Risk management

Closing the gap between companies’ and employees’ tolerance for risk

During the recent years of recession, companies have made concerted efforts to reduce the gap between the amount of risk employees would like to take, and the amount that their company allows them to take (staff consistently want to take more risk than leaders’ or policy allow). Yet findings from our new data, collected from over 100,000 employees from over 1,300 companies, show that despite these efforts the gap has not shrunk – and in fact for many it has actually increased.

Through our experience of working with organisations to uncover the causes for a high gap and working with leadership teams to close it, we have seen firsthand the negative consequences of not understanding and addressing this gap. So how can companies reduce this gap and ensure they have a coherent view of risk throughout their organisation?

Hay Group has worked with many clients to diagnose the drivers that must be addressed to bring down the gap to acceptable levels, such as improving leadership effectiveness and redesigning processes, roles and reward structures.

How to reduce the gap?

Download a copy of ‘The stubborn gap: Closing the gap between companies’ and employees tolerance for risk’ to find out more about our research and information on how you can reduce the gap within your own organisation.