HR organisations are under mounting pressure to increase productivity as leaders double-down on generative AI (GenAI) investments – however, productivity gains remain elusive.
LJ Justice, research director in the Gartner HR practice, looks at understanding the behavioural barriers impeding productivity and what actions CHROs should take to leverage nudgetech – an emerging set of AI-powered tools to boost productivity and change employee behaviours.
Why aren’t organisations seeing substantial productivity gains from GenAI?
Many organisations aren’t seeing meaningful benefits from GenAI because leaders often overlook everyday behavioural barriers that hinder productive work such as completing tasks on time. Simply introducing tools that promise greater efficiency without addressing the underlying behaviours that enable it can leave companies falling short of their goals.
Additionally, the rapid pace of new technology adoption is putting pressure on employees. Workers may worry about job loss or role changes, increased productivity monitoring, or disruptions to their daily routines. These concerns can quickly become productivity barriers which is why CHROs need to take an active role in addressing them.
What is nudgetech and how can it drive productivity?
CHROs at leading organisations are experimenting with nudgetech, an emerging set of AI-powered tools, as an option to boost productivity to change employee behaviours. We define nudgetech as an AI-enabled choice architecture designed to elicit behaviours that accelerate targeted positive outcomes at the individual, team and/or organisational level.
Nudgetech applies the principles of “nudge theory” which says that small design choices in a given environment can encourage people to make better decisions.
In practice, nudgetech can encourage or ”nudge” employees to take quick breaks to avoid burnout, focus on high-priority tasks, or even get realtime, personalised prompts that make it easier to navigate different working styles and collaborate more effectively. While the changes may seem small, they add up to create a more productive environment.
With its potential to drive employee behaviour changes, nudgetech is a promising solution to help CHROs close the gap between existing productivity investments and employee behaviours that drive productivity.
What actions can CHROs take to improve productivity via nudgetech?
Near-term: CHROs should start by finding the right areas to apply nudgetech. Surveys and employee focus groups can help surface the key behavioural barriers to productivity. Managers should also track common productivity metrics to see where nudges could make the biggest difference.
Once the barriers are clear, CHROs can set specific nudgetech goals – then partner with IT and business leaders to align investments with those goals. From there, they can roll out nudges that directly encourage behavioural change.
Long-term: CHROs should work with vendors to pilot nudgetech before rolling it out fully, testing solutions in collaboration with employees, IT, and HR teams. This approach helps address AI-related risks and ensures the tools actually fit the organisation’s needs.
After nudgetech is deployed, CHROs need to have their teams regularly monitor results, track progress, and make adjustments to keep the tools effective over time.