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June 3, 2025

What is a People Strategy? Examples and Best Practices for 2025

three diverse hands interacting with a line graph. The graph includes colorful data points, bar and pie charts, a pyramid chart, and a lightbulb icon, symbolizing analysis, teamwork, and data-driven ideas.

Your people are your biggest asset. But in today’s talent market, saying you care isn't enough to retain them – you need a well-planned people strategy to back it up.

But what does a successful people strategy actually look like? Let's explore real examples from leading companies, plus best practices to help you get started.

What is a people strategy?

A people strategy is a plan that shows how a company will find great employees, help them grow, and keep them happy while meeting business goals. It's basically your blueprint for building the kind of workplace where people want to do their best work.

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Benefits of a people strategy

A people strategy can help you meet your business goals, but it’s not just about the bottom line. Strategic people management also benefits employees, helping them feel confident and ready to crush it.

Here's how a people strategy can help boost your business outcomes:

3 people strategy examples to inspire your own

From upskilling to onboarding, a well-planned people strategy can help you recruit, train and retain, while saving you a bundle in turnover costs.

Need inspiration? Let’s get into the real talent development plans behind three companies doing it right:

1. Spotify

When it comes to taking care of their people, Spotify doesn't mess around. Armed with solid data insights and a "work wherever" mindset, the music giant has built a culture that puts growth front and center - and reduced attrition by 15% as a result.

Here's what makes Spotify's approach effective:

  • Personalized growth plans: Every employee gets to map out their own goals and development journey, with their manager in their corner to help make it happen.
  • An AI-powered career matchmaker: Spotify’s internal talent marketplace uses smart tech to connect employees with new opportunities.
  • A culture code with backbone: The Spotify Band Manifesto encourages employees to take risks, learn from their mistakes, and tackle challenges head-on – it even includes a dedicated section for leadership development for managers.

✅Apply it: Want to build your own internal talent marketplace? Start small. Map out a process that includes skills assessments to spot hidden talent, internal interview questions that dig deeper than the usual hiring scripts, and dedicated time blocks for employees to level up their skills.

2. Cisco

Cisco doesn’t just have one of the best employer brands – it’s also leading the charge as an inclusive workplace with stellar employee satisfaction rates. Cisco goes all-in on three key areas: creating an inclusive culture, letting people work their way, and making sure everyone has the chance to thrive.

Here's what Cisco brings to the table:

✅Apply it: Creating an inclusive workplace doesn't have to be complicated. Start with regular listening sessions to understand what your team needs. Then turn those insights into action with flexible work policies and clear growth paths. Even small steps like monthly coffee chats or simple mentorship programs can make a huge difference.

3. Patagonia

Patagonia walks the walk when it comes to mixing business with activism. The company has built a workplace culture that puts its planet-saving mission front and center of everything it does – including talent acquisition and development.

Throughout the employee lifecycle, Patagonia’s people strategy packs a serious punch:

  • Mission-first hiring: The company is laser-focused on bringing in top talent by actively attracting candidates who are outdoor enthusiasts.
  • Standing up for what's right: Patagonia’s HR function is about so much more than paperwork. HR leadership has even offered to cover bail and legal fees for employees who get arrested while peacefully protesting for abortion rights, voting rights, and environmental causes.
  • Walking the sustainability talk: Through its Environmental Internship Program, employees can take two months of paid time off to roll up their sleeves for environmental causes.

✅Apply it: Ready to put your values front and center? Don't overthink it. Weave your values into your hiring process and support causes your team cares about. Simple moves like scheduling a team volunteer day can help your people feel like they're part of something bigger.

How to create an effective people strategy

Now that you've seen how top companies do it, let's break down how to build your own winning people strategy in four practical steps.

1. Tie your people strategy to your business strategy

Think of your people strategy as the bridge between what your company wants to achieve and how your people will make it happen. The key is making sure everyone – from new hires to the leadership team – understands not just what they're doing, but why they're doing it.

  • Break down company goals into team-specific missions that actually mean something to people's daily work
  • Create clear links between individual KPIs and broader business objectives
  • Schedule regular check-ins to help employees connect their daily tasks to company milestones
  • Use team meetings to celebrate wins and show how individual contributions impact company success

Build department roadmaps that show exactly how team projects ladder up to company-wide goals

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2. Determine the key drivers for growth

Creativity is rocket fuel for growth. And there's data to back this up – McKinsey found that companies that prioritize creativity consistently outperform their peers financially.

But you can't just demand it – you need to nurture it. Without the right people strategy, you risk creating a work environment where great ideas stay buried and innovation stalls.

Here's how to unlock your team's creative potential:

  • Create innovation time blocks (like Google's famous 20% rule)
  • Set up cross-functional brainstorming sessions
  • Build psychological safety into team meetings
  • Reward and celebrate new ideas, even if they don't pan out
  • Use collaborative tools to capture and develop ideas

3. Identify skills gaps and blockers

When employee performance starts to slip, it's tempting to point fingers. But experienced people leaders know better than to jump to conclusions. The disconnect usually happens when leaders and employees aren't on the same page about which skills and competencies matter most.

To get to the bottom of it, it’s crucial to ask for employee feedback on a regular basis. Here's how to bridge the gap:

  • Map out your skills inventory
  • List the must-have skills for each role
  • Compare against current employee capabilities
  • Note any gaps or misalignments
  • Prioritize the most critical needs first
  • Use your weekly check-ins to keep the feedback flowing

4. Refine your HR strategy

Your people strategy is only as effective as your HR strategy. While your people strategy focuses on building strong relationships across the organization, your HR strategy is all about attracting and keeping the right talent. The secret is to align the two.

Here's what that looks like in practice:

  • Create measurable goals for culture-building initiatives
  • Design compensation strategies based on market data and internal equity
  • Build tech-enabled feedback loops between managers and employees beyond annual performance reviews
  • Implement HR analytics tools to predict and prevent turnover
  • Track recruitment metrics that actually matter (think: quality of hire, time-to-productivity, employee retention rates)

Turn your people strategy into reality

When you want to crush your business goals, you create a business strategy. And when you want to build the team that'll help you get there, you need a people strategy that puts employees first.

For real HR leaders, a people-first talent strategy isn’t just about great office snacks and fancy employee well-being perks.

The most successful HR teams, people teams, recruiters and hiring managers are the ones that balance the human touch with the right tools and data for an employee experience that's just as awesome as the customer experience.

Attract, find, and keep top talent. Breezy covers the hiring and performance management, so you can keep growing your business.