More risk means more reward. We all have heard that before and it is certainly true to some extent, but sometimes you can get rewards by removing uncertainty. In financial theory, you are only compensated for risks that can’t be mitigated, i.e. taking extreme risks for no purpose typically is not compensated in most financial models. However, taking risks that are economically beneficial are compensated.
What does this mean for our businesses? Our employees don’t like uncertainty. They like to know what they are getting, and they like to know that they have a safe and stable work environment. Employees will feel better, happier, more satisfied, and more comfortable at work if you take away risk. This could be in several different ways. This could be certainty with their employment, their job descriptions, and it could be certain ancillary things, such as helping them fulfill their dreams and know that they are getting where they need to in life. If they know that they can work toward their dreams and build the life that they want, then they will probably feel more engaged and less uncertain about what is happening at the company. They know that they are in control, and control reduces risk. What are you doing as an employer to minimize this risk?
In The 3 Laws of Empowerment for High Growth Companies, we talk about empowering the employees, building a path of growth, and making sure that the employees can pick a life path that they love. If employees are working towards a career they love and enjoy, they are going to work harder, do more for the employer, and feel more engaged. They are going to feel like there is less risk in their lives. They are going to know that those skills they are developing are transferable. While some employers would be scared by this, the smart employers know that there is great value in having employees that love their company. Even if they leave, you will get a great deal of productivity out of that employee, and there will be a better selection of replacement employees. Your company will benefit in the long term. Jump down and empower your employees. It will to reduce your risk and increase your productivity and profitability.
What are you doing to manage your risk? Are you empowering your employees to make things safer for you and your business? Join us in the comments below and let us know.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Nick Fletcher.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.