Empowering Employees to Make Decisions: It's Just Good Business

When you have to make all the decisions, you are the bottleneck, and your business can only grow as big as you have the capacity to decide!

Over the years, one thing I’ve learned is that empowering employees to make decisions isn’t just a nice-to-have—it’s essential. Giving people the autonomy to act can drive significant results, and it’s not just anecdotal. The numbers back it up. Studies from Harvard Business Review show that companies where decision-making is pushed down the ranks grow 30% faster. It makes sense when you think about it—when employees are trusted to make real-time decisions, the whole organization moves quicker and adapts more smoothly.

And it’s not just about growth. When people feel they have control over their work, they’re more engaged. A Deloitte study found that 65% of companies with decentralized decision-making saw a notable boost in employee engagement. Engaged employees stick around longer and show up with more energy. Additionally, Gallup research tells us that engaged teams see a 21% rise in profitability. It’s a win for both the employees and the company.

Innovation is another huge perk. When decisions are only made at the top, good ideas can get stuck. But when employees have the freedom to think and act, new ideas flow more easily. In fact, companies with decentralized decision-making are 33% more likely to lead their industries in innovation. That’s huge. As a startup or small to medium size business, where things are always changing, being able to quickly pivot and try new things is key.

Of course, letting employees make decisions isn’t about just throwing the keys to the car and walking away. It’s about giving them the right tools, setting clear expectations, and providing support along the way. At WAKE Management, we believe that when employees are given autonomy, they don’t just rise to the occasion—they thrive. This approach has helped our portfolio companies stay nimble, engaged, and innovative.

Creating an environment like this requires some structure. Communication is critical. If everyone understands the company’s goals and vision, they can make decisions that align with the bigger picture. Training is also important. Employees need the confidence and skills to make those decisions wisely. And let’s not forget feedback. Having regular check-ins and debriefs to reflect on what’s working and what’s not helps everyone learn and improve.

Ultimately, it’s about trust. Trusting your team to make decisions might feel risky, but the payoff is incredible. Faster growth, more engaged employees, and a culture of innovation are the rewards. As someone who has led a few businesses (including several at the same time), I’ve seen this approach transform companies, and it’s something I’m passionate about. When people feel empowered, they not only show up—they shine.

If you’re curious about how empowering your employees could change your business, I’d love to talk. It’s one of those things that seems small but makes a massive impact in the long run. I'd love to help you create a culture where everyone’s invested in your company’s success.