How can you get people to voluntarily behave in a certain way without plastering the world with mandatory or prohibition signs? Nudging deals with this question and is already celebrating great success thanks to clever answers.
What is nudging?
Roused from sleep by a shrill roar, I reflexively press the snooze button on my alarm clock and then briefly drift off into the world of dreams. Suddenly I remember that I have arranged to go jogging with my work colleague in the morning - a measure to help me fulfil my New Year's resolutions. This appointment with my work colleague is a measure that I have taken to achieve a desired behaviour. That is nudging.
With his nudging theory, Richard Thaler laid the foundations for a liberal alternative to the unpopular prohibition culture. The concept of "nudging" was first developed as a political strategy based on behavioural economic insights and findings. The aim is to encourage people to behave in a certain way by giving them small "nudges".
Nudging is based on two basic assumptions. Firstly, people do not always do what they would like to do. The intention to be more physically active often fails because you feel tired. Secondly, the problem of the first assumption - tiredness - is very easy to outwit.
Is nudging a wolf in sheep's clothing?
The question of whether this instrument of behavioural control restricts our freedom of choice is of course justified. In the search for answers, we come across other questions, such as whether there is such a thing as transparency in politics or in corporate management. Questions about the importance of human autonomy and personal responsibility also become relevant.
The key to nudging is that the circumstances of decision-making are changed in such a way that it becomes more likely that people will act in a certain direction. By slightly shifting the framework, behaviour should be positively influenced.
But this is the crux of the matter: who decides in which direction people should be "nudged"? Who defines the moral norms of "right" and "wrong"? This raises major socio-ethical questions. However, it is clear that nudging is a promising method for influencing people's behaviour. For example, people can be "nudged" into healthier eating habits by reducing the standard plate size, strategically positioning salads or placing unhealthy menus on the second page of a menu.
The question of whether nudging is now a wolf in sheep's clothing is certainly justified, but can be answered confidently in the negative. Nudging is an instrument that, like many other instruments, can be used destructively or constructively, positively or negatively, favourably or hostilely. The decisive factor is how nudging is used.
Nudging in HR
But what about nudging in the company - who determines where nudging is directed? Every company is dedicated to a specific goal. And everything is done to achieve this goal. Against this background, the method of nudging appears to have great potential as an instrument of successful corporate management and therefore also in HR.
Almost two years ago, Laszlo Bock, ex-head of HR at Google, founded the start-up "Humu". A tool that is based on nudging theory and aims to bring innovation to the HR sector. "Humu provides employees and managers with personalised and motivating suggestions that are tailored to their personality traits and potential. Laszlo Bock has thus achieved a successful application of nudging in HR.
However, a much wider field opens up for the use of these subtle nudges if HR can use nudging to significantly optimise the corporate culture and employee wellbeing. Push notifications on smartphones or computers can remind employees to get some fresh air, blink their eyes or do something good for themselves. Nudging can also relieve employees by defining realistic objectives for projects. Another nudging approach to promote employee wellbeing would be to set all email accounts to inactive by default at the weekend.
The finance and HR departments can also benefit directly from nudging. For example, expenses can be reduced by setting the travel app to second class by default for train journeys or by displaying a notice that, for example, 70% of colleagues choose second class. Although travelling in first class would still be permitted, employees would be incentivised to opt for second class.
We believe that nudging is a method that is worth trying out. Used correctly, it can support a company on the path to positive change and even protect employees from an authoritarian, regimented corporate culture.
Would you like to talk to us about how HR nudging can be used in your company? Our HR Strategies Team will be happy to answer your questions.