The document provides information about a webinar on leveraging behavioral nudges in HR. It includes: 1. Details about the webinar such as the speakers, moderator, and topic of leveraging behavioral nudges in HR functions. 2. Instructions for participating in the webinar including how to adjust audio, access slides and resources, participate in live Q&A and group chat, and post on Twitter. 3. Frequently asked questions about receiving slides, reviewing recordings, and HRCI certification for the webinar.

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Leveraging Behavioral Nudges in
Your HR Function

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Speaker: Sarah Newcomb
Behavioral Economist
Morningstar Inc.
Moderator: Kellye Whitney
Associate Editorial Director
Workforce magazine
Leveraging Behavioral Nudges in
Your HR Function

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Frequently
Asked
Ques6ons

8. #WFwebinar
Kellye
Whitney
Associate
Editorial
Director
Workforce
magazine
Leveraging Behavioral Nudges in
Your HR Function

9. #WFwebinar
Sarah
Newcomb
Behavioral
Economist
Morningstar
Inc.
Leveraging Behavioral Nudges in
Your HR Function

10. Leveraging Behavioral Nudges
In Your HR Function
August 20, 2015
Sarah Newcomb, Ph.D.
Behavioral Researcher
HelloWallet, Morningstar

11. “The most practical strategy for
accumulating several hundred
thousand dollars”
for retirement.
- Opinion Research Corporation for the Consumer
Federation of America and the Financial Planning
Association
More
than
one
in
five
Americans
think
that
playing
the
lo?ery
is

12. Encouraging
Behavior Change
WHERE
WE’RE
HEADED
1. Choice
Architecture
2. Nudging
for
Op6mal
Outcomes
3. When
in
Doubt…Test!

13. Choice Architecture & Nudges
“A
choice
architecture
represents
the
interface
–
menu,
ordering
and
structure
–
of
opEons
that
are
available
for
individuals.”
-­‐
Tepo
Felin,
Nudge:
Manager
as
Choice
Architect,
2014

14. How do you get people to eat
fewer calories1?
1.
Wansink,
B.,
and
van
I?ersum,
K.
2013.
“PorEon
Size
Me:
Plate-­‐Size
Induced
ConsumpEon
Norms
and
Win-­‐Win
SoluEons
for
Reducing
Food
Intake
and
Waste.”
Journal
of
Experimental
Psychology:
Applied
19
(4):
320–32.

15. Boost Organ Donation Rates2?
2.
Eric
J.
Johnson
and
Daniel
Goldstein
“Do
Defaults
Save
Lives?”,
Science
21
November
2003:
302
(5649),
1338-­‐1339.

16. Get a Flu Shot3?
3.
Milkman,
K.,
Beshears,
J.,
Choi,
J.,
Laibson,
D.,
and
Madrian,
B.,
“Using
implementaHon
intenHons
prompts
to
enhance
influenza
vaccinaHon
rates.”
PNAS,
vol.
108
no.
26,
pp.10415-­‐10420

17. Choice Architecture & Nudges
When
are
they
needed
and/or
appropriate?
When
natural
biases
threaten
desired
outcomes
• Hiring
• Benefits
SelecEon
• Engaging
with
Online
Tools

18. Nudging Ethics
1) Transparency
2) Autonomy
3) Privacy
4) Fairness

19. Nudges in Hiring
Know
the
natural
biases
that
interfere
with
opEmal
talent
acquisiEon
• Men,
or
masculine
leadership
styles
• A?racEve
people
Marlowe,
C.M.,
Schneider,
S.L.,
&
Nelson,
C.E.
(1996).
Gender
and
a?racEveness
biases
in
hiring
decisions:
Are
more
experience
managers
less
biased?
Journal
of
Applied
Psychology,
81.
• Those
who
are
like
ourselves
• Preference
for
potenEal
over
actual
experience.
Tormala,
Z.L.,
Jia,
J.S.,
&
Norton,
M.I.
(2012).
The
preference
for
potenEal.
Journal
of
Personality
and
Social
Psychology,
103,
567-­‐583.

20. Nudges in Hiring

21. Diversity in Hiring is Threatened
by…
Implicit
Biases
• Managers
of
BOTH
sexes
are
twice
as
likely
to
hire
a
man
than
a
woman4.
• And
then
there’s
this
graph
showing
implicit
racial
bias
among
whites
in
the
U.S.
4.
Reuben,
E.,
Sapienza,
P.,
&
Zingales,
L.
(2014).
How
stereotypes
impair
women’s
careers
in
science.
Proceedings
of
the
NaHonal
Academy
of
Sciences
,
111
(12
),
4403–4408.

22. Homophily
Noun:
The
tendency
of
individuals
to
associate
and
bond
with
similar
others.
The
presence
of
homophily
has
been
discovered
in
a
vast
array
of
network
studies.
5.
Miller
McPherson,
Lynn
Smith-­‐Lovin,
and
James
M
Cook,
“Birds
of
a
Feather:
Homophily
in
Social
Because
informal
networks
are
prone
to
homophily,
exis6ng
paVerns
of
gender
and
race
bias
can
be
reinforced
by
company
referral
programs.
(Cohen
et
al.,
1998;
Fernandez
et
al.,
2000)

23. Diversity in Hiring
What to Do?
• 48%
of
employees
are
not
aware
of
iniEaEves
to
increase
diversity
within
the
company
they
work
for.
(Glassdoor
survey,
July
2014)
Let
employees
know
that
diverse
applicants
are
encouraged,
and
be
open
about
the
traps
of
groupthink
that
arise
from
homogenous
work
environments.
Make
it
a
known
issue
in
your
workplace

24. Nudging Greater Diversity
• “Feel
the
Need”
messages.
Help
people
to
get
past
an
intellectual
understanding
of
the
need
for
diversity.
Make
it
emoEonal.
Show
them
how
the
difference
in
added
producEvity
that
diverse
workplaces
have
will
affect
the
company’s
survival,
or
their
annual
bonus.
What
are
your
company’s
HR
Icebergs?

25. Diversity in Hiring
Knowledge is Power
Inform
hiring
managers
of
specific
gender
and
racial
biases
and
how
they
can
affect
the
hiring
process.
Have
them
assess
their
own
implicit
biases
using
Harvard’s
Implicit
Antudes
Test
h?ps://implicit.harvard.edu/implicit/takeatest.html

26. Diversity in Hiring
Become Bias Literate
h?p://uvasearchportal.virginia.edu/?q=bias_literacy

27. Nudges in Hiring
• When
relying
on
informal
networks
like
employee
friends
&
family
members
for
referrals,
homophily
is
a
threat
to
diversity.
Make
sure
your
company’s
referral
incen%ves
are
weighted
by
the
company’s
objecEve
to
increase
diversity.

28. Benefits Selection
60%Of households are
accumulating debt
faster than
retirement savings
…most employees simply want
someone to tell them what to
do…based on a deep
understanding of an individual's
needs, preferences, and
behaviors, which results in more
personal guidance.
– Amy Cribbs, Head of Vanguard
Participant Experience
“
We’re
facing
a
crisis
of
under-­‐contribuEon
and
reErement
plan
leakage

29. Benefits Selection
Freedom
of
Choice
Expansion
of
Informa6on
PotenEally
lead
to
increased
saEsfacEon…BUT…
Come
at
the
cost
of
cogniEve
load.

30. Mo’ Choices, Mo’ Problems
• SelecEon
difficulty
is
one
of
the
key
drivers
of
DECISION
AVOIDANCE
6
6.
Anderson,
C.
J.
(2003).
The
psychology
of
doing
nothing:
Forms
of
decision
avoidance
result
from
reason
and
emoHon.
Psychological
BulleHn,
129,
139–167.
7.
Schwartz,
B.,
Ward,
A.,
Monterosso,
J.,
Lyubomirsky,
S.,
White,
K.,
&
Lehman,
D.
R.
(2002).
Maximizing
versus
saHsficing:
Happiness
is
a
maTer
of
choice.
Journal
of
Personality
and
Social
Psychology,
83,
1178–
1197.
• MaximizaEon
moEves
7
• Greater
regret
• More
social
comparison
• Greater
incidence
of
depression

31. Encouraging Action:
Make it Simple
A
simple
heart
icon
was
be?er
at
improving
diet
choices
than
calorie/fat
content
info8.
8.
Boonme,
K.,
Hanus,
B.,
R.
Prybutok,
V.,
A.
Peak,
D.,
&
Ryan,
C.
(2014).
Visual
informaEon
influences
consumer
fast-­‐food
choices.
NutriEon
&
Food
Science,
44(4),
279–293.
9.
Maureen
Morrin,
Susan
M.
Broniarczyk,
J.
Jeffrey
Inman
(2012)
Plan
Format
and
ParEcipaEon
in
401(k)
Plans:
The
ModeraEng
Role
of
Investor
Knowledge.
Journal
of
Public
Policy
&
MarkeEng:
Fall
Star
raEngs
reduce
perceived
choice
difficulty.
Offering
star
raEngs
for
funds
increased
adopEon
and
saHsfacHon
rates
among
employees
with
low
financial
knowledge9.

32. Encouraging Action:
But not Too Simple!
Perceived
task
complexity
drops
when
the
focus
is
placed
on
key
a?ributes10.
BUT...Too
few
opEons
can
promote
the
search
for
more
opEons,
triggering
the
Maximizing
MoEve
and
the
user
will
ulEmately
be
less
saEsfied11.
Incomplete
informaEon
about
key
a?ributes
increases
decision
difficulty.
4.
Broniarczyk,
S.
M.,
&
Griffin,
J.
G.
(2014).
Decision
Difficulty
in
the
Age
of
Consumer
Empowerment.
Journal
of
Consumer
Psychology,
24(4),
608–625

33. Encouraging Action:
Decision Aids Pros & Cons
Adapted
from:
Broniarczyk,
S.
M.,
&
Griffin,
J.
G.
(2014).
Decision
Difficulty
in
the
Age
of
Consumer
Empowerment.
Journal
of
Consumer
Psychology,
24(4),
608–625.

34. Online Portals & Tools

35. Online Portals & Tools

36. Online Portals & Tools

37. Online Portals & Tools

38. Encouraging Action:
The Tightrope
Brevity
Completeness
TESTING

39. Test to Learn What Works

40. We’re testing everyday: big theories
SOCIAL PROOF GAIN LOSS AVERSIONCONTROL
Clear Winner!!
We’re
TesEng
All
the
Time:
Big
Theories

41. Social Comparison

42. We’re testing everyday: small details
Time of day, day of week
• Tuesday at 10:30AM
• Wednesday at 10:30AM, 12:00PM, and 5:30PM
• Thursday at 10:30AM
• Sunday at 5:30PM
Clear Winner!!
We’re
TesEng
All
the
Time:
Small
Details

43. We learned a lot, and increased
conversion by 80%!
Key Findings: What’s Worked
Call to Action
Original: “Start Today”
New: “Get My Account”
Result: 42% Conversion Increase
Time of Day & Subject Line
Original: “[Employer] Associates, Introducing a new
tool from your 401(k) plan!” at 11:00AM EST
New: “[Employer] Associates, Your HelloWallet
Account is Ready!” at 10:30AM EST
Result: 13.7%* Conversion Increase
Ease of Sign Up
Original: Email to Landing Page
New: Email to Sign Up Page
Result: 36% Conversion Increase
Key Findings: We’re Wrong!
Aspirational Template
Base: Original Template Design
Tested: Aspirational template design
Result: 37% Conversion drop for test group
Unique Subject Line & Sender
Base: [Employer] Benefits sender and “Reminder, Your
HelloWallet Account is Ready!” subject
Tested: “Your Financial Future” sender and “Come Find
me On HelloWallet” subject
Result: 66%* Conversion drop for test group
Omit “Free” and Shift to Social Proof
Base: Reminder with “Free” in Header and no social
proof
Tested: Remove “free” and include social proof statement
Result: 36% Conversion drop for test group
TesEng
Helped
Us
increase
Conversions
By
80%

44. Resources
45
posts
on
A/B,
Mul6variate,
and
Usability
Tes6ng:
h?p://Enyurl.com/pa259rx
h?p://www.amazon.com/Designing-­‐Behavior-­‐Change-­‐
Psychology-­‐Behavioral/dp/1449367623
h?ps://whichtestwon.com/

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