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Engage or Bust! 2015 - David Halpern - The Nudge Unit
The document discusses the application of behavioral insights to encourage better decision-making among individuals, with a focus on various case studies, such as increasing pension enrollment and tax payment rates. It highlights the impact of timely and attractive messaging on improving engagement and productivity across multiple sectors. Additionally, it emphasizes the importance of social norms and reciprocity in promoting positive behaviors and compliance.
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Engage or Bust! 2015 - David Halpern - The Nudge Unit
- 1. © Behavioural Insightsltd David Halpern CEO, BIT National Advisor on What Works www.behaviouralinsights.co.uk
- 3. © Behavioural Insightsltd “Our government will find intelligent ways to encourage, support and enable people to make better choices for themselves.”
- 4. © Behavioural Insightsltd David Cameron Prime Minister Lord O’Donnell Chair of Academic Advisory Panel Sir Jeremy Heywood Cabinet Secretary and Head of Steering Board Behavioural Insights Team Dr. David Halpern (Director) Owain Service (DD) Dr. Rory Gallagher (International) Academic Advisory Panel Richard Thaler (Chicago) Peter Tufano (Oxford) Theresa Marteau (Cambridge) Peter John (UCL) Maurice Birlotti (UCL) Nick Chater (Warwick) Dan Goldstein (LBS)
- 5. © Behavioural Insightsltd Changing the world a nudge at a time…
- 6. © Behavioural Insightsltd SOCIAL TIMELYATTRACTIVE EASY
- 7. © Behavioural Insightsltd Suicide – a mysterious reduction… Hawton, 2007; Kreitman, 1976
- 8. © Behavioural Insightsltd Increasing the number of people with a workplace pension 61% 83% 44% 77% Before auto-enrolment After auto-enrolment Large employers Mid-size employers
- 9. © Behavioural Insightsltd 10% 15% 18% 27% Control + Claimant Name + Advisor Name + Reciprocity Attract! – getting people back to work Highest performing text (‘+Reciprocity’) % of job seekers turning up to the Jobcentre Total number of SMSs sent = 1,224
- 10. © Behavioural Insightsltd Social - increasing tax payment rates within 23 days (1 month) 33.6% 35.1% 35.9% 37.2% 39.0% Control (8,558) UK Norm (8,300) Local Norm (8,403) Debt Norm (8,779) Local + Debt Norm (8,643)
- 11. © Behavioural Insightsltd Timely - increasing diversity in the Police 111.9 105.9 112.1 110.5 Non-BME BME Control Treatment
- 12. © Behavioural Insightsltd Engagement and productivity
- 13. © Behavioural Insightsltd Carol Dweck
- 14. © Behavioural Insightsltd Example: reducing quit rates of adult learners • Important • I can succeed • Practice matters • Plan ahead • I belong
- 15. © Behavioural Insightsltd Increased attendance rates 59% 64% Control Treatment
- 16. © Behavioural Insightsltd Reduced dropouts 25% 16% Control Treatment • Msgs cost 3.5p each • Largely automated • Across the year less than £5
- 17. © Behavioural Insightsltd Implementation intention - % off benefits at 13 weeks 51% 60% Control Treatment Treatment Adjusted 4% Benefit history difference 5% Treatment effect
- 18. © Behavioural Insightsltd People helping people – harnessing reciprocity and the ‘economy of regard’ The visiting hours are between 2pm to 5pm
- 19. © Behavioural Insightsltd Grant, Norton, Gino…
- 20. © Behavioural Insightsltd Informing choices may change the character of work itself
- 21. © Behavioural Insightsltd Where next?
- 22. © Behavioural Insightsltd “David Cameron’s Vanity Project”
- 23. © Behavioural Insightsltd Press coverage
- 24. © Behavioural Insightsltd Australia Singapore Peru USA Israel UK Government Moldova Ukraine Belarus Montenegro Guatemala Canada Oman UAE Germany Finland Netherlands Pakistan India Mexico Colombia Jamaica
- 25. © Behavioural Insightsltd Tax compliance in Latin America: Guatemala case study $6.67 $6.82 $14.19 $16.16 $20.64 $24.62 Control Original BIT letter BIT + National Pride BIT + Social Norms BIT + Deliberate Choice
- 26. © Behavioural Insightsltd 1.6% 1.5% 12.1% 19.1% Public gain (16,807) Public loss (17,159) Loss-frame People with large debts react differentlySegmentation: which messages work for who… Owe £30,000+
- 27. © Behavioural Insightsltd Productivity, trust, and better informed firms
- 28. © Behavioural Insightsltd Behavioural insights have proven highly impactful on several levels Goals swb Policies Midata; regulation; public health; php Processes Letters; texts; scripts; web design etc RCTs ‘What Works’ centres
- 29.
Editor's Notes
- #4 Talk about political mandate Steering Board Academic advisory panel
- #5 Add something on sunset clause? Key objectives?
- #16 In a bad labour market (2012), jobseekers were 5% points more likely to get into work… now being rolled out nationally
- #17 In a bad labour market (2012), jobseekers were 5% points more likely to get into work… now being rolled out nationally
- #23 Press were initially sceptical Ben Goldacre in particular: So here is my fantasy. We sack the Behavioural Insights Team – all they’ll do is overextrapolate from behavioural economics research – and open a Number 10 Policy Trials unit instead.
- #27 The blue bars show the effect in the overall population. The blue bars show the effect on people with income tax debts of more than £30,000. The two messages we tested were: [Public gain] “Paying tax means we all gain from vital public services like the NHS, roads, and schools.” [Public loss] “Not paying tax means we all lose out on vital public services like the NHS, roads, and schools.” Overall, there was a small (but significant) increase in payments in the overall population. Interestingly, men responded more to the loss frame. The effects were much larger (up to 19 percentage points) in the large-debt population. Moreover, there was a statistically significant effect of the loss frame in this population. The larger effect may be because the message is more credible for people who owe more: £30,000 could realistically make a difference to a school. (Note that people with larger debts are actually LESS likely to pay overall, all things being equal.) This points towards the need to segment messages for maximum effect. However, it’s worth noting that most of the messages we tested worked well across most groups (there was little heterogeneity in the grand scheme of things).