When "nudge" is just another word for "advert"

Martha Gill's Irrational Animals column.

Most people will have heard of the “nudge unit” – a crack team of behavioural economists installed in Downing Street which has the power to wire policy directly into our frontal cortices, using only cutting edge neuroscience and door-to-door leafleting.

For those that haven’t, “nudging” is an evidence-based strategy that aims to influence people’s behaviour towards certain of David Cameron’s more benign policies, such as cutting energy use and reducing obesity. It’s a canny way of motivating people without offering financial reward. To get people eating healthily, for instance, it helps to put apples, rather than crisps, on eye-level shelves in shops.

At base, however, “nudging” is just a scienced-up and buzzworded-down way of saying “advertising”. The trouble for Cameron is that, for every penny spent marketing his policies through nudge, thousands more are spent by the advertising industry to encourage us to go in what is often precisely the opposite direction. So, it’s not surprising that the effects of nudging have as yet been lukewarm.

Part of the problem is that the nudgers aren’t yet fully realised advertising men. Advertisers know the importance of targeting an audience, but nudging is very one-size-fits-all. What is perhaps more troubling for Cameron is that his core audience and his core voters are not often the same people.

A US study by Dora Costa and Matthew E Kahn of the University of California, Los Angeles showed that conservatives are far less susceptible to nudges in the direction of energy conservation than liberals. Researchers designed leaflets that let households know how much energy they were using compared to their peers (with a smiley face if they were using less and a frowny face if they were using more), and handed them out to a mix of conservative and liberal households. While this nudge usually lowered carbon consumption in liberal households, it actually had the opposite effect in conservative homes.

The researchers thought that the “boomerang” effect had been much stronger among conservative voters. If they saw they had used less energy than others (smiley face), they were likely to increase their energy consumption to catch up. This was because they had not been on board with the basic energy saving  ideology from the start; the leaflet merely nudged them towards the norm.

Cam can’t

A nudge unit is, all in all, an odd choice for Cameron. Not only are conservative voters less likely to be on board with the policies, which generally are more tailored to appeal to the community-minded, they are also more likely to act in defiance against any such “nannying” moves.

So, if they want to extend their influence, nudgers need to take more lessons from the advertising industry. This is inconvenient for them, as they like to brand themselves as a breed apart. Nudging itself, you see, is an industry – and markets itself sagely, knowing our weakness for all things science. It’s not science, though: it’s leafleting, and right now it’s leafleting all the wrong doors.

An image taken at Bristol Science Centre. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

This article first appeared in the 17 September 2012 issue of the New Statesman, Who comes next?

Getty
Show Hide image

There's nothing Luddite about banning zero-hours contracts

The TUC general secretary responds to the Taylor Review. 

Unions have been criticised over the past week for our lukewarm response to the Taylor Review. According to the report’s author we were wrong to expect “quick fixes”, when “gradual change” is the order of the day. “Why aren’t you celebrating the new ‘flexibility’ the gig economy has unleashed?” others have complained.

Our response to these arguments is clear. Unions are not Luddites, and we recognise that the world of work is changing. But to understand these changes, we need to recognise that we’ve seen shifts in the balance of power in the workplace that go well beyond the replacement of a paper schedule with an app.

Years of attacks on trade unions have reduced workers’ bargaining power. This is key to understanding today’s world of work. Economic theory says that the near full employment rates should enable workers to ask for higher pay – but we’re still in the middle of the longest pay squeeze for 150 years.

And while fears of mass unemployment didn’t materialise after the economic crisis, we saw working people increasingly forced to accept jobs with less security, be it zero-hours contracts, agency work, or low-paid self-employment.

The key test for us is not whether new laws respond to new technology. It’s whether they harness it to make the world of work better, and give working people the confidence they need to negotiate better rights.

Don’t get me wrong. Matthew Taylor’s review is not without merit. We support his call for the abolishment of the Swedish Derogation – a loophole that has allowed employers to get away with paying agency workers less, even when they are doing the same job as their permanent colleagues.

Guaranteeing all workers the right to sick pay would make a real difference, as would asking employers to pay a higher rate for non-contracted hours. Payment for when shifts are cancelled at the last minute, as is now increasingly the case in the United States, was a key ask in our submission to the review.

But where the report falls short is not taking power seriously. 

The proposed new "dependent contractor status" carries real risks of downgrading people’s ability to receive a fair day’s pay for a fair day’s work. Here new technology isn’t creating new risks – it’s exacerbating old ones that we have fought to eradicate.

It’s no surprise that we are nervous about the return of "piece rates" or payment for tasks completed, rather than hours worked. Our experience of these has been in sectors like contract cleaning and hotels, where they’re used to set unreasonable targets, and drive down pay. Forgive us for being sceptical about Uber’s record of following the letter of the law.

Taylor’s proposals on zero-hours contracts also miss the point. Those on zero hours contracts – working in low paid sectors like hospitality, caring, and retail - are dependent on their boss for the hours they need to pay their bills. A "right to request" guaranteed hours from an exploitative boss is no right at all for many workers. Those in insecure jobs are in constant fear of having their hours cut if they speak up at work. Will the "right to request" really change this?

Tilting the balance of power back towards workers is what the trade union movement exists for. But it’s also vital to delivering the better productivity and growth Britain so sorely needs.

There is plenty of evidence from across the UK and the wider world that workplaces with good terms and conditions, pay and worker voice are more productive. That’s why the OECD (hardly a left-wing mouth piece) has called for a new debate about how collective bargaining can deliver more equality, more inclusion and better jobs all round.

We know as a union movement that we have to up our game. And part of that thinking must include how trade unions can take advantage of new technologies to organise workers.

We are ready for this challenge. Our role isn’t to stop changes in technology. It’s to make sure technology is used to make working people’s lives better, and to make sure any gains are fairly shared.

Frances O'Grady is the General Secretary of the TUC.