An organization’s greatest asset is its people. That’s why building a people strategy has become an operational priority for businesses that seek sustainable growth, innovation, and long-term success.
A people strategy provides a clear framework for attracting, retaining, and developing employees. Whether you’re building your first people strategy or refining an existing one, this guide will provide the steps to create a people strategy that turns your workforce into a competitive advantage.
What is a People Strategy?
A people strategy is a clear plan for how a company manages, develops, and maximizes its employees to meet business goals. It’s often called a human resources or workforce strategy, but at its core, it’s all about ensuring your people are set up for success.
A good people strategy understands that employees are a company’s most valuable resource. It focuses on aligning their skills, goals, and performance with the company’s mission, vision, and long-term objectives. In other words, it’s about making sure your workforce is driving the business forward.
How to Create An Effective People Strategy
Crafting an effective people strategy requires careful thought and consideration. Ideally, you’d want to put it together gradually after accounting for various factors and how they’ll impact your workforce.
A strong strategy helps your business stay adaptable and competitive by focusing on the people driving its growth. Here are some best practices to keep in mind:
- Motivate your employees: Create a culture where employees feel valued and excited about their work, as these are the ones who will stick around and deliver results in the long term.
- Conduct workforce analysis: Do an in-depth analysis of your workforce’s skills and identify gaps to ensure you’re prepared for future needs and challenges.
- Prioritize learning and development: Invest in continuous training and development to mold and retain the best talent, setting the organization in good stead for the future.
- Collect regular feedback: Frequently ask for employee input to address issues early and show that their voices are heard and valued.
- Always be tracking and changing: Continuously monitor performance metrics and adjust your strategy as needed to keep pace with changing business objectives and employee needs.
5 Steps To Creating A Powerful People Strategy
Crafting a people strategy that aligns your workforce with your business goals is crucial for long-term success. Here are five steps to follow to create an effective people strategy:
1. Collect data on your workforce
Start by gathering key data to understand your workforce better. Consider metrics like turnover rates, sick leave, and diversity factors such as gender balance and age distribution. Consistently evaluate the data to ensure reliable insights.
Include input from leadership through surveys or interviews to gain a full picture of your people’s needs. This data will help identify current challenges and set clear goals for improvement.
2. Emphasize learning and development
Recognize that different employees have different learning styles, so provide options that cater to individual needs. A strong people strategy should prioritize opportunities for learning and growth for all. Offer a range of development programs, such as coaching, upskilling, and any relevant learning opportunity beyond mandatory training.
3. Encourage a diverse and inclusive workplace
Learn to communicate and ask for feedback from your workforce. By doing this, you’re creating an environment where everyone feels included, respected, and supported. Additionally, be mindful of providing equal opportunities for all employees.
4. Align with business goals and purpose
For a people strategy to work, it must be closely tied to the company’s core priorities and purpose. When employees understand the broader business goals, they are more engaged and aligned with the company’s direction.
Once your priorities are set, communicate them clearly across the organization so everyone is on the same page.
5. Monitor progress and adapt
Your people strategy isn’t a one-time effort. After implementation, regularly track its progress to make sure you’re meeting your objectives. Be flexible and ready to make adjustments to stay aligned with your business’s and employee’s changing needs.
Examples Of Real-Life Applications Of People Strategy
1. Google
Google is known for its “20% time,” which allows employees to work on personal projects. This practice helps Google employees stay engaged with work and feel more satisfied with their job. It also encourages collaboration across different departments, fostering innovative ideas and creativity.
2. Netflix
Netflix follows its “Freedom and Responsibility” model, which empowers employees to make decisions without micromanagement as long as they’re accountable. This approach helps maintain a high-performance culture and has allowed Netflix to stay competitive in the entertainment industry while fostering an environment of trust and transparency.
3. Salesforce – Prioritizing Well-Being
Salesforce’s people strategy centers on employee well-being, with initiatives like wellness reimbursements and mental health support. Their “Ohana” culture is based on trust and equality. It fosters a supportive work environment by prioritizing employee well-being.
4. Microsoft – Growth Mindset
Microsoft’s people strategy centers on fostering a “growth mindset” to help leaders and employees embrace challenges, learn from failures, and pursue ongoing development. This approach encourages continuous learning and adaptability, allowing employees to view obstacles as opportunities for growth.
5. Spotify – People-first
Spotify fosters a “people-first” and purpose-driven culture that aligns with business goals. This approach is supported by four pillars: attracting the right talent, promoting diversity and inclusion, prioritizing continuous learning and development, and cultivating a growth mindset.
6. Unilever – Culture As Center
Twill’s people strategy integrates company values into daily operations, using a centralized platform to connect employee goals with business objectives. They prioritize a culture based on core values like ownership and empathy, embedding these through performance reviews and career planning.
7. Airbnb – Belonging and Inclusion
Airbnb’s people strategy aims to promote diversity and inclusion through employee resource groups (ERGs) and regular diversity training. The goal is to foster a workplace where all employees feel valued and included.
8. Nissan – “Kaizen” Philosophy
Calling back to its Japanese roots, Nissan’s people strategy is grounded in the Kaizen philosophy, which emphasizes continuous improvement by encouraging employees at all levels to contribute to process enhancements. This involves small, ongoing changes aimed at boosting productivity, safety, and quality while fostering a culture of discipline and accountability.
9. Patagonia – Environmental Alignment
Patagonia puts an emphasis on its environmental mission. As such, its people strategy encourages employees to engage in activism, with paid time off for environmental causes. The company also supports work-life balance with on-site childcare, flexible schedules, and other family-friendly policies.
10. Johnson & Johnson’s – Strong Leadership
Johnson & Johnson’s people strategy emphasizes strong, purpose-driven leadership guided by the company’s foundational “Our Credo” values, which prioritize the well-being of those they serve. To develop future leaders, J&J also invests in extensive Leadership Development Programs (LDPs) that are designed to cultivate a well-rounded skill set and align participants with the company’s mission of advancing health and positively impacting lives globally.
In Summary
A people strategy helps align your workforce with your company’s goals, which can set a strong foundation for its growth and success. When building a people strategy, make sure to consider factors such as employee engagement, continued learning and development, inclusivity, and communication. With a well-designed and implemented strategy, you can transform your workforce into a strategic asset to prop up your company for repeatable and continuous success. Need help creating a people strategy? Check out Organimi’s free trial for help organizing your team.