The news lately has carried several stories about people lamenting that their tax refund is much smaller than usual. For some people, the total amount of taxes paid could be equivalent or less than the aggregate tax paid in previous years, but how it is paid – and thus, the amount of refund earned – is really what is at issue.
Employers, marketers and others should note this phenomenon and incorporate lessons from it into their policies and behaviors. A little payment over a long time doesn’t amount to much in the mind of the payee – but it does accumulate (such as in a retirement plan). The converse is true – that a little increase in pay doesn’t seem significant in the employee’s mind – but a bonus check with the same amount in one lump sum seems to have more heft and buying power. A small, incremental improvement isn’t noticed but one large renovation or change creates enhanced impact.
If a small difference seems to be swallowed up in the scope of the whole, people should use this to their advantage. Do small things that add up to good and you won’t notice it or hold back small rewards until they become a big win and gain more from the same amount.