Are New Graduates Happier Making More Money or Having More Time?

A.V.  Whillans

Article | Harvard Business Review (website)

Are New Graduates Happier Making More Money or Having More Time?

Abstract

Each year across North America, millions of graduates have to make tradeoffs between time and money as they plan their next steps. Despite the importance of these choices, we know surprisingly little about how people navigate major life decisions that involve making more money at the expense of having less time, and vice versa. Researchers asked more than 1,000 graduating college students in Canada whether they generally prioritized time or money. They found that students who prioritized time at graduation were happier and more satisfied with their careers 1 to 2 years later than those who prioritized money. They explored why that might be and how factors like financial security and student debt play a role in people’s decision-making and happiness.

Keywords: time; tradeoffs; Money; Decision Making; Personal Development and Career; Satisfaction;

Format: Electronic

Citation:

Whillans, A.V. "Are New Graduates Happier Making More Money or Having More Time?" Harvard Business Review (website) (July 25, 2019).

Conventional wisdom says you should ask your colleagues for feedback. However, research suggests that feedback often has no (or even a negative) impact on our performance. This is because the feedback we receive is often too vague—it fails to highlight what we can improve on or how to improve. New research suggests a better approach. Across four experiments—including a field experiment conducted in an executive education classroom—researchers found that people received more effective input when they asked for advice rather than feedback.

When making major life decisions—such as choosing what to do after graduation—is it better to prioritize time or money? In a pre-registered longitudinal study of 1,232 graduating university students, respondents who valued time over money chose more intrinsically rewarding activities and were happier one year after graduation. These results remained significant controlling for baseline happiness, potential confounds such as materialism and socioeconomic status, and when using alternative model specifications. These findings extend prior research by showing that the tendency to value time over money is not only predictive of daily consumer choices but also of major life decisions. Additionally, this research clarifies the direction of the observed associations between valuing time and money and happiness, showing that valuing time over money uniquely contributes to well-being, in part by encouraging intrinsic motivation. Together, this work sheds new light on whether, when, and how valuing time shapes happiness.

When looking to improve workplace performance, people often seek third-party input by asking for feedback. However, we propose that asking for feedback might not be the most effective way of soliciting critical and actionable input. We offer a simple yet powerful alternative: ask for advice instead. Across four experiments (N=1,438), including a field experiment, we show that people offer more critical and actionable input when they are asked to provide advice (versus feedback)—even when they are asked to provide comments on identical output. When asked to provide feedback (versus advice), givers focus too much on evaluating the recipient, which undermines their ability to generate constructive (i.e. critical and actionable) input. Our findings suggest that framing feedback provision as advice provision may be a promising way of soliciting constructive third-party input.

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Are New Graduates Happier Making More Money or Having More Time?

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