What Is the Importance of People Management?

A company is made up of people of different ages, with various profiles and customs. Some work well in teams, others are motivated by challenging goals, others are more analytical. 

To manage these differences and to align with the entire team, undoubtedly it becomes a big challenge¬†–¬†and that’s where the importance of managing people in the company comes into play.

It aims to manage the behavior of professionals and create teams that are more satisfied, motivated, qualified and engaged with organizational goals, generating better results for the business. Undoubtedly, every entrepreneur’s dream, isn’t it?

Our friends at Zoe Talent Solutions who have prepared this article know a lot about managing people, so if you want to learn more about it, pay them a visit.

Although it may seem like a difficult situation to achieve, it’s possible to improve people management and reach this level. The key is to pay attention to the five pillars: motivation, communication, teamwork, knowledge, training, and development.

The Pillars of People Management

The strategy involves different factors and tools that result in several benefits as we will see throughout the text. However, before understanding the advantages, it is important to know more about each pillar of people management in the company. Check it out below!


It’s the key to the success of any organization, after all, motivated employees work better. Many people believe that motivation is only achieved with financial incentives, but the methods for achieving this goal are diverse and may vary according to the employee profile and company budget.

Leadership plays an essential role in this process and should support and inspire professionals. In addition, it is possible to invest in improvements in the organizational environment to make it more comfortable and creative, allowing a flexible journey, among other ideas.


Communication is another significant point for people management and business success. It must be clear, objective and accessible. This way, the alignment of information will be faster and more accurate. In addition, it’s necessary to establish channels for bilateral communication, making room for employee participation, suggestions and criticism.


Hardly anyone achieves success alone, right? And as a business grows, teamwork becomes even more essential. For it to be done effectively, each member must understand their role in the team and be aligned with organizational goals.

This process can be done with training, communication actions, among other strategies. Another tip is to make the right hires to build a diverse team that has a collaborative spirit.

Knowledge and Development

The importance of people management in the company also goes through the analysis of¬†employees’¬†knowledge and skills.

By assessing these aspects, the organization can identify each person’s strengths and weaknesses, investing in strategies to improve this, which has an effect on the productivity of professionals.

After investing in knowledge management and identifying staff limitations, the next step is to devise strategies to train employees and seek to develop significant skills for professional performance such as leadership, trust, communication, and time management.

What Are the Benefits of Managing People in the Company?

People management can be applied to organizations of varying sizes and adds many benefits to everyday corporate life. Check out the main ones below.

Best Hires

One of the advantages of managing people in companies is having a more efficient selection process.

During selection, one of the main goals is to find the most qualified professional. However, some managers don’t evaluate whether the candidate is aligned with the activities that will be performed, with the mission and values of the company. This can result in unmotivated employees and end up generating costs with a new hire.

With effective people management, you can profile the job and position and select the most suitable candidates, reducing staff turnover costs and wasting time.

Increased Productivity and Motivation

Productivity is fully related to motivation. According to a study by consulting firm Right Management, the motivated employee has a 50% higher income. The stimulus factor is a clear indication of the activities that will be performed. In this case, individuals know what they should do and what resources are needed to perform their tasks. This avoids wasting time with obstacles or secondary occupations.

Skills are important because they improve the technical performance of professionals and enable them to produce more in less time and with less waste of resources.

The manager’s performance also plays a relevant role in people management. Therefore, the professional needs to develop leadership skills to motivate and inspire the team, have efficient communication, provide feedback, encourage the employee to develop professionally, among other attitudes.

Benefits Management

Another relevant factor for team motivation and performance is the provision of benefits. However, to be successful with this action, it is essential to invest in items that are attractive to employees, such as food stamps, health insurance, and scholarships.

In this sense, implementing people management in the company will be positive to understand what the team’s interests are and to define a benefit package appropriate to their profile and the organization’s budget.

This can be done through internal surveys to listen to workers’ opinions and find out what is really useful for them. It’s also recommended to plan communication actions to publicize the offer of benefits and good practices and to follow up on their use to adapt them if necessary.

Improved Work Environment

The organizational climate tends to improve significantly with personnel management. The application of good practices in the area increases the sense of belonging, shows the importance of everyone for the business and how much their work assists in the achievement of business goals.

The result is a reduction of conflicts between employees and managers, as well as an improvement in the management of these situations, as well as being beneficial to the motivation and quality of the team’s life.

One of the tools that contribute to a good environment is climate research. It allows HR staff to listen to employee feedback, evaluate data and apply improvements.

Employee Development

People work together for the company‚Äôs development. But this is a two-way street because it’s also necessary to enable them. For example, if you hire a trainee, teach new activities, and delegate tasks, over time you’ll have a more qualified professional.

Given this, understanding the importance of managing people in the company is keeping in mind that investing in training and improving performance will be positive for the organization. However, this improvement should not be done at random, it includes analysis of business objectives, employee profile, strengths and weaknesses, among other things.

This will enable you to establish an effective training program – aimed at both employees and leaders – and invest in tools and courses that deliver desired outcomes, such as negotiating skills development, sales skills, and time management.

In addition, team performance must be measured frequently and is one of the responsibilities of people management. In this way, HR managers and professionals will be able to evaluate what should be improved and what are the best actions for it.

Attraction and Retention of Talent

Another advantage of this strategy is in attracting and retaining talent. Managing people in the company usually results in a good organizational environment, benefits, and staff training. All of these factors strengthen the employer brand and become a competitive differentiator in the job market, which contributes to attracting and retaining talent.

Relying on qualified professionals is essential to business performance. In addition, talent retention avoids high turnover and ensures that trained and motivated professionals stay on the team.

Business Objective Alignment

Organizations always seek to achieve good results but often don’t get them. This can happen for several reasons and one of them is that employees are unaware of what goals are to be achieved.

The lack of team engagement and alignment is an issue that needs to be addressed by HR professionals, especially the People Management area. By investing in communication actions, internal events, meetings, feedback, integration of new hires, among other methods, the company can improve team engagement.

It’s crucial that workers know what is expected of them. From this alignment, organizational and individual goals follow the same path, propelling people toward such purposes.

The onboarding of employees is one example. By implementing an integration process for new hires, you can more easily align the company’s mission, values, and goals. This strategy will surely be positive for everyone’s engagement and productivity.