What is People Management?

Key takeaways

• People management involves recruiting, training, and supporting employees to help them succeed in their roles and contribute to company goals.

• Strong people management boosts productivity, reduces turnover, and creates better workplace culture, directly impacting business success.

• You can improve your people management skills by practicing active listening, learning conflict resolution techniques, and seeking feedback from your team members regularly.

To better understand what people management is and how to excel in this area, explore its key components, challenges, and strategies in the following article. If you're ready to start strengthening your people management capabilities today, consider learning from an industry leader with Google's People Management Essentials Specialization. In as little as eight hours, you could master core competencies like relationship management, constructive feedback, and SMART goals.

What is people management?

People management refers to the day-to-day management of employees, including their recruitment, training, performance, and engagement. Essentially, people management aims to create the most effective workforce for your company. You want to keep your employees happy, help them develop the skills they need to succeed at the job, and provide an environment that encourages them to stay at the company. 

As a manager, you might have people management responsibilities related to your employees or teams specifically. This involves the way you build connections with your employees and how you deliver balanced feedback. With this type of role, you focus on the well-being of your employees and how you can best support them in their roles and career progression. If you work in the human resources (HR) department, you might collaborate with team managers to manage team dynamics, recruit new talent, develop training, design compensation packets, and manage conflict resolution efforts.

Why is people management important?

People management is important as it directly influences the success of your employees and, consequently, the success of your organization. While it’s easy to focus on organizational performance metrics, like sales or profits, your employees contribute to the business and drive its growth and success. Effective people management ensures employees feel valued, motivated, and connected to their work, which leads to higher productivity, greater retention, and a healthier workplace culture.

A well-managed team is more likely to innovate and collaborate effectively, while poor management can increase turnover and decrease morale. When you invest in strong people management practices, you can cultivate a productive workforce committed to the company’s overarching goals.

Potential challenges of people management

While challenging at times, managing people can also bring growth opportunities. A typical people management challenge includes navigating big personalities within a team and diverse work styles. By addressing potential issues proactively, you can create a supportive work environment and prevent misunderstandings from escalating. 

For example, you might engage employees in a brainstorming session to collectively find solutions. You could cultivate a culture of learning rather than consequences for mistakes. Moreover, work with your employees individually to ensure you hear their perspectives and help them feel seen.

In addition to this, as a manager, you might be responsible (at least in part) for recognizing your employees' burnout and helping address any workplace issues proactively. That being said, managers often have a high workload and may sometimes feel spread thin. When you’re feeling burnt out yourself, it can be difficult to recognize and address these signs in others. Remember to prioritize your well-being, too, so you can work more effectively with your team and show up as your best every day.

Types of people management tasks

People management takes several forms. Some facets may be delegated to team managers, while others might be assigned to HR departments. However, each component fits together to create employee workplace experiences. Areas of people management include everything from recruitment to compensation and benefits. Consider each area and what it entails.

Recruitment

The recruitment process identifies candidates for roles within an organization. In recruitment, your role is to attract and hire the right talent, ensuring your organization’s team has the optimal skill mix for success. This involves understanding current production levels, company needs forecasting, the budget for each position, and how to implement the best recruitment strategy for the position.

Onboarding

After hiring a new employee, the next step is onboarding. This involves introducing the new employee to the organization and ensuring they have the training and resources to succeed. 

For example, if everyone at your organization uses a specific system to log their hours each week, onboarding programs should show employees how to do this and help them seamlessly integrate into the environment. 

Training and development

Training and development are important for all employees, even managers. Training and development opportunities can help employees advance their skills and perform better in their current roles or advance to positions with more responsibilities. For managers, training opportunities can help them become better leaders by introducing new strategies to bring out the best in their teams.

Performance management

Performance management is a way to assess current employee performance and identify areas of improvement early. When doing this, focus on an approach that encourages employees and creates forward momentum. 

You can do this through ongoing, casual check-ins throughout the year. This fosters trust and helps you to rectify any issues promptly. You can additionally implement agile performance systems that update current role requirements and workflow. This simplifies the process so employees clearly understand the feedback you’re giving.

Employee engagement

Employee engagement involves building a positive work culture where employees feel connected to the company and motivated to perform well. You can do this by employing strategies to make the work less stressful, such as offering employees autonomy and flexibility and connecting the work to a larger organizational mission that employees care about. Engaged employees tend to perform better, stay at their organizations longer, and report more satisfaction with their jobs.

Compensation and benefits 

The compensation and benefits of a position include the monetary and non-monetary rewards from an employer. This includes monetary pay, such as an annual salary, plus any perks like fitness reimbursements, annual bonuses, parental leave, stock options, company trips, and health insurance. 

Benefits can be a key motivator for employees to accept and stay in their positions, and it’s important to consider factors that make roles especially appealing to your workforce. For example, if the majority of your employees have children, offering social benefits such as parental leave or childcare reimbursement may be especially valued.

Tips for effective people management

Becoming a talented people manager takes time and effort and can significantly impact your organization. When honing these skills, consider the following tips to engage with your team and build a positive atmosphere.

• Learn each team member’s personality. Know who you are working with—and how each member approaches projects or conflicts—to help you engage meaningfully and constructively with your team.

• Leverage team strengths. On your projects, take advantage of each team member’s skills and strengths, leveraging their toolkit in a way that complements other team members’ skills. This helps build more effective teams where everyone feels valued and impactful.

• Empower your employees. When you genuinely care about your employee’s success, it shows. You can empower your employees by encouraging them to build skills, providing additional training opportunities, showing patience and adaptability, and supporting them during difficult projects.

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