The Principle of Scarcity in Organizational Change
Jan 10, 2023
People place more value on things that are harder to obtain. We often want what we can’t easily have. This psychological force is widely used in advertising, leveraging limited availability or time constraints to encourage purchases. Scarcity applies not only to physical goods but also to information, making messages seem more desirable and positively received when less accessible.
Conditions for Effective Scarcity
Research shows that scarcity works best under these two conditions:
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Recent Scarcity: When something becomes scarce recently, its perceived value increases.
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Competitive Element: When people must compete to obtain a scarce resource, it becomes even more appealing.
The Six Principles of Influence by Robert Cialdini
Scarcity is one of the six principles of influence described in Robert Cialdini’s Influence. Here’s a recap:
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Commitment and Consistency: Small commitments lead to greater follow-through.
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Social Proof: People tend to follow the behavior of others.
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Liking: We are more likely to agree with people we like.
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Authority: Credible experts inspire trust.
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Reciprocity: Giving something encourages others to give back.
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Scarcity: Limited availability increases desirability.
Applying Scarcity in Organizational Change
Using scarcity in the workplace or during change initiatives may not seem intuitive at first. After all, you want as many people as possible to embrace the change. However, scarcity can be a powerful tool to spark desire when applied with the right intent and strategy.
Strategies for Using Scarcity
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Create Limited Access
Limit seats in training sessions, executive lunches, or workshops about the company’s future. Sequential access allows those most eager to participate first, inspiring others through their experiences. Play on FOMO (fear of missing out) by framing opportunities as rare or exclusive, like a kickoff event for a new program. -
Foster Exclusivity
Participation in major initiatives can be made exclusive, such as inviting high performers to join a task force or granting early access to a new platform for loyal users. Clear, fair criteria are critical to prevent unintended consequences. -
Introduce Time-Based Scarcity
Use competitions or deadlines to create urgency. For example, encourage employees to adopt a new app or provide key information by a specific date. While deadlines may feel like pressure, framing them as opportunities can motivate participation.
When Scarcity Doesn’t Work
Scarcity isn’t a guaranteed solution. Overexposure or familiarity with the principle can diminish its impact. Additionally, the quality of outcomes—such as rushed submissions—might not meet expectations. Scarcity works best as an occasional tool, enhancing a well-designed change plan rather than being the sole driver.
A Final Thought
Scarcity is most effective as a supplementary enabler within a robust strategy. Before using it, always ask: "Will this help us achieve our goals more effectively without causing unintended consequences?" Applied wisely, scarcity can trigger desire and accelerate progress toward organizational change.
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