The shift from process to people
Historically, HR was seen as an administrative support function responsible for payroll, policies and performance reviews. While these areas are still important, they’re no longer the heart of the department. The COVID-19 pandemic accelerated a shift towards more human-focused approaches, where employee experience, flexibility and wellbeing became business-critical concerns.
The rise of remote and hybrid working, a sharper focus on mental health, and new expectations from younger generations have all contributed to this evolution. However, some organisations have misunderstood what this shift requires. Throwing perks at the problem, like free snacks or early finishes, won’t cut it if these gestures aren’t part of a deeper, more meaningful strategy.
Putting people first isn’t about offering more surface-level benefits; it’s about fundamentally rethinking how your organisation operates, and how you treat your employees. This approach allows HR teams to shape a workplace where people are happy, thriving, and delivering results
What a people-centric HR strategy looks like
A people-centric strategy should be designed to actively influence culture, performance and business direction by focusing on the people behind the HR metrics. Let’s explore the key elements that make an effective people-centric HR strategy.
Prioritises employee wellbeing
A workplace can’t function without healthy, motivated people. That’s why physical, mental and emotional wellbeing should be a foundational part of any people-first HR strategy. From flexible working options to proactive burnout support, HR should be championing initiatives that help employees to feel safe and healthy.
Embeds empathy in leadership
A people-centric strategy depends on leaders who genuinely understand their people. Empathetic leadership helps to open up better communication and creates a more psychologically safe workplace. That doesn’t mean being soft; it means being smart enough to know that how you treat people directly impacts how they perform.
Gives employees a voice
When HR teams create opportunities for employees to speak up, share ideas and give feedback, they build a more human workplace. Surveys, focus groups and regular one-to-ones are essential tools for shaping strategies that actually work. Remember that listening is one thing, but acting on that feedback is what builds trust.
Uses data to personalise, not standardise
Rather than forcing everyone into the same performance framework or development pathway, people-centric HR uses data to create more individualised, relevant experiences that boost both morale and results. With the right data on employee performance, engagement, development and more, HR teams can offer training and progression plans tailored to each employee.
Linking a focus on people to employee performance
Prioritising people isn’t just good ethics – it’s good business. A well-executed human-centred strategy can directly impact key organisational outcomes and improve business performance. Let’s explore some of the ways putting your people first can grow your business.
Retention
When employees feel heard, supported and valued, they’re more likely to stay. A people-first approach reduces attrition by building a culture where people want to grow, not go. It saves on recruitment costs and keeps valuable knowledge within the business.
Engagement
Engaged employees show up with energy, passion and commitment. A people-centric strategy fosters higher engagement by addressing individual needs, recognising effort, and making work feel meaningful. In turn, this can improve everything from customer satisfaction to profitability.
Productivity
It’s simple: happy, healthy people get more done. By addressing obstacles to performance, such as poor management, lack of recognition or unclear goals, HR teams can help employees to stay motivated and work more effectively.
Innovation
A people-first HR approach creates an environment where employees feel valued, supported, and safe to share new ideas. This kind of culture encourages collaboration and experimentation, fuelling innovation and helping to drive the business forward.
Customer experience
There’s a clear link between employee experience and customer experience. When staff feel empowered and valued, they’re more likely to deliver excellent service. A people-centric approach to HR helps to build motivation and a commitment to customers from within.
How HR directors can lead the change
Moving to a people-centred approach doesn’t happen without leadership buy-in. HR directors need to drive this change from the top, leading by example and embedding it into the fabric of the organisation. Here are some key steps to ensure a successful transition.
Redesign performance reviews with people in mind
Traditional employee performance reviews can feel like impersonal, box-ticking exercises. A people-first approach means making these reviews more dynamic and tailored to the individual. Cultivating a feedback culture where performance is talked about regularly and constructively rather than just once or twice a year helps employees to stay aligned, motivated and supported. As well as output, performance reviews should also look at personal growth, development and wellbeing.
Train leaders in empathy and coaching
Empathetic leadership isn’t always instinctive. Leaders need the tools and frameworks to guide their teams with understanding, listen actively, and provide coaching that helps people to grow. Workshops, coaching certifications and peer mentoring can all help leaders to move from command-and-control mindsets to a more enabling, people-focused approach.
Use feedback loops to shape ongoing HR strategies
As your people and business needs evolve, your HR strategies need to adapt. Regular feedback loops through surveys, one-to-ones and performance reviews can help HR teams to understand what’s working and what’s not. Acting on feedback and using it to shape better experiences is essential to ensure that people remain at the centre of your HR strategy.
Measuring the outcomes of your people-centric strategy
To prove the value of your strategy, you need to measure its outcomes. Key performance indicators for a people-centric HR approach include engagement scores, retention rates, productivity metrics, employee net promoter scores (eNPS), and even customer satisfaction data.
Using HR software such as PeopleHR, that helps you to collect, analyse and report on this information can be a game changer. With access to real-time data, HR teams can easily report to stakeholders, track progress, and identify areas for improvement in their strategies.
It’s important to make sure that these metrics are reviewed regularly and that the insights gathered lead to meaningful action. Auditing your strategy annually, or even quarterly, helps to ensure that your approach is still relevant, effective, and aligned with business goals.
