Skip to main content

Understanding People Management & Why It’s Important for Your Business

03 May 2024
A diverse group of individuals gathered around a table engaged in a team exercise.

Many people who are promoted to a people management role find themselves in this position because they have been proven to be a subject matter expert and successful in a single contributor role.

The expectation is that they will immediately be successful in managing people, even though the skill sets required often bear little or no resemblance to those required as a single contributor. When you also consider that they will most retain most, if not all of their previous role, it is easy to see why many new people managers struggle with the transition.

If you are considering taking on a management role or you are on the cusp of being promoted, you may well be forgiven for asking yourself what you are letting yourself in for. Let’s start by looking at what people management is and the activities it entails.

What is people management?

People management, is a sub-level of “human resource management” (HRM) or “personnel management”, can be defined as the process of overseeing, organising, and coordinating the activities and interactions of individuals within an organisation to achieve its goals effectively and efficiently.

People management encompasses a wide spectrum of activities aimed at optimising the performance, engagement, and wellbeing of employees within your organisation.

To summarise, typical people management activities include:

  • Recruitment and onboarding - Attracting top talent and integrating them seamlessly into the company culture.
  • Performance management - Providing feedback, setting goals, and facilitating growth opportunities.
  • Employee training & development - Investing in training and fostering personal and professional growth.
  • Retention strategies - Nurturing a supportive environment to retain valuable team members.
  • Communication and feedback - Establishing open channels for dialogue and constructive feedback.
  • Safety and wellbeing initiatives - Prioritising employee health, satisfaction, safety and work-life balance.

Why is Effective People Management Important?

People managers play a fundamental role in communicating, inspiring, and directing talent effectively. Successful managers help motivate people to work productively and passionately, leading to increased engagement and retention.

It is also worth considering that people managers play a crucial role in communicating upwards to senior leadership teams, as well as communicating key strategies and objectives to the staff within their team.

There are some compelling stats which highlight the importance effective people management plays in creating a thriving and enjoyable workplace:

  • Just 9% of UK workers reported feeling enthused by their work and workplace in 2023. (Source: Let’s talk Talent)
  • Globally, just 21% of employees are engaged at work and 33% are “thriving in their overall wellbeing” Personnel Today
  • Business units with engaged workers have 23% higher profit than those with workers who felt “miserable”. Personnel Today
  • 28% of companies said the best approach to tackling the current labour shortage crisis is to focus on improving company culture. HR News

Key People Management Skills:

It is essential for any successful people manager to be their authentic self, not losing sight of the qualities that enabled them to be a people manager in the first place. There are however some fundamental skills, all of which can be learned and honed. Here are just a few:

Ethics and Integrity

Trust and respect are imperative for a team to thrive under a people manager. Traits such as honesty, accountability and transparency all contribute to building trust and respect as the people manager is being seen to be doing the ‘right thing’. It is worth noting that the right thing is not always the easiest or most popular option.

Emotional intelligence

The ability to understand and empathise with people’s needs and concerns will improve decision making and communication. Understanding requires listening skills, not simply nodding in the right places and making vague active listening noises.

Respectful Communication

Communication is a broad term but, in this instance, it covers both written and verbal communication skills. Examples include facilitating feedback, articulating objectives and expectations, delegating, writing up performance reviews and empowering others to think for themselves.

Being organised

Juggling the day job with people management responsibilities is rarely easy, especially where the people manager is the most obvious first point of contact and meetings or emails compete for your attention. The ability to identify tasks that are proactive and ‘keep the boat moving’ is essential, as is the ability to schedule in time for your team.

Adaptability

Embracing change and guiding teams through transitions effectively, whilst leaving emotion at the door can be challenging at the best of times. Every person is different and responds to change in different ways which is where the emotional intelligence and communication skills come into their own as helpful tools.

Not only will these skills help you to become a better people manager, but they will also assist you in creating and improving a people management culture.

Tips to improve your organisation’s people management culture

Tangible evidence of a people management culture being in place include:

Employee wellbeing is prioritised through initiatives such as flexible work arrangements and wellness programs.

Ongoing Investment in training and development opportunities to nurture growth and skill enhancement. This can be arranged through formal learning initiatives, lunch and learn events or a library of resources including books, podcasts and videos to encourage self-ownership when it comes to learning.

People are recognised and feel rewarded, reinforcing positive behaviours and boosting morale. Appropriate remuneration schemes are clearly key to this but don’t underestimate the impact of authentic feedback when it comes to making somebody feel valued.

Common people management mistakes to avoid:

When we embark upon a new adventure or hobby with plenty of energy and enthusiasm, it is easy to fall into some predictable traps and make some avoidable mistakes. People Management is no different so here are a few key ones to look out for and avoid:

Allowing small niggles or blips to develop into something bigger.

Think poor time keeping, missed deadlines, creative interpretation of dress codes… you get the gist! Nipping these in the bud early will avoid escalation, save you time and create clarity on standards and expectations.

Ignoring signs of burnout or mental health issues.

Risking employee wellbeing and productivity. To be clear, this begins with you as you will be unable to lead a team of people successfully if you are not looking after yourself.

Solving problems as opposed to getting problems solved.

Your role is to empower your team to think for themselves and be brave in decision making. A simple way of assessing this is to compare how many times your team approaches you with problems, compared to how often they approach you with an idea or solution that they would like to run past you.

Holding on to legacy tasks.

It is never easy to let go of tasks that you have enjoyed and developed over the years but the sooner you can learn how to delegate and empower others, the easier it will be to transition and take on your new roles and responsibilities.

Attempting to go it alone.

Asking for help is a sign of strength, not a sign of weakness. Seeking a coach or mentor that can act as a sounding board may just be one of the smartest things you do, especially in the early months of people management.

Micromanaging

It often comes from a good place but hovering over peoples’ shoulders and excessively controlling their tasks can stifle creativity, erode trust and hinder their professional growth. Instead, focus on setting clear expectations and providing the necessary resources and support.

Are you looking to take the first step into people management or hone and improve your existing skills?

At Donovan Training Associates, we’re committed to providing relevant and practical training to improve your people management skills. Our online leadership management courses serve as a great additional tool that is easily accessible; contact us today for more information and a friendly, no obligation consultation.

To find out more or to book a free consultation: