What are you willing to risk to get ahead?
Taking risks is essential in growing business and a career. It’s especially important for women, who are less likely to take risks than men, studies show.
Joy Chen, chairman and CEO of skincare company H2O Plus Beauty, San Francisco, says, “Taking risks—big and small—takes you out of your comfort zone, allowing you to learn, grow and be challenged. But the most important thing about taking risks is this: Risks eventually pay off.”
Accelerators, a special report by Network of Executive Women (NEW), written with the Center for Creative Leadership, lays out 13critical competencies women need to advance their careers in retail and consumer goods. “Effectively taking risks” ranked second—just behind “leading change”—as the skill with the widest gap between women’s current competency and the level needed to succeed in our industry. (Download Accelerators free at newonline.org/itstime.)
Given these findings, it’s not surprising that women are perceived as more risk-averse than men. A Pew Research study found women leaders are perceived as better than their male peers at three of five leadership traits: being honest and ethical, providing fair pay and benefits, and mentoring employees. But men are perceived as better negotiators and more willing to take risks.
Social vs. Business Risk
But women aren’t averse to taking all risks. Recent research, including Who Takes Risks When and Why? by the Columbia Business School, shows both men and women are risk-takers, but they differ in the kinds of risks they are comfortable taking. Women perceive financial, recreational and ethical risks to be higher risks than men do. But they see social risks as less risky than men do.
Kayt Sukel, author of the just-published “The Art of Risk: The New Science of Courage, Caution & Chance,” sees the science this way: Women will stick their necks out for their “in-group.” As she told Forbes, “They are the ones who will be more likely to bring up an unpopular issue in a work meeting.”
Unfortunately, women are less likely to take these social risks when it comes to their own careers. A man will have a career discussion with a supervisor and confidently ask—and expect—to get a raise. A female peer is less likely to risk asking for a raise for herself, though she wouldn’t hesitate to request a raise for a deserving team member.
The good news: The more experience you have with a risky situation, the more comfortable you’ll feel with it in the future, according to the Columbia University research.
Practice makes perfect, so here are five actions for women who want to embrace risk at work:
- Stop looking for affirmation before making a decision. Believe your experience, ability and due diligence are enough. Be confident you’re doing the right thing.
- Raise your hand for a stretch assignment. Step out of your comfort zone. You don’t have to be an expert at every part of a new role.
- Consider a lateral move—or even a step back—if it means getting the senior role you want later. Today’s business leaders need to be familiar with all parts of the business. A vertical promotion may be a quick step up that leads nowhere.
- Don’t dismiss an opportunity that involves relocating. It’s not easy to move to a place where you have no friends or to uproot your family. Before saying no, ask yourself, “How will this job help my career? What’s the next step?” Do your homework about the city, cost of living and moving expenses. Be certain about the new role; meet with your prospective boss and colleagues to get a sense of the city and work culture. How much support will you have for the relocation and ramping up in a new role?
- Don’t forget the value of failing. Not all business or career risks will pay off. But failing brings valuable knowledge and experience, and it teaches resilience.
To succeed in retail and consumer goods, taking risks isn’t an option. It’s essential.
Nancy Krawczyk is vice president of corporate partnerships and engagement for the Network of Executive Women. Reach her at nkrawczyk@newonline.org.
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