People don’t like to lose. We associate unpleasant emotions with it, like sadness, pain and frustration. Indeed, we’re hard wired to avoid losses. Especially when it comes to money. Finding £100 is nice, but being out of pocket £100 is just not on.
When we make decisions we tend to focus on cost and risk, rather than gains. It’s why we prefer to play it safe when investing, or why we’re willing to pay for insurance products, or why we’re so unhappy to buy something at full price knowing it was previously for sale at discount.
Loss aversion can be constraining. How many times, in our moments of reflection, do we wish we’d taken the chance? But for the most part, loss aversion is beneficial to the way we run our lives. It helps us shy away from potentially ruinous outcomes.
SteadyPay is designed around loss aversion. Our customers are paid by the hour or the task, and as a result their pay can be volatile. We protect our customers from the downside of this volatility. When their pay would otherwise take a hit due to working fewer shifts, taking time off sick or going on a holiday, we’re there to ensure they receive their regular pay.