The Power of Nudging when Working from Home

Abstract: Working from home has become common in the aftermath of the Covid-19 pandemic. Extensive research about different aspects of the area has been made, but employee productivity is still an issue that many companies struggle with as employees have gained a new type of freedom when working from home. As a result, this study will explore if the behavioral economic theory concept of nudging can have an impact on employees' productivity when working from home. Nudging has through previous research been shown to effectively direct people towards preferred behaviors, but no research has established its potential impact on people who work from home. The purpose of this thesis is therefore to examine whether employees who work from home believe that nudging tools, presented in scenarios, would affect their productivity. This is followed by if the impact of nudges is moderated by the field of business, level of seniority, or the working-from-home frequency that the individual possesses. To obtain the results, a quantitative survey and qualitative interviews were performed and the result was established through Reliability tests, Correlations, Paired Sample t-tests, and descriptive analyses. The study shows that when nudging is defined by certain tools, the concept has an impact on productivity among employees who work from home. When applying moderators, the result is altered and therefore they can be taken into consideration when implementing nudges. These findings are useful for managers responsible for employees working from home, as the nudging tools can be applied in strategies and used to create a more productive work environment.