Nudges: Instruments from behavioral economics for successful change projects

Change is now omnipresent in companies and is necessary in order to remain competitive. However, following numerous crises and transformation projects, many companies are experiencing increasing “change fatigue” among their employees. In addition to traditional approaches, behavioral science findings can help to overcome this and motivate employees to embrace change.

Corporate nudging as a motivating instrument for change

In order to anchor changes effectively and sustainably in the corporate culture, they must be reflected in the behavior of all employees. However, it usually feels easier and safer for employees to stick to their usual behavior than to adapt to the changes. This is precisely where “nudging” comes in – a tool from behavioral economics that makes use of psychological principles.

A nudge is a targeted intervention that gently steers employees' behavior in the direction of the desired change without restricting their freedom of choice. This means: A nudge makes it easier and more attractive for employees to opt for the change.

A few examples:

  • Information Nudges: Clearly understandable information is given at exactly the right time – timing is crucial.
    Example: When booking business trips, the CO2 emissions for air, car or rail travel are automatically displayed to help choosing emission-friendly business trips.
  • Default Nudges: Default options are adjusted.
    Example: To improve the meeting culture, a shorter standard duration for meetings is set in Outlook.
  • Environment Nudges: The physical environment is specifically redesigned.
    Example: Employees disinfect their hands reliably before entering the production hall, as the door to the hall can be opened by pressing the disinfectant dispenser.

Success factors for the use of corporate nudges

For nudges to work, they must be developed specifically for the respective change project. The first step is to identify beneficial and obstructive employee behaviors. Then, tailor-made interventions are developed that address precisely these behaviors. Ideally, the nudge is then tested and its effectiveness regularly evaluated.

In this way, corporate nudges create an environment in which changes can be implemented sustainably.

Picture: Jacob Mejicanos via Unsplash

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