The BI Beat - June 2024
Welcome to the BI Beat, a section dedicated to Behavioral Insights in NASWA's monthly newsletter. Here, states can stay informed about the latest developments in the field and learn more about what's happening in the world of Behavioral Insights!
The Path of Least Resistance
Imagine you're in a new city, using Google Maps to find your way to an appointment. You see three route options: 18, 22 or 25 minutes. Which one do you choose?
Most of us would pick the 18-minute route, right?
Nobel Prize winner Daniel Kahneman explains this common human tendency in his book Thinking Fast and Slow with the "law of least effort." This principle states that if there are several ways to achieve the same goal, people will naturally choose the least demanding option. Humans like to take the path of least resistance.
State workforce agencies can leverage this understanding by making desired actions simpler. For example, a state might:
- Make registration for RESEA appointments quick and easy, perhaps with a one-click online sign-up, to encourage claimants to attend.
- Simplify their forms and incorporate plain language to motivate Unemployment Insurance (UI) claimants to complete necessary forms. Clear instructions and straightforward questions can significantly reduce the perceived effort.
- Provide a simple "cheat sheet" instead of a lengthy manual to help claimants stay in compliance with UI program requirements.
With efficient and streamlined processes, claimants won't have to choose the path of least resistance; instead, they'll benefit from a system designed to be as user-friendly and straightforward as possible.
To get started with creating these processes, NASWA Members can refer to the Behavioral Insights Toolkit. Some examples of resources are the enhancement of eligibility letters for Nevada’s Department of Employment, Training, and Rehabilitation or the redesign of an online weekly claims process.
Findings from the Field
Behavioral Insights is a dynamic and evolving field that can be used by governments to develop sustainable public policy solutions. As the field of Behavioral Insights progresses, new academic literature emerges, revealing insights that can greatly benefit state agencies. Here is a recent study that offers findings relevant to NASWA members:
Using Behaviorally Informed Messaging Can Improve Program Compliance. In Belgium, a team of behavioral researchers partnered with the Mechelen City Government to encourage people to pay their parking fines on time. To do so, the researchers tested out different versions of a notification letter for the city to send to people with existing fines. The versions they tested were:
- An Original Letter, which the city had already been sending out;
- A Simplification Letter, which had a simpler design and less text than the original letter;
- Combination Letter #1 (Simplification + Explicit Penalty), which added a statement highlighting the consequences of not paying attention to the simplification letter. For example, “Watch out: Avoid additional costs by paying your fine within 30 days. These additional costs can amount to 197 euros.”
- Combination #2 (Simplification + Explicit Penalty + Social Norms), which added a social norm statement like, “Two out of three people pay their administrative fine on time. Will you follow this example?”.
The researchers divided 2,664 people with existing fines across four groups to determine which letter had the biggest effect on the timeliness of payments. They found that participants who received either of the Combination letters were more likely to pay their fines on time, compared to those who received the Original or Simplification letters. Notably, those who received the Combination #2 letter were the most likely to pay their fines on time.
This study shows that behaviorally informed messaging, like highlighting social norms or loss aversion, can be a helpful tool for improving program compliance. It also demonstrates that simplification alone may not be enough. NASWA members can use these findings to help inform their plain language and integrity efforts, in areas where claimant compliance is critical to program success.
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Reach out to us at integrity@naswa.org.
