Learn how to increase profitability through people management

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Learn how to increase profitability through people management

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Several companies are careful with the managing your talents, as they know the importance of valuing human capital so that their products or services maintain quality. What many still don’t understand is that it is also possible to increase profitability through people management.

Some CEOs and directors may be daunted by the upfront costs of implementing a culture driven by talent management, taking into account the necessary adaptations in the activities and organizational culture.

However, these expenses are real investments. Once the corporation institutes people management, it is enough to continue and assess the return, which will certainly be satisfactory.

In this post, we’ll show you how increase profitability through people management. We are sure you will have them insights needed for this. Check out!

What is people management?

People management can be defined as the administration of the set of skills presented by the employees of a company.

In other words, the manager looks for delegate tasks and positions according to the skills that the employees possess. In addition, he works on developing the still weak points of these same collaborators.

This practice has a strategic character, as it seeks to obtain better results by understanding the capabilities of each individual, taking advantage of these skills.

What concepts are related to people management?

Some concepts are part of the people management and are essential for it to be practiced. Are they:

Performance evaluation

Through performance evaluations, it is possible to have a clear picture of the results that the employee presents and to align these responses with the company’s goals. It should be done regularly and used to pass feedbackmonitor the development of each employee.

Feedback culture

just apply performance evaluations it does not indicate that people management is being carried out. In order to bring results and contribute to the development of competences, the company needs to work with a feedback culture.

Within this culture, the manager talks to the employee about their performance and shows what can be improved, guiding What should be done.


After performance evaluation and feedback, has a reward system for motivate employees it’s essential.

As they reach their goals, it’s a good idea to offer bonuses, awards, or public recognition in front of their peers.

This type of policy is very efficient for retaining talent. When they see real chances of recognition of the effort, employees will hardly look for opportunities in other companies.


When it is found that the employee has not achieved the goals, HR must carefully assess the working conditions and activities that the employee undertakes, seeking a solution to the problem.

Dismissing the professional is not the best way out. Often, this person can bring an excellent result in another role. That’s why it’s so important to make a careful performance evaluation. Only with this practice is it possible to have a broad vision of what each one can offer and how these skills can be used.

How to increase profitability through people management?

When applied in a truly strategic way and focused on achieving goals, the company he can increase profitability through people management.

For this, it is important that managers and HR have a well-designed plan and closely monitor the results of the teams. It is ideal that they check how the strategy is contributing to the individual development of each employee and the company as a whole.

Increased productivity

According to a research performed by Workfront, US software company, only 39% of the working day is actually spent on work. This means that the rest of the day is wasted, creating unnecessary costs for the company.

With people management, there is the creation of smart goals, as well as greater employee motivation thanks to the alignment of activities, recognition and more effective internal communication.

These interventions bring a better use of the time spent in the organization and, consequently, more considerable profits.

Turnover reduction

THE turnover it is an issue that concerns managers, due to the high costs and damage to employer branding.

Investing in people management reduces the number of layoffs in the organization, avoiding financial losses and increasing the profit margin.

In addition to saving on severance pay and training new employees, by preserving the employer image, it helps to attract the best talent available on the market.

Increase in quality

The quality of the products or services offered is closely linked to employee satisfaction, especially for positions that deal directly with customers.

With efficient people management, the organizational climate is improved and, consequently, employees act with more dedication and motivation.

This change is reflected not only in the quality of the final product, but also in the lower incidence of errors and operational problems.

Task optimization

It’s no use having a competent employee if managers clutter the time of this professional with bureaucratic tasks that have a low impact on achieving goals.

With a well-done people management, the identification of the main skills of the professionals leads to the positioning of these people in more complex positions.

Thus, you don’t waste that employee with great analytical skills in filling out reports, or the one with strong communication skills away from public contact.

The realization of a smart people management is able to substantially increase the taking company profits, after all, there is a better use of resources and the direction of employees, according to what they are able to deliver.

For increase profitability through people management, it is essential to align performance and corporate goals, thus achieving the necessary balance so that tasks are performed with quality.

If this type of subject piques your interest, take the opportunity to follow HR Consultant UK’s Facebook profiles, Twitter, Instagram and LinkedIn. Keep up-to-date on trends in people management and other issues that will boost your organization’s productivity and profits!


HR Consultant UK can help if you have any questions about Learn how to increase profitability through people management
. Our HR consultant in London can assist you if you live in London. Suppose you live further afield thats not an issue! Visit our HR Consultants Near Me page to find the best consultancy nearest to you.
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