In an era of rapid change and fierce competition, organizations can no longer afford to view their people as simply a resource to manage. Today, companies must recognize the strategic value of their workforce as a core driver of business success.
A well-defined people strategy helps organizations build a strong culture, attract top talent, and drive performance in alignment with overall business objectives.
In this post, we will explore what people strategy is, how to develop it, and how it differs from HR strategy. We will also look at examples from leading companies that have successfully implemented People Strategies and discuss how the Top Employer Institute program can help your organization elevate its People Strategy and become an Employer of Choice.
What is a People Strategy?
A people strategy is a comprehensive plan that ensures an organization’s workforce is aligned with its business goals and priorities. At its core, it’s designed to create a high-performance culture, where the right people are in the right roles, equipped with the necessary skills, and motivated to contribute to the company’s long-term success.
A people strategy takes into account broader organizational needs and focuses on nurturing a sustainable talent pipeline that will drive future success.
It aims to create a high-performing culture, foster employee engagement, drive leadership development, and ensure the workforce is equipped to meet future challenges.
People strategy today: what does it mean for HR leaders?
Today, leading organisations across the globe are forced to transform rapidly – and continuously – in order to remain purposeful, relevant and stay ahead of competition. This in turn means that the very definition of people strategy is itself evolving at pace. The role of HR leaders is changing too, and the number of challenges they are asked to solve is increasing.
As you need to focus on your people, it’s key to gather employee insights: by understanding needs, motivations, and preferences of your workforce you better shape policies that improve the employee experience. And, consequently, contribute to higher levels of engagement and retention.
People Strategy vs. HR Strategy: What’s the Difference?
HR strategy and people strategy are often used interchangeably, although they represent different approaches to managing human capital within an organization.
While, as we have seen above, a people strategy is more holistic an HR Strategy focuses on the tactical aspects of managing employees.
It deals with the functional tasks related to human resources, such as recruitment, compensation and benefits, performance management, compliance, and training.
How to develop a people strategy: key steps
Developing a successful people strategy requires careful planning, collaboration, and a deep understanding of both business needs and employee aspirations.
Here’s a step-by-step guide on how to develop a People Strategy that delivers value to both the workforce and the organization:
1. Understand Your Business Goals
The first step in developing a People Strategy is to clearly understand the long-term goals of the organization. Whether you’re expanding into new markets, launching a new product line, or striving to improve operational efficiency, your people strategy should align with these goals.
For example, sur research shows that 97% Top Employers demonstrate the importance of aligning their people strategy with their business strategy. Yet it is worth noting that only 77% of Top Employers translate their people strategy into key HR metrics and related targets.
2. Analyze Current Workforce Capabilities
Assess the current skill sets, experience, and potential of your workforce. This will help identify any gaps between the existing talent pool and the skills required to achieve the company’s strategic objectives. By conducting talent audits, employee surveys like stay interviews), and performance assessments you will effectively understand what your workforce can offer and where development is needed.
And how can we not mention artificial intelligence? With AI tools for talent acquisition, organizations can streamline the process of identifying, assessing, and recruiting candidates with the right skills. AI can enhance the recruitment process, helping companies attract the best talent faster and more efficiently while minimizing bias.
3. Create a Talent Acquisition Plan
The foundation of any people strategy is indeed attracting the right talent. This involves not only recruiting for current roles but also planning for future needs. Companies like Amazon have made headlines for their innovative talent acquisition strategies, including programs aimed at hiring from underrepresented groups and offering upskilling opportunities for current employees to fill high-demand roles.
In today’s war for talent, organizations must differentiate themselves to attract and retain top candidates. Leveraging ai for talent acquisition can significantly enhance this process, allowing HR teams to focus on the most promising candidates and streamline hiring.
4. Develop Leadership and Talent Management Programs
Leaders and high-level managers are not excluded by your workforce. In fact, strong leadership development and succession planning initiatives are a key component of your strategy. Investing in leadership training ensures that the organization is prepared for future challenges. Companies like IBM are known for their leadership development programs, which include mentorship, continuous learning, and hands-on leadership opportunities for emerging talent.
In addition, organizations must continuously gather employee insights to better understand how employees view leadership, what skills they want to develop, and how they perceive the company’s future. This helps tailor leadership development efforts to actual needs and ensures leadership programs are effective and impactful.
5. Foster a Culture of Engagement and Well-Being
Employee engagement and well-being are at the heart of a successful People Strategy. This involves creating an environment where employees feel valued, connected, and motivated to contribute. For example, Salesforce has made a name for itself with its “Ohana” culture, which emphasizes inclusivity, community, and well-being. Initiatives like flexible work arrangements, wellness programs, and employee resource groups are key aspects of such a strategy.
Digital employee experience platforms are increasingly used by companies to enhance employee engagement. These platforms enable real-time feedback, streamline communication, and offer personalized resources for learning and development. By investing in the digital employee experience, companies can improve overall engagement and foster a more inclusive, connected, and productive work environment.
6. Measure Success and Adjust
A strategy can never be successful without the “measure and adjust” work. Therefore, you need to regularly assess the effectiveness of your strategy through employee feedback, performance metrics, and business outcomes. This allows you to make adjustments as needed and ensure continuous improvement. Many companies use tools like the Gallup Engagement Survey or employee Net Promoter Scores (eNPS) to gather valuable insights and track employee satisfaction.
Real-World Examples of Companies with Exceptional People Strategies
Some of the world’s leading companies are great examples of how a well-crafted people strategy can drive success. As we have quickly mentioned some of these examples above, it’s now time to take a closer look at a few:
- Google: Google’s people strategy is built on innovation, diversity and inclusion, and employee empowerment. The company offers extensive professional development opportunities, flexible working arrangements, and a culture that encourages creativity and collaboration. By focusing on employee well-being and continuous learning, Google ensures that its talent stays motivated and engaged.
- Salesforce: Salesforce places a strong emphasis on its Ohana culture, where employees are viewed as part of a family. Through initiatives like well-being programs, paid volunteer time, and inclusivity initiatives, Salesforce creates a workplace where employees feel valued, supported, and connected.
- Amazon: Amazon’s approach to People Strategy is centered on agility and growth. Through its comprehensive upskilling programs and focus on employee development, Amazon has been able to remain competitive while fostering a culture of continuous improvement and innovation.
Become an Employer of Choice with Top Employer Institute and elevate your people strategy
As we reach the end of our discussion, it’s clear that having a well-crafted people strategy is crucial for organizations looking to thrive in today’s competitive landscape.
A strong People Strategy not only addresses the war for talent but also drives engagement, retention, and long-term business success. By aligning your workforce with business goals and continuously evolving your approach to talent management, your company can stay ahead in an ever-changing world.
Through the Top Employer Institute program, companies can elevate their people strategy, enhance their employer brand, and attract the best talent in the market.
By participating in this program, you gain access to a wealth of resources, best practices, and insights that will help you create a more engaged, motivated, and productive workforce.
Whether you’re looking to improve the employee experience, enhance talent acquisition through AI, or develop leadership capabilities, the Top Employer Institute can help you build a people strategy that aligns with your business goals.
Invest in your people today: become an employer of choice today.