Behavioral Economics

Behavioral economics is a field of study that blends psychology and consumer economics in order to understand why people make sub-optimal decisions about important performance, financial and health care matters. Most decisions that people make involve “mental short cuts” and some degree of emotion. Often, behavioral biases come into play and the result can be sub-optimal decisions.

Is your organization struggling with increasing healthcare costs or low employee participation in wellness initiatives? Behavioral economics is critical to solving these challenges. 

Sibson helps clients identify the sub-optimal decisions being made by their workforce and quantifies their impact to the organization. Sibson’s experts have extensive experience with reframing plan designs and with employee communications to create a more effective choice architecture that guides employees toward better decisions. This helps solve nagging “pain points” for organizations and improves:

  • Population health
  • Health care consumerism
  • Attendance within time off and absence programs
  • Employee satisfaction with cash compensation
  • Performance management processes and productivity
  • Workforce retirement readiness
  • Participation in initiatives such as wellness, retirement programs and voluntary benefits
  • Investment results

Behavioral economics can be very helpful to an organization’s bottom line and for employees’ lives. By using principles from behavioral economics, organizations can encourage employees to make better decisions that will improve outcomes for themselves and the organization. Behavioral finance, a close cousin to behavioral economics, helps improve investment results with retirement plans. No matter where your focus is with employee benefits and your workforce, Sibson can help design or realign your strategy, your plan designs and your communications to better meet your goals.

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