How to build a People and Culture strategy

The days when traditional HR methods were enough are gone. There is now a growing shift towards People and Culture—a strategy that puts employees at the heart of the company.

This transition is more than a new name or term. It means transforming the workplace into a space where employees feel truly valued and connected to their work.

Companies that understand this are happier, more fulfilling places to work and achieve better results. According to Deloitte research, organisations with strong cultures have recorded a fourfold increase in revenue growth.

4 key benefits of moving towards People and Culture

1. Increasing engagement and improving the employee experience

When employees feel engaged at work, they give their best. Companies with highly engaged workforces are more profitable. Adopting a People and Culture approach means realising that potential by creating an environment where employees are eager to contribute.

This goes beyond ordinary team-building activities. Psychological safety, more than anything else, is critical to team performance. A workplace focused on People and Culture makes a deliberate effort to ensure that employees feel comfortable expressing ideas and taking risks without fear of negative consequences.

Greater engagement delivers results. When employees are happy and confident in their work, they are more productive and become advocates for the company. This means lower turnover and higher customer satisfaction.

2. Alignment with organisational culture and leadership

Some companies are exceptionally successful, often because their teams align with the company’s core values and leadership vision. People and Culture plays a major role in this. Various studies suggest that company culture matters more than salary when it comes to job satisfaction—a clear indication of where the focus should be.

Prioritising People and Culture means incorporating company values into everyday operations and interactions, rather than simply imposing rules and procedures. Leaders must take the lead. They set the tone for a culture where values are lived, rather than merely displayed in attractive lettering. Employees who believe their company has a purpose beyond profit are 27% more likely to stay in their jobs.

3. Attracting and retaining top talent

Hiring and retaining top talent is where a strong People and Culture framework pays off. According to LinkedIn research, 40% of employees would consider leaving for a company with a better culture. That figure cannot be ignored.

A People and Culture approach is more than an attractive theory. It resonates deeply with what today’s employees seek: a physical or virtual workplace where they are valued, heard and part of a larger mission.

Companies around the world, not only well-known brands, recognise that an inclusive culture attracts talent. The job offer is only the beginning. When employees perceive that their workplace has effective communication practices, engagement increases: 85% become more engaged in their roles. Satisfied employees mean lower turnover and a stronger, more cohesive team.

4. Encouraging innovation and adaptability

In a world where change is the only constant, a company’s ability to innovate and adapt is crucial. This is where a strong People and Culture strategy really matters. Research indicates that 79% of CEOs worldwide are concerned about a lack of essential skills among their employees. People and Culture addresses this by encouraging continuous learning and adaptability.

When employees feel supported and encouraged to develop new skills, they are more likely to innovate and adapt to changing circumstances. Google, for example, encourages employees to spend 20% of their time on side projects, which has led to some of its most successful products. This kind of culture stimulates innovation and builds a resilient workforce able to respond to changing market demands.

A culture that values adaptability and continuous learning also appeals to today’s workforce, particularly millennials and Gen Z. These generations seek more than a job: they want opportunities to grow and make an impact. Companies that provide such opportunities are more likely to retain younger employees.

3 things to consider when moving towards People and Culture

1. Visualise the end goal

Start by gathering employee feedback to understand their needs, concerns and ideas. Use it to create a transition plan and communication strategy, ensuring that the change is timely and aligned with your team’s evolving dynamics.

2. Prioritise learning and growth

Invest in leadership training to give your team the skills needed to build empathy, encourage inclusion and contribute to a positive workplace culture. Leaders should model a more people-centred approach.

3. Create a clear communication plan

Develop a strategy to explain the move from HR to People and Culture, emphasising the comprehensive nature of the change. Make sure employees understand why it is happening, the benefits they can expect and what the broader focus on culture and individual wellbeing will mean for them and the organisation in the long term.