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People managers play a crucial role in modern startups and organizations. Companies that recognize their employees as assets rather than payroll liabilities retain employees longer and achieve sustainable long-term growth. Richard Branson has proved this by building multiple multinational organizations on the philosophy that "People are our greatest asset."

In the wake of the pandemic, talent acquisition and retention are significant challenges plaguing companies worldwide, leading to “The Great Resignation”. People managers are crucial to solving these human problems and building teams for sustainable long-term growth.

This article explores effective people management and the skills every manager must employ to build successful teams.

What is People Management?

People management is a human resource function that optimizes talent and teams to enhance professional growth. People managers acquire, train, mentor, direct, retain, and motivate employees to maximize workplace productivity while ensuring each team member is happy within their position, role, and team.

Why is People Management Important?

Employee turnover is a big problem, especially in the United States, where , "the national average annual turnover rate was 57.3% in 2020." Employee turnover can cost anywhere from —!

Keeping employees engaged is crucial for productivity and retention. , engaged employees are 17% more productive, and highly engaged business units see 59% less turnover.

People management is a way for organizations to create a human connection with employees to nurture talent and support a long-term working relationship.

What Makes a Good People Manager?

A good people manager successfully balances the organization's goals and priorities with employees' needs. They must be excellent listeners and communicators, engaging and empathizing with diverse individuals, often on a global scale.

A good people manager is approachable and trustworthy; someone team members are comfortable talking to openly.

Managing people requires patience and empathy—especially when dealing with diverse individuals in a multinational corporation. People managers must recognize that people digest information differently and might require additional communication or explanation.

Patience and empathy show that you and the organization respect each employee and genuinely care about their wellbeing, thus developing trust in your ability as a leader.

What are the Skills Needed to be a People Manager?

A people manager's core skillset revolves around communication. Here are seven essential skills needed to be a people manager.

1) Interpersonal Skills

Clear communication is a vital people management skill. Managers must often tailor communication so that every individual receives and understands the message.

People managers must be comfortable with multiple forms of communication, including one-on-one exchanges, C-level presentations, and even speaking to large groups or the entire organization.

2) Active Listening Skills

Active listening and genuinely paying attention to everything someone says are essential people management skills. Employees often hold back, afraid of saying something wrong. By actively listening and empathizing, people managers can facilitate a safe space for employees to speak openly to get to the root of an issue.

3) Conflict-Resolution

Good conflict-resolution and impartiality are skills every people manager must possess. Often people managers must look beyond what employees are telling them to identify the root causes.

People managers must resolve conflicts and find solutions to ensure the problem doesn't repeat itself. They need to listen to each viewpoint, analyze the situation, and determine the best course of action while remaining fair and impartial.

Conflict-resolution is a people manager's biggest challenge. If managers don't handle conflict correctly, they risk losing employee trust and confidence.

4) Motivator

People managers often have to motivate teams to meet deadlines or complete challenging projects. Every person and group is different, so managers must tailor messaging and incentives accordingly.

People managers also have to act as mentors, encouraging team members to upskill, pursue promotions, and other career advancement opportunities.

When employees are motivated and engaged, they're more productive and less likely to seek opportunities elsewhere.

5) Hiring and Developing Talent

Talent hiring and development is another crucial people management skill. Managers must recruit great talent but, more importantly, nurture and groom people within the organization.

Knowing there are opportunities to grow within the organization motivates employees to work harder and develop their skills. This development creates value for the organization while minimizing the costly hiring process.

6) Project Management

While people managers don't necessarily lead projects, they often have to simultaneously manage multiple teams and tasks. Knowledge of project and change management will empower a people manager to be better organized and more effective in their role.

7) Leadership

Like any successful manager, a people manager must possess strong leadership skills. People managers must be confident and decisive with every action and decision to set an example for the rest of the team.

Leading by example means that people managers must never contradict the advice or instructions they give team members. They also take responsibility for their work and that of their team.

People managers must understand company employee policies, uphold the organization's standards and live the company's culture to set an example for others to follow. You can't expect people to follow the company's policies if you don't lead by example!

How to be a Better People Manager

The only requirement to be a successful people manager is a desire to communicate and engage with people, everything else you can learn.

Never Stop Learning

People managers should develop a desire for personal growth and development. A growth mindset not only makes you a better manager but sets an example for the rest of the team to follow.

Encourage Feedback

Part of personal growth is encouraging positive and negative feedback from your team and managers. Encourage people to speak openly without fear of retribution.

Find a Coach or Mentor

Finding an experienced coach or mentor can help guide you through challenging situations and identify areas for growth. Ideally, you want someone with experience leading people and could be an individual outside of your organization.

Avoid using your boss as a mentor, which may introduce conflicts of interest or prevent you from speaking openly about specific issues.

Don't Micromanage

People managers should guide rather than instruct their teams. Instead, a manager's role is to prioritize tasks and ensure everyone has a manageable workload to perform at their best. Allowing people to make mistakes is critical for personal growth and shows that you trust your team.

Leverage Technology

People managers should leverage technology to optimize workflows for themselves and their employees. Investing in tools and systems to automate time-consuming administrative tasks allows teams to focus on work that delivers value for the organization while reducing workloads.

Conclusion

At its core, people management is about communication and listening—vital skills for every leader and manager. To be effective communicators and listeners, people managers must empathize with employees to fully understand their challenges and concerns.

People managers must strive to be trustworthy, transparent, and approachable. Employees must feel safe to be vulnerable and have honest conversations about organizational issues so that managers can work to fix them.

Most importantly, people managers are the conduits for productivity for organizations to enjoy long-term sustainable growth.