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Bringing Nudge Theory to Career Development Marie Alty

Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

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Page 1: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Bringing Nudge Theory to

Career Development

Marie Alty

Page 2: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Overview of workshop

Exploring how nudge theory

can be applied to career

development

Page 3: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Expected outcomes In the session today we will:-

1. Explore the key features of nudge

theory

2. Explain how nudge theory influences

behaviour

3. Discuss and evaluate how nudge

theory can be applied to career

development

Page 4: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

What is Nudge Theory?• Nudge theory - concept in behavioural

science, political theory and economics

• Positive reinforcement and indirect suggestions can influence the motives, incentives and decision making of groups and individuals

• Influence is at least as effective, if not more so, than use of direct instruction, legislation, or enforcement

Wikipedia 2015

Page 5: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Use of Nudge Theory

– famous flies! • Urinals in the toilets on the Schiphol Airport in

Amsterdam have the outline of a fly, etched

into the porcelain

• Research found that urinals with the fake flies

reduced spillage by 80%!

Page 6: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Use of Nudge Theory – text messages

sent by Jobcentre

“Eight new Customer Assistant jobs are now available at Tesco. Come to Bedford

Jobcentre on Monday 10 June between 10am and 4pm and ask for Sarah to find out more”

How many attended?

- Approx 11%

Number attending rose to 27%

Then added the client’s nameIncreased the

number attending to 15%

Signed off with the jobcentre adviser name and wished them luck…

Page 7: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

BIT Projects using Nudge Theory

• Reduce UK college drop outs July 2015

• Increase numbers of SMEs taking part in a

tax vouchers scheme – August 2015

• Improving outcomes for young people in

Somerset – July 2015

For more details and more examples please see

Behavioural Insights Team website -

www.behaviouralinsights.co.uk

Page 8: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

The power of inertia, the status

quo bias and mindless choosing!

• Gains and losses

• Status quo bias

• Mindless choosing

Page 9: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

The Two Systems of How we Think

Automatic System

• Uncontrolled

• Effortless

• Associative

• Fast

• Unconscious

• Skilled

Reflective System

• Controlled

• Effortful

• Deductive

• Slow

• Self-aware

• Rule-following

Page 10: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Applying Nudges to Career

Development Activity – discuss examples of nudges for one of the following:-1. Getting the most from attending a careers

education event

2. Encouraging clients to use their action plan

3. Motivating NEET clients

4. Attending appointments

5. Making applications for college/6th form

6. Reaching a career decision

Timing – 10 mins, then feedback

Page 11: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

When do we need a nudge?

- some ethical considerations

• Freedom of choice?

• Misconceptions

• Default options

• Libertarian paternalism

Page 12: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Summary

• Links to other theories – psychology,

behaviour, economics

• Scope for application to careers

guidance and development work

• Ethical considerations

Page 13: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

References • Thaler, R. and Sunstein, C.(2009) Nudge,

Improving Decisions about Health, Wealth

and Happiness, London, Penguin

• Tversky, Amos & Kahneman, Daniel

‘Judgement under Certainty: Heuristics and

Biases’ Science 185 (1974): 1124-31

• Samuelson, William and Zeckhauser, Richard

‘Status Quo Bias in Decision-making’ Journal

of Risk and Uncertainty 1’ (1988): 7-59

Page 14: Bringing Nudge Theory to Career Development · •Thaler, R. and Sunstein, C.(2009) Nudge, Improving Decisions about Health, Wealth and Happiness, London, Penguin •Tversky, Amos

Further Information

Contact details

• Marie Alty – [email protected]

• Adviza website www.adviza.org.uk and click

on Learning and Development

Thank you