What is People Strategy?
People Strategy is the systematic approach that determines how you attract, keep, and grow your employees so you can do the best job possible for your company.
When it comes to defining your company's core principles, your employees are likely to play a significant role. Having a people strategy is one way to ensure that the business and HR goals of a firm are aligned.
People strategies have, as their primary goal, the alignment of businesses, HR departments, and employees. People strategies are designed to help employees reach their full potential. They also offer them help and provide educational tools.
A people strategy is critical for every company that wants to engage, develop, and retain employees- making them an integral component of the broader business strategy.
What is the difference between a People Strategy and an HR Strategy?
People strategy and HR strategy are often used together, but there is a big difference between them. A "people strategy" refers to how an organization thinks about its relationship with its employees, while an HR strategy is more like a plan for how to run a business.
Recruiting, hiring, training, evaluating, and paying employees are all part of the HR plan. A "people strategy" is a plan for how to make sure employees have the skills they need to do their jobs well, as well as how to keep them connected to the business. This puts the right people in the right place to achieve the company's goals.
How to Build a People Strategy
So, what constitutes a successful people strategy? It does not need to be a complete, detailed roadmap, but it should address all facets of the employer-employee relationship.
The idea is that it is broad enough to provide general counsel while still being detailed enough to be more than platitudes. A good approach might handle the following themes and/or tradeoffs:
1. Vision and data
Even if you already have a plan, it's best to acquire evidence to support it. This way, it's clear and actionable. The first step is to collect data. Quantitative data about gender diversity, attrition, sick days, and other things can help you build your dataset.
Then, look at qualitative data from the executive leadership team and the people who lead the teams (through structured interviews or surveys).
Compiling a range of historical patterns and looking into the future might enhance feedback. This might help you decide where to go and what skills to learn. A successful people strategy starts with an aspirational vision of leadership and the culture of your company. Then, be inspired by your data. Throughout this process, all evaluative methodologies must be kept consistent.
2. The number of employees
Is it preferable for the company to have ready labor capacity or to run leaner and only hire workers when there is a clear need? The following are key decision points: How long does it take to hire additional personnel, and how serious are capacity issues?
3. A compensation plan
Is it preferable for the company to keep compensation expenses to a bare minimum in order to support essential staffing, or would it rather be seen as more generous in the industry or community? The importance of compensation costs to the overall company strategy, the difficulty of recruiting within the industry, and the importance of compensation in the turnover plan are all key decisions.
4. Collect feedback and joy.
Strategic HR is frequently holistic HR, which means people must inform the workplace about the people strategy. Employee feedback is critical, and it should come from a variety of people in various roles and disciplines. Having non-HR eyes on any people strategy can assist in fostering a variety of thoughts. This will ensure your strategy makes sense and inspires others. Identifying sponsors or nominees for project groups may be part of this stage. So your people strategy has a better chance of succeeding. But it's not just about feedback. It's about getting feedback and including people in the overall approach. It builds buy-in across your organization. Simultaneously, it helps your final goal reflect everyone in the organization.
5. A plan to reduce turnover
Is the company willing to let turnover happen at its own pace, or will they go to great lengths to keep employees who are planning to leave, or will they actively look for and stop people from leaving?
The following are crucial decision points:
- How difficult is it to recruit replacement workers?
- How critical are vacancies when they arise?
- And how effective are non-monetary techniques for retaining endangered employees?
6. Visualize and Disseminate
Create something visual to share your plans with the rest of the company. Engaging visuals can educate the rest of the company on how work is thought about. This can include discussing both fundamental work and future goals.
7. Observe and Modify
Of course, a people strategy isn't a one-time plan. It is something that can change and should be monitored. In this approach, it's crucial to monitor the overall plan to verify that it's working and doesn't need changing. Changes necessitate adjustment!
How can you support your people strategy with employee experience?
Giving employees the skills, resources, and environment they need to grow empowers them. Employees who feel supported by their bosses and company policies are more likely to grow in areas that support corporate goals. Engaged employees not only meet expectations but help shape them. Good people strategies realize that firms and employees have a mutual relationship and foster a productive work environment for everyone.
Bottom Line: How Sorwe can Help
Today more than ever, employees need their employers and leaders to be empathetic, understand their unique challenges, and appreciate the diversity of their experiences. Sorwe can help forward-thinking leaders in the workplace to do precisely that.
Book a demo today and discover how to develop a lasting people strategy that fits your organisation, giving you an overview of what people really need, beyond recognition programs and employee surveys.