Topic 3 Advantages of Nudging

  • Businesses try to shape or influence in the behavior of its employees
  • It has been proven that influencing through nudges decreases law violations without using economic sanctions
  • Indeed, if they are applied successfully, nudges result more effective than orders, taxes, or even awareness campaigns.
  • It can also improve the effectiveness of meetings and task performance:

If you change the duration of the meetings from 60 minutes to 30 minutes, you are altering the social perspective of the meetings. If the standard time is 30 minutes, rapidly, a 45 mins meeting will be seen as a long meeting and employees will try to save time to finish it

  • Nudging can also alter positively the feelings of the employees and help the environment:

For example, individual challenges are more insightful than group challenges because employees will feel more important.

Also, if the number of papers printed is controlled weekly, employees will try to reduce their use of the printing machine and, therefore, the consumption of paper and energy

4 Ways Businesses are Using Nudge Theory:

  • Leadership development – Organisations have changes the language used to discuss career advancements
  • Tackling unconscious bias – Companies are making female employees more visible in internal and external marketing
  • Improving health – Subsidised gym memberships improve employee health and reduce absenteeism
  • Aiding financial decision making – By offering simpler pension fund choices, financial stress can be reduced
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