{"id":13883,"date":"2023-04-05T10:00:00","date_gmt":"2023-04-05T09:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-ie\/blog\/?p=13883"},"modified":"2025-05-07T15:07:45","modified_gmt":"2025-05-07T14:07:45","slug":"create-people-strategy-less-reactive","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ie\/blog\/create-people-strategy-less-reactive\/","title":{"rendered":"How to create a people strategy and be less reactive"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ie\/blog\/category\/people-leadership\/\" class=\"entry-header__link\">People &amp; Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to create a people strategy and be less reactive\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-04-05T10:00:00+01:00\">5 April, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to create a people strategy and be less reactive\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ie\/blog\/create-people-strategy-less-reactive\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ie\/blog\/author\/timcooper\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/tim-cooper.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Tim Cooper<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">The causes of most significant business problems will most often relate to people. <\/p>\n\n\n\n<p class=\"\">For example, if you ask your staff why growth is slow, they might say: \u201cWe don\u2019t understand the strategy or the plan. We don\u2019t understand our roles or how they relate to those of our colleagues.\u201d<\/p>\n\n\n\n<p class=\"\">Your people strategy is critical to solving such issues. <\/p>\n\n\n\n<p class=\"\">Rather than reacting to problems with staff, a people strategy proactively aligns your people with the company\u2019s vision. It shows them what that looks like through short and long-term plans. And it shows them specifically how their roles contribute.<\/p>\n\n\n\n<p class=\"\">In this way, a successful people plan is essential for boosting recruitment, retention and performance \u2013 and ultimately ensuring your future success.<\/p>\n\n\n\n<p class=\"\">In this article, we talk about how to create and deliver a people strategy for your business.<\/p>\n\n\n\n<p class=\"\">Here\u2019s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#problems\">Problems with reactive people management<\/a><\/li>\n\n\n\n<li><a href=\"#what\">What is a people strategy?<\/a><\/li>\n\n\n\n<li><a href=\"#how\">How people strategies benefit employees and businesses<\/a><\/li>\n\n\n\n<li><a href=\"#hr\">How HR technology can help<\/a><\/li>\n\n\n\n<li><a href=\"#to\">How to create and deliver a people strategy<\/a><\/li>\n\n\n\n<li><a href=\"#creating\">Creating a blueprint for people success<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-78bb5fd1-148d-455b-82f8-e8195a056d03\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-78bb5fd1-148d-455b-82f8-e8195a056d03\"\n\t>Download your free copy of How to attract, engage and keep great people to help you build your team so your business can thrive<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"problems\">Problems with reactive people management<\/h2>\n\n\n\n<p class=\"\">Ireland is suffering a huge skills shortage fuelled by a dramatic spike in vacancies following the pandemic. <\/p>\n\n\n\n<p class=\"\">But, with runaway inflation in the cost of goods and wages, simply paying people more to boost recruitment and retention is not always helpful or possible.<\/p>\n\n\n\n<p class=\"\">A reactive stance to these challenges will likely lead you into a raft of longer-term problems. Unable to attract the right staff, you\u2019ll be challenged to operate your business effectively, let alone grow and develop.<\/p>\n\n\n\n<p class=\"\">Martin Brown, CEO of business growth adviser Elephants Child, says: \u201cWe\u2019ve had clients offer 10 people jobs but only six showed up because, in the space of a week, they\u2019ve received a better offer.<\/p>\n\n\n\n<p class=\"\">\u201cIf existing personnel see colleagues leaving for greater freedom or salary, they will also get twitchy about their commitment to the business.<\/p>\n\n\n\n<p class=\"\">\u201cThat could lead to reputational and brand risk because you don\u2019t have the staff to deliver your promised service quality.\u201d<\/p>\n\n\n\n<p class=\"\">Vicki Field, director of Field HR, says another problem with a reactive people management stance is that the HR team is constantly fighting fires, making it unproductive.<\/p>\n\n\n\n<p class=\"\">\u201cHR has the same obligations as other business functions,\u201d she adds. \u201cNone can run successfully on a reactive basis. <\/p>\n\n\n\n<p class=\"\">\u201cThe chief HR officer is responsible for ensuring the people function grows with the business, and I\u2019d always recommend planning and preparation with a six-month, one-year and five-year plan.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What is a people strategy?<\/h2>\n\n\n\n<p class=\"\">A proactive people strategy helps solve many of these problems by describing your business\u2019 relationship with its talent. It covers every part of that relationship and how it aligns personnel with business goals.<\/p>\n\n\n\n<p class=\"\">It includes recruitment and onboarding, rewards, recognition, development, culture, values, and internal communications. It should also cover practical issues such as working from home or hybrid-working policies.<\/p>\n\n\n\n<p class=\"\">Each category should contain actions and goals designed to drive the company strategy.<\/p>\n\n\n\n<p class=\"\">Your people strategy is effectively a roadmap that will guide you as the business grows.<\/p>\n\n\n\n<p class=\"\">Take hiring, for example.<\/p>\n\n\n\n<p class=\"\">As the size of the company grows, it\u2019s good practice to have a plan in place for employing more people. You\u2019d want a plan to cover anything from a year to, say, four years ahead. <\/p>\n\n\n\n<p class=\"\">And you\u2019d have clear hiring goals that correspond with the growth of the business, plus pathways to achieve those goals.<\/p>\n\n\n\n<p class=\"\">Say, for example, the business had a growth target of reaching 1,000 customers. You\u2019d need to ensure by that point you\u2019d be ready to hire extra customer support team members and sales reps to meet the demand and keep things moving in the right direction.<\/p>\n\n\n\n<p class=\"\">Martin says: \u201cYour people strategy should also cover how you aim to create the right physical and psychological environment for people to thrive. <\/p>\n\n\n\n<p class=\"\">\u201cThat includes inclusivity and other environmental, social and governance [ESG] factors related to people.<\/p>\n\n\n\n<p class=\"\">\u201cYou need your strategy to demonstrate excellence and engagement with your people. Failing to do that risks damaging your brand.\u201d<\/p>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-78bb5fd1-148d-455b-82f8-e8195a056d03\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-78bb5fd1-148d-455b-82f8-e8195a056d03\"\n\t>Download your free copy of How to attract, engage and keep great people to help you build your team so your business can thrive<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how\">How people strategies benefit employees and businesses<\/h2>\n\n\n\n<p class=\"\">A proactive people strategy boosts morale and motivation by giving people clarity over their roles and showing how they align to the overall business strategy.<\/p>\n\n\n\n<p class=\"\">Vicki says it helps each member of the HR team by explaining their specific objectives within the overall HR strategy. It also helps you focus on each aspect of HR, and continued development of the function, she says.<\/p>\n\n\n\n<p class=\"\">A people strategy motivates staff by giving them autonomy and enabling progress. <\/p>\n\n\n\n<p class=\"\">If the strategy can show them how they fit into the business\u2019 wider purpose \u2013 not just a narrow commercial goal \u2013 it can further improve their engagement and productivity.<\/p>\n\n\n\n<p class=\"\">For the business, better morale and motivation increase staff retention and productivity. It also creates advocacy among your staff, meaning they\u2019ll talk positively about your business and help you attract others.<\/p>\n\n\n\n<p class=\"\">There are many other potential knock-on benefits from having a robust people strategy. For example, if it covers preventative measures on mental health in the workplace, this could avoid much bigger problems in future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"hr\">How HR technology can help<\/h2>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-ie\/sage-business-cloud\/hr\/\">Cloud HR technology<\/a> can play a critical role in delivering your people strategy and ultimately boosting business performance. <\/p>\n\n\n\n<p class=\"\">You can use HR tech across the employee journey \u2013 from onboarding to offboarding \u2013 and to gather and analyse data to help you make smarter decisions and boost performance.<\/p>\n\n\n\n<p class=\"\">Good HR tech can do much more too. For example, it can help create amazing employee experiences for your staff.<\/p>\n\n\n\n<p class=\"\">Interactivity is a key factor. Small businesses tend to grow ad hoc, accumulating various software and solutions that don\u2019t talk to each other. <\/p>\n\n\n\n<p class=\"\">Good HR technology links to other software such as your <a href=\"https:\/\/www.sage.com\/en-ie\/sage-business-cloud\/accounting\/\">accounting<\/a> and <a href=\"https:\/\/www.sage.com\/en-ie\/sage-business-cloud\/payroll\/\">payroll<\/a> systems, and as businesses mature that interactivity becomes critical.<\/p>\n\n\n\n<p class=\"\">For example, linking packages helps you get feedback from your business and benchmark that against your sector. It can also help you get more qualitative analysis in addition to the numbers.<\/p>\n\n\n\n<p class=\"\">Martin gives the example of a client who is already highly proactive in their people management.<\/p>\n\n\n\n<p class=\"\">\u201cBut they still have a constant challenge in recruitment and retention,\u201d he says. <\/p>\n\n\n\n<p class=\"\">\u201cWe\u2019ve been able to use data and analytics in HR technology to help them be more specific in the way they recruit \u2013 about what they need and why; making recruitment practices faster and more effective.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"to\">How to create and deliver a people strategy<\/h2>\n\n\n\n<p class=\"\">The first principle in building an effective people strategy is to link it to the overall business purpose, values and strategy. <\/p>\n\n\n\n<p class=\"\">Each category \u2013 such as recruitment, rewards, and training \u2013 should contain short, medium and long-term goals and behaviours that link to your purpose, values and strategy.<\/p>\n\n\n\n<p class=\"\">Martin says: \u201cYour people strategy needs to link your longer-term plan with your annual operating plan \u2013 to give people the vision and show them how to get there. <\/p>\n\n\n\n<p class=\"\">\u201cIt should also clarify roles and targets, including how their roles relate to others\u2019, so they can see what part of the jigsaw they are in.\u201d<\/p>\n\n\n\n<p class=\"\">Revisit your people strategy regularly to ensure it aligns with the business as it develops.<\/p>\n\n\n\n<p class=\"\">Measure and monitor progress against goals, and report these to the leadership team.<\/p>\n\n\n\n<p class=\"\">Maximise the potential of HR technology, as described above, to help deliver your strategy and boost business performance.<\/p>\n\n\n\n<p class=\"\">Communicate your strategy via a broad range of channels to keep personnel engaged.<\/p>\n\n\n\n<p class=\"\">Martin says: \u201cYou can\u2019t afford to have just one communication format. You need a mix of informal and formal formats. For example, some people don\u2019t respond well to presentations, but may prefer emails. <\/p>\n\n\n\n<p class=\"\">\u201cSo cascade the message in your strategy to individuals via newsletters, emails, and events.<\/p>\n\n\n\n<p class=\"\">\u201cMake sure you understand the best media for your organisation and work all channels.\u201d<\/p>\n\n\n\n<p class=\"\">The final step in creating an effective people strategy is to lead by example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"creating\">Creating a blueprint for people success<\/h2>\n\n\n\n<p class=\"\">People strategies are a vital business performance tool that many businesses either undervalue or overlook completely.<\/p>\n\n\n\n<p class=\"\">As an employer, you may have spent hours creating a powerful business plan and strategy. You may also be proud of the work you\u2019ve done in developing your purpose, values and vision.<\/p>\n\n\n\n<p class=\"\">But all this effort is likely to be ineffective, or even wasted, if you don\u2019t put the same effort into your people strategy.<\/p>\n\n\n\n<p class=\"\">People make all these things \u2013 strategy, purpose, values and vision \u2013 come to life. Your people strategy should be a detailed and well-communicated blueprint for how they do it.<\/p>\n\n\n\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">How to attract, engage and keep great people<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover how to find and retain the best talent so your business can keep growing and thriving.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-78bb5fd1-148d-455b-82f8-e8195a056d03\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ie\/blog\/wp-content\/uploads\/sites\/13\/2022\/04\/GettyImages-1213042683-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ie\/blog\/wp-content\/uploads\/sites\/13\/2022\/04\/GettyImages-1213042683-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join 1.5 million subscribers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-53abbdcc-410c-4c8c-bf97-ca5c6982eebd\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"999\" height=\"666\" src=\"https:\/\/www.sage.com\/en-ie\/blog\/wp-content\/uploads\/sites\/13\/2021\/04\/z.5E3A0481_All-Uses.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ie\/blog\/wp-content\/uploads\/sites\/13\/2021\/04\/z.5E3A0481_All-Uses.jpg 999w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover how to create a people strategy, so you have a proactive plan and vision for the management and development of your employees.<\/p>\n","protected":false},"author":699,"featured_media":8254,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[164],"tags":[119,133],"business_type":[5],"lilypad":[],"context":[],"industry":[],"persona":[232],"imagine_tag":[325,204,327,205,230,328],"coauthors":[421],"class_list":["post-13883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-leadership","tag-employee-engagement","tag-hr-process","business_type-small-business"],"sage_meta":{"region":"en-ie","author_name":"Tim Cooper","featured_image":"https:\/\/www.sage.com\/en-ie\/blog\/wp-content\/uploads\/sites\/13\/2022\/04\/GettyImages-1129490299.jpg","imagine_tags":{"325":"Employee engagement","204":"HR and Payroll","327":"HR processes","205":"HR software","230":"Small business","328":"Top HR resources"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Ireland","distributor_original_site_url":"https:\/\/www.sage.com\/en-ie\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/posts\/13883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/users\/699"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/comments?post=13883"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/posts\/13883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/media\/8254"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/media?parent=13883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/categories?post=13883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/tags?post=13883"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/business_type?post=13883"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/lilypad?post=13883"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/context?post=13883"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/industry?post=13883"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/persona?post=13883"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/imagine_tag?post=13883"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ie\/blog\/api\/wp\/v2\/coauthors?post=13883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}