations are correct, I’ve been sharing quotes of the day for over 80 days now. As you’ll notice that I also have a quotes category, I’ve shared a number of quotes here on this site, too. And if I think back to the days of AIM (AOL Instant Manager), I often had quotes as my “away” message. And even before then, I remember really liking quotes in high school and in elementary (or grade) school. So, like I said, it’s no secret that I like quotes.

If You Want to Be Happy, Spend Your Bonus On Your Coworkers

That bonus you were looking forward to at the end of the year is “yours” and you should get to spend it on you and your family. Except, research shows that’s not the case. In fact, the research indicates that spending the money on someone other than yourself actually leads to greater happiness. More than that, it can lead to your improved performance at work.

The Confirmation Bias — What Do You Really Know: List of Biases in Judgment and Decision-Making, Part 6

Why is the confirmation bias so loathed? Well, as Nickerson points out, it may be the root cause of many disputes both on an individual and an international level. Let’s think about this for a second: let’s say that in the world of objectivity “out there,” there are any number of possibilities. In the world  of subjectivity “inside my head,” there are only the possibilities that I can imagine. Humans, on the whole, tend to fear change (there are over 600,000,000 results for that search on Google!). In order to allay those fears, I’m going to prefer information that already conforms to my previously held beliefs. As a result, when I look “out there,” I’m going to unconsciously be looking for things that are “inside my head.”

Advancing America’s Public Transportation System: High-Speed Rail in the USA

When it was first announced that the US was going to work on , I was very excited! Growing up in the , I am very familiar with the value of public transportation. I often rode a bus to and from school. As I matured and wanted to explore downtown with my friends, we’d ride the  to get there from the suburban area we lived. Beyond that, when I needed to make trips between Detroit and Toronto, I would ride the  between Toronto and Windsor instead of taking the 45 minute flight. Public transportation is a great way, in my opinion, to feel better about reducing one’s .

Three Lessons from The Hobbit: On Doing What You Can, Having Faith, and Demonstrating Leadership

Anyway, as I was watching, there were a few instances I noticed that could serve as quintessential lessons. Given that The Hobbit is a good example of the hero’s journey, it’s not surprising that there’d be great lessons to be found in the story.

If You Want to Be Happy, Spend Your Bonus On Your Coworkers

We’re getting closer to the end of the year and for many firms and organizations that means it’s time to think about bonuses. Many people rely on these bonuses to get them through the holidays with all the extra spending (gifts, kids, travel, etc.). How would you react if your company made a slight change to your bonuses this year. Instead of receiving your usual 1% or 10% bonus, depending on your industry, what if your boss said you had to donate that money to a charity or that you had to spend that money on your fellow coworkers?

I’d imagine that you probably wouldn’t be too happy, am I right? That bonus you were looking forward to at the end of the year is “yours” and you should get to spend it on you and your family. Except, research shows that’s not the case. In fact, the research indicates that spending the money on someone other than yourself actually leads to greater happiness. More than that, it can lead to your improved performance at work.

In the first experiment, researchers gave charity vouchers to the experimental groups and instructed them to donate to a charity. The control group received nothing. The results:

Participants who received a $50 USD charity voucher reported being significantly happier, whereas happiness levels were unchanged for those in the control and $25 USD conditions.

In the second experiment, researchers gave members of a sports team money with which to spend on a teammate. They also gave money to the team members (of a different team) and told them to spend it on themselves. The results [Emphasis added]:

Prosocial bonus teams performed better than personal bonus teams. . . In the prosocial bonuses condition, sports teams showed a large, but statistically marginally significant increase in performance. Meanwhile, in the personal bonuses condition, there was no evidence for improved performance.

Another way to demonstrate the effectiveness of these interventions is to calculate the return on investment for prosocial and personal bonuses. On sports teams, every $10 people spent on themselves led to a two percent decrease in winning percentage, whereas every $10 spent prosocially led to an 11% increase in winning percentage.

In the third experiment, the researchers used sales teams at a pharmaceutical company. Sales teams were split up into two conditions: spending money on themselves or spending money on a coworker. The results [Emphasis added]:

Prosocial bonus teams performed better than personal bonus teams. In the prosocial bonuses condition, sales teams showed a large and significant increase in performance. Meanwhile, in the personal bonuses condition, there was no evidence for a performance improvement.

Once again, it is possible to conceptualize the effectiveness of these interventions by calculating the return on investment for prosocial and personal bonuses. On sales teams, for every $10 USD given to a team member to spend on herself, the firm gets just $3 USD back – a net loss; because sales do not increase with personal bonuses, personal bonuses are wasted money. In sharp contrast, for every $10 USD given to a team member to spend prosocially, the firm reaps $52 USD.

The research, while not extensive, adds to the growing body of evidence that prosocial behaviour can reap positive results for those who engage in it. As the researchers wrote in the discussion section, future research is needed, but this study does give managers another tool with which to improve the performance of their teams and increase the well-being (i.e. happiness) of their employees.

ResearchBlogging.org
Anik L, Aknin LB, Norton MI, Dunn EW, & Quoidbach J (2013). Prosocial Bonuses Increase Employee Satisfaction and Team Performance. PLOS ONE DOI: 10.1371/journal.pone.0075509