Behaviour Change Techniques: An Application to Increase Employees' Willingness to Accept a Salary Reduction.

Abstract

During the COVID-19 pandemic, many organisations worldwide asked their employees to accept a temporary salary reduction to manage the financial consequences of the unprecedented event. In this paper, we use a CEO's salary reduction announcement to all employees and investigate whether a behaviour change intervention using five selected Behaviour Change Techniques (BCTs) increases expat employees' overall willingness to accept a temporary salary reduction. We use mixed qualitative and quantitative methods, including survey and experiment, to test our hypotheses and frame our results. The results show that, while the direction of impact was positive, respondents were overall not significantly more likely to accept a temporary salary reduction. However, a significant effect was found for the individual BCT 'Modelling'. Participants were significantly more likely to accept a pay cut if they knew their senior management took a larger cut than asked of participants. The outcomes of this study suggest that the availability of a financial buffer and the strength of the employer-employee relationship play a, possibly more important, role in employees' willingness to accept a pay reduction. In addition, leadership matters as this study shows that people are more willing to accept a salary reduction when senior management leads the way.