Modern organizations are rapidly changing, and a critical shift that’s taking place is the understanding that putting people first not only matters, but it makes an impact on the bottom line.
People operations (known as people ops or POPs for short) is a business function first coined in 2006 by Google’s former HR director, Laszlo Bock. It focuses on employees and puts the people who power an organization and their needs first.
When done right, people operations create a happier, healthier, and more productive workforce.
People operations is a strategic business function concerned with putting people first and taking care of the overall management of the workforce in a company.
The people ops department champions the continual development and engagement of staff, creating smarter ways of working and fostering a sense of community and motivation within a workplace.
Typical responsibilities of people operations departments include:
Regardless of industry, business managers all over the world have woken up to the fact that people are the heart of any company. Your biggest customers are your employees. Without a solid workforce and key talent, your organization’s value will decrease.
Perhaps it’s easiest to quantify the value of people operations by first assessing the costs of getting it wrong. For instance, employee turnover averages 57.3% in the US. If people are unsatisfied with their roles, company culture, or workplace environment, they will leave, taking valuable knowledge with them.
The cost of recruiting new people is also high. In 2023, the average cost of a new hire increased to $4,700 (up from $4,000 only a few years prior). Not to mention that costs to hire executives and leaders are 3 or 4 times higher than the overall average cost per hire.
There are also very tangible benefits to stepping away from the traditional bureaucratic and authoritarian role of HR by making people operations the heart of your HR department. That means:
There’s no denying in the modern era of work, a business’s workforce is critical to enhancing the value of a company.
While people ops is a strategic part of a company’s human resources department, there are some critical differences between POPs and HR.
Traditionally, HR departments have focused on the practical elements of managing employees, including logistical, legal, and contractual obligations, ethical considerations, and the day-to-day management of the workforce. HR departments that operate in this way can feel very bureaucratic, non-personal, and somewhat stale.
People operations prioritizes people and their needs and identifies the causes of behavioral or systemic patterns in the workplace. It also values the employee experience and improves company culture, recognizes employee achievements, and humanizes workplace interactions.
Traditional HR |
People Operations |
Focus is on enforcing compliance |
Focus is on maximizing the value of employees |
Works within narrow boundaries |
Takes a holistic view and uses people and technology to achieve goals |
Reactive — responds to issues after they arise |
Proactive — actively improves the employee experience, ways of working, and the company culture |
Manages employee database and inputs pay changes when requested by leaders |
Engages workforce and recognizes achievements and valuable contributions by the team |
Manages recruitment when job vacancies open up |
Supports current workforce to minimize turnover |
Operates separately from other departments |
Connects all departments and the people within them |
Not involved in decisions made by higher management |
Included and consulted in strategic decision-making |
Does not look at the bigger picture or understand the root causes of employee disatisfaction |
Uncovers employee patterns and trends and identifies root causes of common issues |
Policies and processes override the needs of employees |
Employees’ needs and expectations are discussed openly and valued |
Linear approach |
Agile and adative approach |
When it comes to people ops, strengthening employee engagement to minimize attrition and turnover is a top priority. But it’s not the only priority. Here are a few others.
Onboarding is a critical moment in the employee life cycle where people ops can establish trust with new hires. Important elements of onboarding include the level of transparency throughout the recruitment process and the support that helps new hires step into their role with confidence. When businesses don’t focus on these aspects, new hires are more likely to quit in a short time frame.
Every employee will inevitably transition through different phases in their career and relationship with an organization. Savvy HR teams will likely be aware of the employee life cycle and where each employee is in that continuum.
However, many traditional HR teams focus exclusively on recruitment, onboarding, and offboarding, without paying much attention to the middle stages that relate to employee recognition, development, and retention.
People ops, on the other hand, takes a more holistic view and prioritizes the moments that matter for each employee to keep them engaged and build trust.
Keeping staff happy and healthy involves activities that veer away from the model traditional HR teams may be used to.
People ops teams can improve the employee experience by considering:
In the hustle of daily operations, business managers are often unable to provide avenues for professional development for their direct reports.
That’s where people operations can step in to ensure everyone is progressing in their careers.
Well-trained employees are more likely to stay with the organization instead of looking for new work elsewhere due to feelings of boredom or the need to chase new challenges.
Establishing a vibrant and healthy recognition culture takes some work. Traditional HR teams have a distinct lack of focus in this area which is why around 40% of employees feel demotivated at work due to a lack of recognition.
When people ops teams recognize good work, they are able to reduce turnover rates significantly. No matter how recognition becomes part of workplace culture, the important thing is that employees feel appreciated.
In times of change and upheaval, people operations are responsible for creating stability as soon as possible. Key priorities during such events include:
People ops plays a critical role in ensuring such changes progress smoothly and seamlessly. The sooner employees can adjust, the fewer consequences and financial losses the organization will incur.
Every employee’s journey with an organization will inevitably come to a close, and it’s the role of people ops to ensure they part on good terms. This leaves the door open for past employees to refer clients or new hires to an organization, or they may even come back and work on projects.
It’s vital to track the right people metrics at every stage, including the qualitative elements people ops prioritizes. Traditional HR teams can benefit from tracking more meaningful data points.
Modern people ops managers track the following metrics:
If you’re considering creating a solid people ops department, here are some key roles to consider along with their responsibilities.
When it comes to establishing a thriving people operations department in your organization, some important things to consider include:
The success of a new people ops division rests on your ability to implement the basics properly.
Start by using the data you have about your employees to identify key pain points at any stage in the employee life cycle. Make sure you tell employees why you’re collecting information and how you plan to use it.
If your current culture doesn’t place people at its center, or if you don’t view your employees as your biggest customers, then this shift needs to happen pronto. Otherwise, you’ll face challenges with incorporating a successful people ops program.
People ops should align the people strategy with the company’s overarching goals. So, make it a habit to involve the Director of People Ops in conversations about the company’s strategic direction.
Don’t fall into the trap of treating people ops in the same way you do traditional HR. Break down the bureaucratic feel by being transparent with your workforce and understanding what motivates each person in the organization.
Finally, set up a tool like Happeo to help you gather meaningful data about your employee’s engagement rates. With the right data in your hands, your people ops team can proactively enhance employee motivation and engagement before it becomes a retention problem.
No matter how big or small your company is, people ops is a central aspect of modernizing your HR strategy and attracting top talent.
With tools like Happeo, you can seamlessly enhance your people ops strategy by:
Join hundreds of teams that have improved their people ops strategy in 6-8 weeks with Happeo.