Roughly 350,000 people work in the industry, which is characterized by cultural differences, fragmented responsibilities, and a large proportion of young workers. The complexity is high, with many contributing factors that lead to challenges such as deviations, waste, and time loss. In this context, how much does the behavior of workers matter? And is there something we can do to change that behavior?
How do you get a formwork carpenter to change their behavior?
Each of us makes approximately 35,000 decisions every day. Let us assume that 10 percent of those are work-related. Multiply that by the number of people in the industry, and you get around 1.2 billion decisions made each day.
Making decisions often involves weighing risks against safety, short-term gains against long-term benefits, and what is right versus wrong. Even something as simple as putting on safety shoes involves this type of evaluation. There is the risk of injury if you skip it due to being in a hurry, versus the desire to stay safe over time.
But a formwork carpenter does not consciously weigh these pros and cons every time they put on safety gear. It would require far too much energy to assess the risks and benefits of every one of those 35,000 daily decisions. Instead, much of our behavior is automated. We form habits and act on impulse. We rely on mental shortcuts that free up energy for the decisions that truly need deeper reflection.
Nudging is about influencing behavior based on how we actually think and act, which is often impulsively and heavily influenced by the situation we are in. It does not rely on the assumption that we make rational and logical choices, because we do not do that as often as we think.
In practical terms, a nudge is defined as a measure intended to influence people’s actions in a desired direction without using force, punishment, or financial reward. This definition comes from Cass Sunstein and Richard Thaler in their book Nudge (2008).
A typical nudge could be reducing the size of the nail packs instead of asking employees to use fewer nails. Or it could mean placing safety gear alongside the tools needed for a task, instead of expecting everyone to remember to retrieve safety equipment from the site office, which they are unlikely to do.
What might nudging look like in the construction sector?
Let us consider three major cost areas in the construction industry. These are time wasted, material and resource loss, and the cost of correcting errors. There are many factors that can influence these outcomes, but we will focus on some common mental shortcuts people tend to use. We will also show how nudging can influence behavior and possibly reduce costs.
Time wasted
Optimism bias is one possible explanation for why time is often wasted. This is the tendency to underestimate costs, time, and difficulties while overestimating how easy it will be to complete a task. In short, we are overoptimistic.
The consequence is that projects almost always take longer than planned, or we fail to prepare for the unexpected.
A simple nudge to counter this bias might be as basic as reminding those who are estimating a project of the likelihood of delays. Highlighting the risk of being wrong reduces optimism bias. Our decisions are strongly influenced by the information most readily available at the moment we choose. Reminders work because they shift our attention to different, more relevant information.
Material wasted
Anchoring bias is particularly relevant in this context. This is the tendency to use a known value to estimate something unknown. For example, estimating the need for materials and resources based on a previous project that may not be similar to the current one. This can lead to overordering, which drives up material costs and adds expense related to storing or discarding surplus materials later.
A nudge that can help counter this bias is using digital checklists and simple quality systems based on data from multiple similar projects, rather than relying on estimates from a single past project.
Fixing errors and defects
We are frequently driven by impulse and the circumstances we are in. It often feels easier to go with a quick fix rather than doing something the right way from the start. This tendency is known as temptation bias. One example is accepting sloppy work at the moment with the intention of fixing it later, rather than taking the time to do it correctly from the beginning.
A nudge that can help address this behavior is creating a culture that rewards long-term thinking and discourages taking shortcuts. One way to achieve this is by partnering with highly respected employees who can set as an example. This uses what we know about social influence, where people tend to adjust their behavior to match that of those around them. We conform to avoid standing out.
335 pilots saved fuel and cut emissions
An excellent example of effective nudging comes from Virgin Atlantic, which worked with 335 of its pilots to change their behavior and reduce fuel consumption. Pilots have considerable influence over how much fuel is used during a flight.
They decide how much fuel to load before departure and make many decisions during the flight, such as selecting speed, altitude, and route. They also have options to conserve fuel, such as shutting off an engine while taxiing. Even when external circumstances dictate certain actions, the cumulative impact of their choices remains significant.
In collaboration with behavioral economists from the London School of Economics, Virgin Atlantic conducted a randomized experiment using data from more than 40,000 flights flown by the 335 pilots over one year. They measured fuel consumption before takeoff, during flight, and upon landing. The pilots were randomly divided into four groups. One group served as the control group, while the others were exposed to different nudging interventions.
The control group (group 1) was only told that their fuel use would be monitored. Even this limited intervention led to a reduction in consumption.
The second group received monthly feedback reports on their fuel use for eight months.
The third group received the same feedback, plus explicit goals for reducing fuel consumption. They were also praised when they met the targets and encouraged if they fell behind.
The fourth group received monthly feedback, specific goals with praise and encouragement, and were told that Virgin Atlantic would make a charitable donation of 100 NOK each month on their behalf whenever they achieved their fuel-saving targets in all three categories.
All three nudged groups outperformed the control group in reducing fuel consumption. The best-performing group overall was the one that received feedback, praise, and donations. Although their performance did not remain higher than the third group in the long term, they reported higher job satisfaction after the experiment.
Overall, the initiative helped Virgin Atlantic save 6,828 tons of fuel, worth around 400 million NOK, and prevent the release of 21,507 tons of carbon dioxide. This was achieved with a few simple reports, some encouraging words, and modest donations. In other words, nudging works.
What can you do?
Start small. Do not try to change every aspect of workplace behavior all at once. For example, focus on a specific task such as ordering insulation, and test your intervention with one group before scaling up.
When using nudging, it is important to:
Understand how people make decisions and how mental shortcuts influence behavior.
Consider which nudging strategies will work best, based on the context and the people whose behavior you are trying to influence.
Develop and test different solutions in collaboration with employees.
Evaluate the results, test again, and make improvements.
One final note of encouragement. Just by reading this article and becoming more aware of the mistakes we all make, you are already more likely to succeed in reducing time loss, material waste, and costly errors in your organization.
