Ambiguity tolerance is a skill that can equip an organisation to perform and thrive in dynamic and volatile environments.

A big part of our job as HR professionals is understanding and supporting the capabilities that our people need to drive the delivery of organisational objectives. Ambiguity tolerance is the new ‘super capability’ that can enhance current and future performance, while also supporting wellbeing. 

Ambiguity tolerance refers to the comfort a person feels working in situations with novelty, complexity or conflicting information. Tolerance levels range on a spectrum from ‘aversion’ to ‘attraction’. A person with higher levels of tolerance (i.e., attracted to ambiguity) will feel more comfortable working in these circumstances, enabling them to problem solve faster, with less stress. 

While research on this topic dates back to 1949, the past 20 years has seen a resurgence in its interest across disciplines including clinical and organisational psychology, economics and politics. This interest may be due, in part, to the global and local shifts brought on by advancements in AI, the COVID-19 pandemic, cybersecurity threats, economic instability, and many other destabilising changes. 

Given predictions about the future and evidence about the average low levels of ambiguity tolerance in the population (<10% have a high tolerance of ambiguity) this capability is likely to become even more important in the workplace. 

The future is uncertain

The World Economic Forum’s (WEF) 2023 Global Risk Report found ‘older’ risks such as inflation, cost-of-living crisis, widespread social unrest, geopolitical confrontation, and nuclear warfare have returned. 

However, few of our business leaders and public policymakers have hands-on experience in responding to these risks of the past. On top of these threats are relatively new global risks, such as unsustainable levels of debt, a new era of low growth, de-globalisation, rapid and unconstrained development of technologies, and the growing pressure of climate change impacts and ambitions. 

HR faces additional upheaval. New employment regulations are on the horizon, along with the challenges of an aging workforce, the increasing importance of culture, and the changes in employee expectations about flexibility and associated impacts on collaboration.

The WEF found that: “Together, these are converging to shape a unique, uncertain and turbulent decade to come”. PwC’s Future of Work 2023 report agreed that today’s challenges are complex, and our environment is “volatile”. The latter report admonishes that these challenges can only be successfully overcome if they are met ‘head on’.  

Ambiguity can take a toll

Managing the waves of uncertainty and ambiguity, however, is easier said than done. 

Ambiguity is stressful. This stress response is natural, thanks to our brain’s flight or fight response. However, this response can impact our ability to function, make decisions and perform as needed. People typically find making decisions in ambiguous situations harder, compared with making risky or difficult decisions.

Counterintuitively, leaders are particularly susceptible to the negative impacts from operating in dynamic uncertain environments. Research has confirmed that managers are less comfortable with ambiguity than non-managers, which particularly impacts leadership self-efficacy and performance.

It’s no surprise then that half of Australian leaders currently experience significant levels of stress most of the day, every day, according to research from Gallup. Australian leaders experience the second highest rate of stress, compared with leaders in all other countries included in the research.

This impact doesn’t stop with leaders. A leader’s ambiguity tolerance can have a direct effect on how their team performs and copes with their own stressors and challenges.

That’s why it’s important to keep an eye out for signs that your organisation may have a low tolerance for ambiguity. These can include:

• Slow progress. This can signal overwhelm at the volume and complexity of work.
• Lack of momentum. People are like deer in headlights; unable to maintain focus, make decisions or be productive when faced with ambiguity or uncertainty at work.
• A focus on the status quo. You need innovative solutions to respond to challenges and people are stuck in old ways of thinking.
• A ‘can’t-do’ attitude. People are focused on the obstacles and limitations instead of exploring other perspectives that could lead to new possibilities.
• Decision delay. Crucial decisions are being avoided because people don’t have all the information they want.
• Giving up. People give up too easily and are unwilling to take risks or try new things because they’ve a hard time dealing with failure and setbacks.

The pace of uncertainty and ambiguity is unlikely to slow down. When guiding teams through turbulent times that are rife with uncertainty, the ‘discomfort curve’ only gets steeper. At stake is our people’s wellbeing as well as our organisation’s performance.

The question then becomes: if most of us are uncomfortable dealing with volatility, uncertainty and ambiguity, but we know it’s coming, how can we prepare our workforce to meet the challenges head on so they can respond and adapt?

Develop a tolerance baseline

Like any capability, the first step towards improvement is measurement. There are a number of evidence-based diagnostic instruments that can assess an individual’s unique response to ambiguity. 

One example is the Indicator of Ambiguity (I Am), which specifically measures tolerance of ambiguity at work. It identifies a person’s response on the spectrum of very unclear (aversion) to very clear (attraction). This diagnostic will also ‘prescribe’ the specific skills and activities that can be practiced to strengthen ‘immunity’ against ambiguity and uncertainty. 

However, building ambiguity tolerance isn’t just about performance through responding and adapting to tricky situations at work. It can also act as protection against burnout and other negative workplace outcomes. 

Research has shown that higher levels of tolerance are associated with greater resilience and levels of wellbeing, emotional intelligence and creativity, along with reduced stress.

So what can HR leaders and managers do to help people to feel more comfortable operating amid uncertainty (which is fast becoming a requirement for all)? According to research, there are eight skills that we need to embed into our teams:

These eight skills are:

• Mindfulness – being aware and present without being overwhelmed. In other words, being in control.  
• Assertion – being able to take control of a situation and influence others without aggression. 
• Finding focus – minimising distractions and focusing on the task at hand when confronted with a new, uncertain, ambiguous or unfamiliar environment.
• Unlocking inertia – being able to look and move forward rather than focusing on the past and what has been.
• Curiosity – being able to query, challenge and look beyond the conventional to solve a problem or seize an opportunity.
• Creativity – thinking outside the box, or even creating a new box to find creative solutions.
• Courageous actions – facing fears, speaking the truth and taking steps towards the unknown despite the fear.
• Flexible thinking patterns – considering multiple perspectives to find a solution rather than being wedded to a ‘way of doing things’ as well as being able to see the bigger picture and adapting as the situation changes. 

HR at the frontlines

There will undoubtedly be countless crises that will arise in the next 12-24 months. HR plays a critical role in ensuring that organisations are adequately prepared to navigate these crises through greater ambiguity tolerance, which I believe is fast becoming the new super capability.  

Samantha Rush is an expert in decision-making. She has formal qualifications in HR, psychology, an MBA, and is currently undertaking a PhD in decision making. She combines this evidence-based knowledge with 20 years’ experience as a corporate executive, company director, business advisor and consultant to help unravel complexity and facilitate great decision making that drives results.

Need help navigating workplace change? AHRI’s short course will arm you with the skills to understand change dynamics at an individual, team and organisational level.