What is people management?

Modern organizations bring together team members who span generations, work across time zones, and operate in hybrid or fully remote environments. Managers are expected to align these moving parts, drive productivity, and create a positive team culture—all while meeting business goals. It’s a tall order, and sometimes your managers may wonder where to start. According to McKinsey, only 20 percent of managers feel their organization helps them succeed in managing their team. 

Effective leadership goes beyond delegating tasks or tracking performance. It’s about understanding the unique needs of each team member, building trust, and creating an environment where people feel valued. That’s where the principles of people management come into play. This approach equips managers with strategies to engage their teams, resolve conflicts, and encourage professional growth. 

Mastering people management means organizations can empower their managers to lead with confidence and create workplaces that thrive. This article will cover best practices, the critical skills managers need, and how technology can streamline and enhance people management across your organization.

What is people management?

People management refers to the practice of recruiting, training, engaging, and retaining people to optimize their talent and maximize their productivity. A subcategory of human resource management (HRM), people management includes:

• Training and development
• Recruitment
• Compensation and benefits
• Performance management
• Organization
• Engagement and retention
• Safety and wellness

People management strategies address people’s needs, unique talents, and career objectives while supporting their alignment with company goals and values.

Why should HR leaders care about people management?

HR leaders and managers have people management skills to communicate, inspire, and direct talent effectively. Successful people management practices help motivate people to work productively and passionately, leading to increased engagement and retention.

Tips and best practices for effective people management

Effective people management demands that HR leaders embody several essential work habits. Here are eight core practices HR leaders can incorporate to promote successful people management:

Lead by example

By demonstrating a high level of emotional intelligence, HR leaders can set the tone for a productive and dynamic work environment. Exemplifying essential characteristics such as empathy and resilience at work shows people how they should aim to behave in the workplace. 

Gauge team members’ personalities

Knowing and understanding each person’s unique personality and motivations enables managers to connect with people on a personal level and strategically maximize their work potential. HR coach Katherine Giacalone emphasizes the importance of identifying and mentally categorizing each person’s personality for effective management.

Communicate respectfully

Clear and considerate communication is the foundation of any type of successful relationship. Encouraging people and managers to practice active listening builds trust and healthy interpersonal connections, which promote a positive culture and foster productivity. Furthermore, active listening can help managers acquire valuable, constructive feedback to improve the employee experience.

Promote proactive conflict resolution 

Approaching conflict with respect for the individuals involved allows managers to resolve challenging situations with integrity. Instead of passively letting a conflict spiral out of control, managers can empathetically approach people, ultimately strengthening interpersonal relationships and elevating the work community.

Offer development opportunities for managers

HR leaders can help managers develop their skills by providing development training. They can also team up with finance team leaders to introduce budgets that enable managers to take certification and knowledge courses. HR leaders can also offer mentorship programs that provide a framework for managers to learn one-on-one with internal or external management coaches.

Create a strong team

Building a high-performing team starts with recruiting diverse people who bring complementary skills. This diversity allows team members to learn from each other, leverage strengths, and collaborate effectively to address challenges.

Help your team succeed by aligning them around shared objectives and fostering strong relationships. Regular team-building activities encourage connection on a personal level while promoting collaboration toward non-work-related goals. These activities strengthen bonds and build trust within the organization.

Set clear goals and expectations 

Effective managers establish clear goals and communicate them to their teams, showing how individual efforts contribute to project or organizational success. They ensure alignment by holding meetings to discuss strategies, assign responsibilities, and gather feedback. 

People managers can use the SMART model to set realistic goals that are specific, measurable, achievable, realistic, and time-bound. Defining goals with clear metrics ensures accountability and helps break tasks into manageable steps.

Deliver constructive feedback with care

Constructive feedback motivates people. Zippia’s research reveals that 85 percent of people say they take more initiative to improve their performance when they receive feedback. Great managers are tactful yet direct and can give team members honest feedback on their performance without being demoralizing. 

People managers identify team members’ strengths and weaknesses and note areas where they need to improve. You can give constructive feedback by first highlighting your people’s strengths and achievements and then following up with what they can do better, presenting those as areas for growth and career advancement rather than failures. 

<<Discover how exceptional HCM software boosts people management.>>

What are some key people management skills?

To excel in people management, HR leaders must cultivate the following abilities:

Empathy 

If there is a number one must-have skill for people management, it’s empathy. The ability to put yourself in others’ shoes and feel what they are feeling will make talent feel more heard and recognized. It will also improve HR decision-making and communication, helping create a better experience for people. 

Leadership 

Successfully managing others requires a range of abilities under the umbrella of leadership skills, including trust-building, motivating, conflict resolution, and empowerment. People managers can inspire people through effective leadership, guide teams to achieve a common goal, and provide support for people to reach their full potential. 

Organization and analytical thinking 

While much of people management requires applying soft skills, the modern organization requires HR professionals to employ an equal measure of analysis and data savviness. HR technology has become a crucial part of people management. Tech literacy and data analysis are now essential competencies for modern HR professionals.

Communication and active listening 

Setting goals, providing constructive feedback, and fostering trust becomes challenging without clear communication. Poor communication impacts team wellbeing and productivity, while strong communication inspires and motivates people to achieve goals.

Active listening can show team members that their input matters. For instance, if people express a need for development opportunities and you respond with tailored training programs, it demonstrates you value their feedback. Combining effective communication with active listening builds trust and strengthens personal connections with your team.

Creativity 

Managing people requires a balance of hard skills and creativity. Thinking creatively helps managers address challenges, personalize their approach for individuals, and adapt to organizational changes.

Leading by example can inspire creativity in your team. For instance, if your team struggles with problem-solving, you could introduce hackathons instead of traditional training sessions, encouraging innovative thinking. When you explore unconventional solutions, you empower your people to think outside the box.

Collaboration 

Collaboration is a key skill for people managers, whether you’re working with leadership on company-wide initiatives or supporting your team on specific projects. Effective collaboration helps you understand team strengths, delegate tasks effectively, solve challenges, and maximize productivity.

Engaging team members in collaborative decision-making aligns them with company goals and motivates them to contribute. It also fosters trust, openness, and transparency, creating a more cohesive and engaged workforce.

How to develop your people management skills

Building skills requires significant time and effort, but with them, you’ll be an excellent people manager who inspires your people to be better. Here’s how you can develop your skill set:

1. Learn from others 

Watch how other people managers or leaders in the organization manage their roles and responsibilities. Take note of how they interact with team members, resolve conflict, communicate, set goals, and motivate people. 

Observational learning strengthens skills by watching others, retaining information, and applying what you learn. Job shadowing and asking questions can further deepen your understanding of others’ processes.

2. Conduct a 360 performance review

360 performance reviews will give you a comprehensive view of your strengths and weaknesses. Gathering feedback from team members and managers helps identify common themes and provide actionable insights. Regularly addressing areas of improvement demonstrates your commitment to growth and builds trust and respect among your team.

<<Download these free performance review templates to access great peer-to-peer reviews.>>

3. Take coaching or leadership courses 

A coaching or leadership course will help you develop skills in supporting and guiding people towards achieving their goals. You’ll learn effective communication techniques, leadership styles, and coaching methodologies to foster growth among people. Take advantage of coaching or leadership courses your organization offers or enroll in free certificate courses on learning platforms like Coursera, Udemy, and edX.  

4. Find a mentor  

Mentorship offers valuable guidance from experienced professionals who can help you solve challenges and identify skills to strengthen. Identify people management leaders within your organization who inspire you and ask them to mentor you. You can also connect with mentors outside your company through career development programs or directly through LinkedIn. 

5. Encourage personal wellbeing

Your wellbeing directly impacts how you interact with your team. Feeling overwhelmed can make it harder to communicate effectively, show empathy, and stay patient—all of which can influence your team’s morale, productivity, and engagement.

Prioritizing your own wellbeing and taking time to recharge sets a positive example for your team. Demonstrating balance and self-care encourages your people to do the same, fostering better team wellbeing and stronger performance.

How can you leverage HR tech to improve people management?

HR technology can significantly improve an organization’s people management by optimizing, streamlining, and automating most, if not all, of the tasks involved. HRIS systems and employee management software come with features for everything from team member onboarding and performance management to people appreciation and general administration, offering numerous benefits, including:

• Collecting and analyzing data to help track KPIs and find insights
• Automating repetitive tasks to save time
• Freeing up HR pros’ bandwidth for more strategic, bigger-picture thinking
• Optimizing workflows to reduce errors and inefficiencies
• Streamlining Human Resource Planning

<<Discover how exceptional HCM software boosts people management.>>

How effective people management improves company culture

Investing in talent through intentional people management practices empowers them to give back to their company with high-performance work. Strategic and careful people management can encourage progress, positive team member experiences, and growth, enabling a thriving company culture.

People management FAQs

Are people management and HR the same?

People management and HR are both human resource management (HRM) roles, but they are not the same. People management embraces a proactive and empathetic approach to managing team members, and the primary goal of people managers is to keep their people happy. The role focuses on improving people’s engagement, productivity, and well-being and how each of these things helps improve the organization’s growth. 

HR can be more reactive and transactional. It focuses on HR operations and HR functions such as keeping team member records, managing and processing payroll, enforcing company policies, and ensuring labor law compliance. 

It can be common for people managers and HR managers to have intersecting roles, and they may work together to ensure team members’ satisfaction and achievement of company goals. 

What is the role of a people manager?

People managers prioritize the organization’s overall people experience and ensure team members feel valued, supported, and empowered in their roles. Some of the key responsibilities of people managers include:

• Implementing learning and development programs 
• Tracking and managing team member performance 
• Resolving conflict between people and building a positive work environment 
• Implementing initiatives to improve team members’ engagement, productivity, and retention
• Managing compensation and employee benefits 
• Recruiting new joiners 
• Ensuring team member’s safety and wellness

The result of these responsibilities is alignment between team members and the company’s mission and values, building a culture of trust, transparency, and collaboration. 

What is a people management KPI?

A people management key performance indicator (KPI) refers to talent management metrics people management teams use to set goals. They also use KPIs to track progress and measure the impact of their work on the organization and its people over a specific period. 

Common people management KPIs include: 

• Employee net promoter score (eNPS): eNPS checks how many people would recommend the company as a great place to work. Getting high ratings from team members can be an indicator of effective people management. 

• Team member productivity: This KPI measures the efficiency of team members so people managers can implement initiatives to boost productivity.

• Absenteeism: Frequent absences can be a sign team members aren’t happy. People managers monitor absenteeism to track their people’s happiness and job satisfaction. 

• Retention rates: Low retention rates also indicate something may be wrong. Retention rates serve as an important KPI for people managers, whose goals center on keeping team members happy so they stay with the organization.
• 90-day quit rate: This KPI measures the number of people who quit within the first 90 days of starting a new role. People managers use this to measure whether the onboarding process needs adjustment.