What are the pros & cons of risk aversion for my career decisions?

You spot a role that sounds perfect, but you hesitate:

I'd apply, but what if it's just the same, or no better? At least I know what to expect in my current job.

Maybe you’ve thought it or even said it. In uncertain moments, we may start to wonder: what's holding me back from saying yes?

One reason for that pause could be risk aversion. Behavioral economists describe it as a preference for certainty over uncertainty. It’s like staying with a job you know rather than taking on something new, even when the new role could lead to greater opportunities.

Understanding risk aversion can help you think through career choices.

Some studies suggest that risk‑averse workers aren’t necessarily put off by the job search itself, but by the uncertainty of whether a new role will truly pay off.

Risk aversion isn’t only about fear. It’s part of how we manage uncertainty in our decisions.

Even when we know an alternative career path might be better, we might still hesitate. Doubts about whether the grass is really greener can keep us where we are.

There's No "One-Size-Fits-All"

Whether it’s financial stability, timing, health, or simply not knowing what’s out there yet, our response to uncertainty can be shaped by circumstances, resources, and goals.

It makes sense that career decisions aren’t always straightforward. Some people plan ahead, others fall into opportunities, and most of us just try to make it work. Each of these paths can be part of building a career.

Let’s break down some of the upsides and downsides to risk aversion in career decisions.

Pros

• Stability and security: Staying put can protect income and benefits. Studies show that avoiding instability is a top priority for risk-averse workers.

• Strategic patience and selective gains: Risk‑averse people may move less often, but when they do, evidence suggests they secure higher wage increases and stronger early career growth.

• Reduced stress: Less uncertainty frees up more emotional bandwidth — for example, spending your evenings doing things that light you up instead of filling out multiple application forms.

Cons

• Missed opportunities: Comfort zones can mean passing on promotions or new roles that expand skills and responsibility. Over time, staying too comfortable can subtly limit long-term growth.

• Stagnation and regret: Infrequent moves may stall skill development, while fear‑based decisions can spark “what if” thinking, leaving us comfortable but stuck.

• Reduced adaptability: Avoiding change can make future pivots more difficult, especially in fast-paced industries.

If you feel stuck in indecision over a career move, start small by asking:

• Which of these pros or cons feels most true for me right now?

• Am I avoiding risk because it’s genuinely unsafe or just unfamiliar?

• What do I want my career choices to say about me and who am I trying to say it to?

• What’s one small step I can take to explore the unknown without committing to a leap?

Moving Forward

Whether you’re starting fresh or switching paths, career decisions often involve a degree of trade‑offs that can look different for everyone.

There’s no perfect formula. But there are tools that can help you assess what matters most to you and move through the uncertainty.

Gaining Perspective

Many of us have moments when we’re feeling stuck between options, unsure of what’s next. Sometimes choices feel overwhelming because the risks aren’t always clear. The Six Thinking Hats technique can help you explore problems creatively from different angles. Here's a helpful guide to the Six Thinking Hats technique.

If you want to explore your decision‑making in more depth, try the Career Decision‑Making Workbook. You may even go through it with a friend or mentor for support.

Imagine your friend is thinking about leaving their job but feels unsure. They say:

It took me so long to get this job. I’m not sure I can find another one, but I don’t see myself here long‑term.

Photo by Surface on Unsplash

Based on what you’ve learned, what’s the most helpful response?

Option 1

You should stay. It’s not worth the risk. Look what happened to Suzy!

Option 2

You should leave. You might regret it if you don’t.

Option 3

It depends. What’s making you feel like you may not find another job?

Option 4

Can you wait until the perfect opportunity comes along?

Risk aversion is just one part of the puzzle, but understanding it can help you reflect on how you make career decisions and what matters most in those choices.

When faced with uncertainty in your career, use these steps to help you map out your next move:

Explore Further

Learn how other decision biases can shape how we think about uncertainty or change in our careers with these two Bytes:

• How do I overcome status quo bias at work?

• How does the “sunk cost fallacy” influence my decisions?