What is the Difference Between HR and People Operations?

What is Traditional HR?

Historically, HR departments have been responsible for the employee lifecycle. They handle all the operational items that a business relies on to conduct its relationship with its employees. Typically, HR is responsible for policy, benefits, compensation, compliance, performance management, systems, employee relations, talent acquisition, and issues of that nature.

HR is considered to be more focused on the needs of the team vs. the needs of individuals. And it has a reputation of being reactive, addressing employees issues as they arise.

What is People Operations?

The term “people operations” was coined by Laszlo Bock, a former HR director at Google, after he noticed a large attrition rate of female employees. He knew that the organization needed to take a new approach to increase support for employees and boost their happiness. In 2006, Google was the first company to transition its HR department to a people operations organization.

Clearly, the traditional HR functions still need to be carried out, but expanding the scope of responsibilities can really demonstrate the value that an HR/People Ops department can provide. So what, then, does people operations entail?

People operations is responsible for the employee experience – which typically includes things like engagement; retention; culture; wellbeing; work-life balance; diversity, equity, & inclusion; environmental, social, & governance; internal communications; employee value proposition; training and development; and employee resource groups. 

People operations is focused on the individual and their needs, both at work and outside. This approach is considered more strategic and proactive than that of traditional HR departments. In people operations organizations, leaders use data to understand where their employees are and what they need, which guides them in making those strategic decisions. 

You can read more about how people operations consultants can help companies here.

Why People Ops Matters to Employees

You don’t have to look far in popular culture to see that HR has had a PR problem. As the people responsible for enforcing policy, they are often thought of as the “fun police,” or they are viewed as only out to protect the interest of the company. While these perceptions are unfortunate, they are not the driving force behind the shift to people operations. 

Long before the pandemic forced the rapid adoption of remote work, the technological innovations of the past few decades made it possible for more organizations to explore remote and hybrid work models. And as global health crises, political unrest, and social justice issues have caused people to reassess their priorities, employees are increasingly looking for employers that recognize their lives outside of work and understand their desire for workplace flexibility. 

Each generation has its own expectations for the workplace, and a responsive HR/people ops org will understand how to support all of them. As Boomers and older Gen X workers retire, millennial and Gen Z employees are starting to make up a greater percentage of the workforce, and their preferences are not the same as their parents and grandparents.

Among the differences? Those younger workers are increasingly looking for companies to make a stand about their values. According to a recent LinkedIn survey of European workers, 60% of millennials and Gen Zers said values could be a dealbreaker in deciding whether to join a new company.

How to Create a Progressive HR/People Ops Model

Not every organization will be ready to take a red pen to the org chart and start renaming departments. But all HR leaders would be wise to reflect on how to incorporate practices that will raise their esteem in the eyes of their fellow executives, their employees, and job seekers alike. 

Lars Schmidt is the founder and CEO of talent search firm Amplify and has had an illustrious career leading people operations functions at many organizations, including NPR and Ticketmaster. His second book, Redefining HR: Transforming People Teams to Drive Business Performance, is an excellent resource for those who want to learn more about how to drive change at their own companies. 

Lars’ advice is focused on evolving into a people operations department that provides strategic value to drive business outcomes. Among his key recommendations:  

• Build culture, policies, and structure that allow people to thrive. When you are invested in your people, they are more invested in your organization.
• Be inclusive, ensure representation, and recognize diverse holidays. Creating an organization where people feel valued and respected will significantly improve engagement and happiness while also reducing retention issues.
• Champion equitable pay practices. Use your influence to make a positive impact for traditionally underpaid constituencies.
• Track data, and use it to drive change. Making decisions based on actual metrics rather than executive preferences, for example, helps lead to sustainable and welcomed change.
• Be neutral: Guide, connect, and serve employees. This reframes HR/people ops as a mediator between employees and the organization rather than only there to protect the company’s interests. 

You can hear more of Lars’ insights from his visit with the Remotely One podcast.

Support for Employees is What Matters Most

Ultimately, it’s not about what your company calls the HR/people function. The delineation between the practices of yesterday’s human resources department and the people operations model of the future should be clear. It’s not a case of rebranding by picking up some business buzzwords – forward-thinking organizations know you must adapt in order to survive (and in this case, survival means business success). 

At Blend Me, we believe that a strong people operations function that helps employees thrive is a clear path to becoming an organization that wins across the board. Connect with us today to learn how our people ops consultants can help you assess your current practices and help your organization evolve.