How To Manage Your Risk-Averse Employees

This often comes as a bit of a shock to senior leaders, but most employees do not love taking risks. For example, let’s look at the tens of thousands of people who’ve taken the online test How Do You Personally Feel About Change? One of the questions asks respondents to choose one of the following options:

• I like taking risks.
• I would take a risk if it seemed prudent.
• I avoid risks.

Overall, only 28% of respondents say that they like taking risks, but a far greater 40% of top executives like taking risks.

More than half a million people have taken the test What Motivates You? Around a third of people are motivated by a need for security; they want continuity, consistency, and predictability. By contrast, a meager one out of ten people has a deep adventure drive, where they’re motivated by risk, change, and uncertainty.

The point here is simply that most people don’t love taking risks or being on the cutting edge. Executives do, of course, and that’s often part of why they’ve risen to the top levels of an organization. But the typical frontline worker would much prefer to have a sense of stability and predictability.

Given that reality, leaders need to adjust their leadership style a bit to better accommodate the natural and understandable risk aversion of their employees. The following are four tips to help you manage people whose tolerance for risk is far less than your own.

First, give crystal clear expectations. People with a high need for security often prefer clear rules and guidelines to follow. Unfortunately, a Leadership IQ study discovered that only 29% of employees say they always know whether their performance is where it should be. As a manager, you can provide crystal clear expectations and guidelines, including timelines, deliverables, and objectives. The more you give a clear sense of direction, the more secure and confident your employees will feel.

Second, transparency is key. Risk-averse individuals will generally value honesty and transparency. The more you inform people about company changes, budget constraints, and other factors that could impact their job security, the more comfortable and engaged they’ll be.

Third, you may not be able to always provide stability and continuity, but when you can, it’s a great benefit. The more you can keep your employees’ work consistent without capricious changes, the better they will perform.

Fourth, recognize their contributions. This isn’t necessarily unique to your more risk-averse employees, but it’s an incredibly powerful tool for keeping those with a high need for security and consistency on track. A dose of positive reinforcement lets them know that you’re paying attention and that what they’re doing is moving in the right direction.

Overall, when your team has folks with a decent dose of risk aversion, plan out your actions. Avoid announcing new changes in an extemporaneous stream of consciousness; think through your words and actions carefully. Remember that while you may love the adrenaline rush that comes from being on the cutting-edge, not everyone does. Provide clear expectations, be transparent, and offer stability and continuity where you can, and you’ll get far better performance from your employees that prefer security to adventure.