6 Methods for Encouraging Risk-Taking in the Workplace

1. Recruit Risk-takers

Several steps can be taken to build an environment that promotes innovation, but it counts for very little if the people within the company are not prepared to actively take risks. While stats show that 84% of executives consider innovation to be essential for the future of their companies, many are simply not tapping into it fully due to not having the right team on board. 

Placing an added emphasis on recruiting candidates that are ready to take risks and embrace innovation will provide a stronger platform to support all subsequent innovation methods. For example, one tool that exists to test risk appetite in applicants during the hiring process is the Risk Type Compass assessment. It evaluates an individual's comfort with risk-taking and helps employers to identify the right candidates for certain roles.

2. Create a Safe Environment for Risk-taking

In the business world it is well-known that up to 95% of product innovations fail. So, risk-takers are virtually guaranteed to encounter failures while innovating. Cultivating a culture that revolves around psychological safety and embraces failure as a step en route to success, will transform the company dynamics forever. 

Using innovation management tools that encourage calculated risk-taking, employees are able to learn from their failed innovations so that certain risks can be mitigated in future endeavors. When supported by the organization, failure will no longer be feared and instead become a part of the innovation process.

3. Promote Bottom-up Innovation

Risk-taking started the moment you had an idea for your business. Frankly, a company-wide buy-in is the only way you will continue to embrace risk-taking in an effective manner. Swisscom’s approach to bottom-up innovation is a great example of how risk-taking can be supported at all levels. Swisscom's KICKBOX program allows all employees to submit their ideas, whilst the company provides them with funding and support to turn these ideas into reality. This approach fosters a culture of innovation and risk-taking, where employees feel safe to try new things without the fear of failure. 

Unfortunately, many companies fall into the trap of not engaging innovators at junior levels who feel unable to have their voices heard. With KICKBOX, several obstacles are removed, to allow employees at every level to be part of the innovation process.

4. Allow for Creative Thinking

Risk-taking is largely about trying new ideas. If your employees do not have an opportunity to leave the comfort zone of their standard daily duties, innovation and creativity will lack. There are many different ways in which to encourage innovation in the workplace. The key is, for your organization to find the approach that works.

Allowing people to take time from their standard workday when ideas surface is vital. Creativity can strike at any moment, and by allowing employees to work on their innovations while the concepts are fresh, they will be better positioned to take risks and push those projects forward.

5. Start Small and Grow From There

Risk-taking may seem like a daunting prospect for many of your employees. When making them aware that you want them to take risks and be creative, try to implement this on a smaller scale at first, such as in relation to developing a new accessory to enhance an existing product. Following this, you can think about ways to nurture risk-taking also in larger projects by innovating at scale. In turn, this should feed into your immediate and long-term objectives.

You can promote the idea of taking small steps to the next level as you move onto financial risk, strategic risk, or business disruption risk. Thanks to AI and advanced tech, you can often run a demo or simulation of an idea before deciding whether to pursue it.

6. Reward Risk-takers

Finally, if you want to cultivate a culture where risk-taking is the norm, you must incentivize team members to do this. Bonuses, promotions, perks, and career growth are all great options. Aside from actively promoting further risk, it can aid staff retention as well. After all, 79% of people that quit cite a lack of appreciation as the driving force. Furthermore, when risk-takers are rewarded, their colleagues might be inspired to do the same.

While a number of team members in your organization might be more risk averse, it is important to nurture a culture of risk-taking in a company that strives to make innovation a part of its DNA. With an innovation management program that encourages calculated risk-taking in the workplace, and the right support measures in place, your organization can be the perfect place to unlock the creative genius of your employees.