I have two newish clients who are embarking on very similar journeys. Both are international companies launching their business, or as spin-off, in the states for the first time. Both have decided to launch in California, because if you can get the people stuff right in CA, you can get it right anywhere and both have called my team in to help get them all setup from a compliance and strategic infrastructure (culture/engagement) perspective.
I mentioned last week about the use of pre-employment personality assessments. I am using Hogan Assessments with both groups to understand how potential employees may act in common workplace situations.
A big talking point for both companies is risk taking. All companies have a different view on risk taking, but for both of these companies, employees need to be risk takers. Both are in the tech space, well funded and have aggressive goals for getting their product to market. They need employees who are confident in their abilities and will take risks to move things forward. This isn’t the case for every position, but for the ones where it matters, candidates who are not risk takers may not fare well.
Luckily for these businesses we are able to assess and have these conversations with candidates prior to hire, but for leaders who have already made the hire and now realize they have a non-risk taker in a role that really calls for one, can risk taking be taught? The answer is a bit complicated but I’ll try to explain.
First, let me say that I don’t think you can change someone’s natural propensity to take risks. I believe everyone has an innate level of risk they are comfortable with. Couple that with the way they were raised and past experience around risk taking and by the time we reach adulthood we are pretty settled in our risk comfort level. I do think, however, that risk taking can be encouraged…and that is the biggest thing leaders can do.
Create a Safe Space
One of the things that both leaders I am working with are doing is ensuring that candidates know from conversation one that risk taking is encouraged and expected. The environment they create for employees asks them to take risks in their work and rewards the behavior even if the risk results in failure.
Make it Ok to Fail
This is a big one. Employees may feel comfortable taking risks, but if they know they will be criticized or worse if that risk fails, even the most risk agreeable will hold back. Risk taking has to be rewarded in the face of failure. Leaders must strike a balance between dealing with the failure in a way that doesn’t discourage employees fron taking risks in the future.
Model the Behavior
If leaders want to employ risk takers they must be one themselves. Modeling the behavior you expect is the bet way to encourage not only risk taking, but any other characteristic you encourage in employees. If employees can see leaders take risks and fail they are much more likely to be willing to do it themselves.
Risk taking as a common characteristic in environments that need it can be a difference maker. It is a characteristic that is easy to identify in the pre-hire phase with the right assessment or interview questions. It’s also an easy characteristic to model and encourage for the leader who is willing to make it a priority.
Do you work in a company where risk taking is necessary? How do you or your leaders encourage employees to take risks?