The art of delegation is one that many business owners struggle to learn – but according to behaviourists and entrepreneurs, it’s one of the most important skills to master.

As your business expands, be it by 1, 10, or 100 people, knowing how to delegate is essential for both your personal wellbeing and the health of your company.

In simple terms, delegation describes the ability to:

• Give tasks that you might usually take on yourself to other responsible individuals
• Informatively instruct others so that the tasks can be completed to the standard and specification you desire
• Support others in their learning when they take on tasks you’ve delegated
• Let go of your “micro-management mindset”.

While easy to describe, acting on these points can be challenging for business owners – particularly those who have built their business from the ground up.

According to the Irish Business and Employers Confederation (Ibec) Business in 2023 and Beyond report, 39% of business owners are planning to grow the head count of their business this year. Without learning to delegate, nurturing your business as a one-man band could be challenging to say the least.

Keep reading to find out two key reasons that delegation is good for you and your business.

1. Delegation can lower your stress levels

Last month, you may have read our insights about how many family business owners experience stress, and regularly work additional hours as a result.

Sadly, it appears that business owners’ stress levels are increasing. Research published by Business News Daily reveals that in 2021, 52% of business owners felt stressed throughout the year – a 7% increase on the year before.

Of course, some of this stress may have been attributed to the pandemic, but with the increased cost of operations placing additional pressure on entrepreneurs in 2023, it is likely that stress levels may continue to rise overall.

Although delegation won’t alleviate your stress altogether, learning to trust your team could prevent you from suffering in silence. Knowing you have talented individuals on your side who can be entrusted with key responsibilities may lead you to take less of the burden upon yourself, and can encourage communication too.

One key barrier to delegation could be the anxiety that something might go wrong. After all, your company’s reputation means the world to you – so you may feel that overseeing everything yourself means no mistakes will slip through the net.

Morra Aarons-Mele, author of The Anxious Achiever, works with business leaders who experience anxiety. In an Irish Times report, Aarons-Mele says: “[Leaders] believe anxiety will make them seem weak […] and that strong leadership and anxiety are incompatible”.

If you can relate to this feeling, it’s important to confide in senior members of your team about this anxiety and work with them to achieve a more trusting, communicative environment in which you can delegate when necessary.

This could be especially important as your business grows. If you could once manage your workload alone, and now are struggling to keep a healthy work-life balance due to increased responsibilities, giving more to your team could feel like you’re “failing”. In fact, it’s a sign you’re letting go of your micro-management mindset.

No man is an island, and no business is either. Without learning to trust others and manage your own anxiety, you may struggle to progress – it’s as simple as that.

2. Employees feel more valued by managers who delegate

In addition to the personal benefits of delegation, you could find that giving more responsibility to your team has a positive impact on them, too.

Crucially, a study on the mental benefits of delegation from the US National Library of Medicine notes that “when power and authority are delegated to employees they have more freedom to work autonomously and experience a range of positive outcomes such as higher job satisfaction, organizational commitment, innovative behaviour and task performance”.

The study goes on to say that “many successful companies, including Google and Facebook, attract talent with a more relaxed management culture in which authority is delegated and subordinates are more involved in decision-making”.

Of course, your company is unlikely to have the resources of Google and Facebook, and their progressive hierarchy structure may not work for you entirely. Nevertheless, considering how the tried and true effects of proper delegation could motivate your team is still vital.

Through the power of delegation, you could create an environment in which your team thrive, progress, and feel supported at work. As a result, this move could help you retain the best talent – something that many Irish business owners are struggling to do in the current labour market.

Indeed, the quest to find and retain talented employees has been reflected in the Ibec Business in 2023 and Beyond report:

• 51% of business owners named “availability of skills/talent” as a major challenge that they faced in 2022
• “Labour cost pressures” was cited as a major challenge by 61% of respondents.

As the cost of hiring and maintaining a team of staff is likely to keep increasing, making the most of who you have on the team is crucial. If you micro-manage and refuse to trust those around you, employees may well decide to find something new.

Working with financial professionals can alleviate some of the pressures that business owners face

We can’t wave a magic wand and transform your business overnight – but we can:

• Form a years-long relationship with you
• Provide continued financial planning support
• Take some of the pressure off your shoulders.

Here at iQ Financial, we work with business owners every single day, and create bespoke personal financial solutions that allow them to focus on what’s important.

If you’re building a team, learning to delegate, and investing in your own progression, proper financial planning can be an integral part of that journey.

To get started, email us at clients@iqf.ie, or call 353 71 915 5560.

Please note

This article is for information only. It does not constitute advice.

It describes financial planning services that iQ Financial can offer to you. Financial planning services are not regulated by the Central Bank of Ireland.