- Every decision we make is informed by biases and heuristics, but they are a double-edged sword. They enable people to make quick and intuitive decisions but also lead to rash and misinformed choices.
- Biases and heuristics are of particular concern in an organizational context since misinformed or suboptimal decisions made by employees can have a significant impact on organizational outcomes.
- Nudges are not new: HR professionals have been applying the concept in practice for decades without having a formal name for it. But by taking an informed, measurable approach, HR can stop guessing and start reporting on the effectiveness of their nudge interventions.
Impact and Result
- HR can use nudges to improve employee decision making: nudges are a behavioral science tool to alter the environment and context that decisions are made in to encourage better decision making.
- Map out the decision-making process of employees’ suboptimal behaviors to determine any pressures or bottlenecks that are inhibiting employees from making better decisions.
- Develop ethical nudges that address the pressures and bottlenecks faced by employees.
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