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Are you Nudging your employees in the right direction?

If you’re using incentive pay, you are nudging.
If you’re using positive reinforcement, either social or material, you are nudging.
If you have department action teams (DATs), you are nudging.
If you have a culture that calls forth engagement from your employees, you are nudging big time.
But do you know why nudges work? This article in the Economist magazine describes the fundamentals of nudging…and provides a mnemonic that describes the best nudges.
Twenty-five years ago, when I wrote the book “Compensation and Motivation”, no one was using incentive pay as a nudge to engage non-sales employees. Now almost everyone is using it.
What will nudges look like 25 years from now?


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