It is impossible for both the owner of a large corporation or a small business, to be everywhere at once. Keeping track of business functions including payroll, inventory, managing staff, business planning and analysis cannot be done by one person alone. According to recent industry stats, 70% of individuals in leadership roles are uncomfortable transferring their responsibility to a subordinate and less than 30% of companies today provide training to enhance the leader’s delegation techniques.
As you begin your business, taking on all of the tasks may be a reality however as you grow, you will have less time to spend on things that need your attention. Spreading yourself too thin and trying to have your efforts in every area of the business will not serve you well and you will be risking the true potential of the business.
At this point delegation, or distribution of responsibilities to employees, is needed. Delegating work allows you to offload responsibilities to employees and allows you to focus on larger business matters. Here are a few reasons why I believe delegation is important in any business:
1. Expands the capabilities of the company
Delegation creates a chance to progress and grow the company. Through delegating, you can develop new divisions or departments of the company. New divisions and department can create new positions allowing those that are qualified to move up and advance their career in your business. As this happens your business will grow in all directions.
2. Frees up the leader to address higher value activities
By delegating tasks to employees, you as the owner, are able to attend to critical business functions and address areas that matter the most. Some of these may involve future planning of the business, developing your business strategy and analyzing your performance. By putting delegation practices in place, the business as a whole will grow and efficiency within the organization will improve.
3. More responsibility for employees means overall business growth
Delegation helps not only the manager or owner of the company keep good business order but also helps employees to feel important and responsible for their own actions and responsibilities. Having employees responsible for their own tasks gives them a sense of purpose and drives them to perform at their best, as it is their name on the line. Giving them a sense of entitlement allows your business to flourish as this applies to all levels of staff. Delegating tasks to employees is a great way to motivate the team and keep them moving up in your business.
Retaining quality employees allows for successful business. Delegating and allowing employees to take on more responsibility allows them the opportunity to develop and grow in their career and it allows you as the owner to put your efforts where they matter most – growing your business.
When we hear the term “staff turnover,” we immediately think it’s a bad sign that a business is not doing well, or they don’t follow the best hiring processes. As a business advisor to small businesses for over 30 years, I can assure you that staff turnover can also be a good thing for your business.
Pros To Staff Turnover:
- Fresh Ideas: When you hire new employees, they can bring fresh perspectives, new experiences and energy that could lead to innovative ideas. When they are not attached to the old ideas nor to the “way we do things” attitude, they can bring you insights you didn’t have before.
- The 20% Rule: You know the saying: “20% of your staff do 80% of the work”. When you reward the 20% for their efforts, this can energize your workforce and strengthen your role as the leader and the balance of staff will either improve their performance or move on.
- Avoid Complacency: When staff feel what they did yesterday is “good enough,” they have become complacent and this can be the enemy of every organization, fostering an environment of “status quo” and an aversion to risk-taking only leads to poor employee morale and increased employee sick time and poor job satisfaction.
Cons For Staff Turnover
- Dismissal: It is never a pleasant thing having to dismiss an employee, but once you have determined employees are no longer fulfilling the role you hired them for, and you have given them ample opportunity to improve, it is time to save your business and let them go.
- Rehiring: Hiring new staff ultimately costs money and time. To ensure you hire the right people from the start with the right skills who fit into the company’s culture, make sure you have a clear hiring process, with written job descriptions and defined roles and responsibilities. You should have an onboarding process and internal measurement and evaluation matrix to ensure they are performing the role you hired them for.
- Train and Communicate: Invest time in training and communicating your expectations of them in their new role. Sometimes smaller businesses have a tendency to hire a person to perform a specific role, but then start loading them with responsibilities and tasks that are outside of that role. For example, asking the new sales person to design your brochures or write content is not realistic.
Your new hire will not know everything about the job in the first week, so do not set them up to fail – rather, give them clear examples of what you expect from them in a measurable and manageable document. Bearing that, if an employee has been with you for many years and is still not able to meet your expectations, then the right thing to do for both you and the company is to let them go.
Regardless of your hiring process, every business needs to have staff turnover as roles change and your business evolves. Don’t see it as a bad thing, or a good thing, but rather a “chance to grow.”
Do you think employee turnover can help or hinder your business?