How to create a successful people strategy to drive business growth 

When growth is the goal, it is vital to have the right foundations in place to sustain it. And as people are critical to the success of any business, adopting a people-centric strategy is key. In this article, we explore how to create a successful people strategy designed to drive business growth, while supporting the people in your organisation to enhance performance, productivity and wellbeing. 

In the competitive landscape of today’s business world, businesses regularly find themselves grappling with limited resources, tight budgets, and fierce competition. In order to thrive in this environment, a well-crafted people strategy at the heart of your business can be the key differentiator in sustaining growth.  

The benefits of a well-planned people strategy 

There are countless benefits of a great people strategy. Here are just a few: 

The right people in the right seats to support ongoing growth

Free up senior leadership time to focus on the business bigger picture, rather than being busy working in the business day to day 

Clarity on operational and transformational goals and processes 

Effective training, coaching and mentorship plans in place for both personal and professional development

Attract the best people to your organisation and retain them for longer

Drive performance and productivity through better employee engagement 

Strategic alignment with the business agenda to ensure everyone is pulling in the same direction 

Regulatory compliance and support 

A clear roadmap for the future of your business 

A people strategy spans many areas, from talent attraction and retention to succession planning, supporting the wellbeing and development of your teams and overarching organisational structure. It includes your corporate stance on Environmental, Social and Governance (ESG) as well as employee engagement, performance and much, much more.  

With so many variables to consider, how do you get started? 

Develop clear understanding of where you are now, and where you are going 

Gaining a clear picture of where you are at currently and where you want to go is a crucial first step. Without a clear vision and well-defined goals, it is impossible to put together an effective plan. A thorough assessment of what is working well versus what needs improving is needed at this point, as well as a temperature check of company culture and employee engagement. 

Once you have agreed the end goals it is time to design your strategy: your roadmap for growth. It is within this strategic planning stage that it is so important to align the business goals with your people plan, as the two are inextricably linked. 

Critically, when designing a people strategy to drive business growth it is important to consider the future requirements of the business, not just those of the current moment. That includes your resourcing and recruitment approach, training and development needs, and of course, succession planning. 

10 steps to a successful, people-focused growth strategy 

1. Define your vision, your goals and your business values and keep this front of mind when developing your people strategy 
2. Identify your barriers to growth and ways to address them 
3. Map the roles, skills and competencies your business needs now and will need in the future 
4. Foster a positive workplace culture and employee value proposition which provides a fair, safe and equitable environment for all 
5. Invest in employee training, development and wellbeing so that your leaders are equipped to lead, your managers are equipped to manage effectively, and everyone feels a sense of personal and collaborative accountability for performance and wellbeing 
6. Develop your reward and recognition framework to motivate and engage your people 
7. Adopt sustainable business practices within your chosen ESG plan  
8. Embed great communication culture, which underpins engagement, feedback, performance management, motivation and stakeholder management, to name but a few 
9. Plan, review, do. Build evaluation into your everyday practices to ensure a culture of continuous improvement 
10. Be open to change. A people strategy is not static, just as business strategy is not static. You need to monitor and respond to external factors and have the leadership and operational agility to pivot when needed.  

A people strategy is not just about hiring the right talent; it encompasses all aspects of managing and developing your workforce to align with your business goals. Your people are your most valuable asset: they drive innovation, deliver customer experiences, and execute strategies. An effective people strategy can help you maximize their potential, ensuring that every team member contributes to your business’s growth and success, as well as the collective wellbeing and fulfilment of the whole team. Be under no illusion: a well-thought-out people strategy is a necessity for SMEs aiming to thrive and grow in a competitive market, not a luxury. It empowers your workforce, aligns them with your business goals, and ultimately drives the success of your company.

If you would like to ensure your roadmap for growth has a clear path to your business success goals over the next 3-5 years, and you would like to find out more about how  part-time People Director can help, call 0345 646 5201 or email [email protected]