What Does a People Operations Team Actually Do?

Many lay people ask, "What does People Operations do?" thinking that the profession is not much different from Human Resources. However, large companies, such as Google, have adopted the concept of People Ops, understanding that being employee-centric is the key to sustaining business in the modern era when the economic situation can be very dynamic.

In an article published in 2019, Forbes even mentioned the People Operations Revolution, a practice where employees' needs become the employer's primary concern. Yes, if you don't understand the employees, the company will only lose their best talents. In addition, the digital age opens up job opportunities, giving employees many opportunities to change companies.

This Cake article will examine a career in People Operations in-depth, covering key responsibilities and a salary guide. We hope readers will see that the role of People Operations in optimizing employee experience and organizational success is critical to business defense.

What is People Operations?

People Operations is part of Human Resources. This department improves a company's employee management system. According to HROne, People Operations is responsible for creating a fun, inclusive, safe workplace that provides space for employees to grow.

Google pioneered the idea of creating People Operations in the 2000s. In the Trinet report, Google engineers felt that the term HR was bureaucratic and not proactive. People Operations are involved in employee well-being discussions rather than just taking orders.

In his Forbes article, Bart MacDonald points out that before the concept of People Operations was introduced, HR job descriptions were rigid and uninteresting. They only used data to see whether employee performance aligned with company goals.

Right now, human resources' purely administrative focus is considered inadequate. Bart believes it is more appropriate to use exit survey data, satisfaction surveys, and turnover rates to determine whether or not the company’s facilities are sufficient to meet employee needs.

Another interesting fact is that most companies agree that retaining and developing employees is much cheaper than recruiting new candidates. In the last few years, start-up companies have emerged using People Operations.

Key Responsibilities of People Operations

1) Talent Acquisition and Onboarding

• People Operations is responsible for developing job postings and recruiting strategies to attract top talent. 
• Develop a systematic onboarding process and ensure that all departments are actively involved throughout the process.
• People Operations is responsible for interviewing and evaluating candidates.
• Provide tools, resources, and support for the new hire mentorship program.

Example: During the candidate sourcing process, People Operations ensures that job descriptions are inclusive and valuable to broaden the pool of candidates. Then, during the onboarding period, People Operations organizes training sessions focusing on hard skills and the company's norms, work culture, communication style, and introduction to working together across teams.

2) Employee Engagement and Retention

As mentioned in the previous paragraph, hiring costs drain a company's budget. However, the company has no right (it may even be against the law) not to allow employees to resign. A U.S. Bureau of Labor Statistics report found that in the first half of 2022, 4.4 million workers voluntarily left their jobs.

Yes, high turnover is a red flag because it means something is wrong with human resource management. The company will lose the most if this problem is not taken seriously. Therefore, the role of People Operations is to:

• Develop strategies to increase both productivity and employee satisfaction.
• Provide training programs to improve employees' hard and soft skills.
• Monitor and improve employee retention.

Example: In addition to training programs for new employees, People Operations offers unique programs for existing employees to meet their development needs. Each program is evaluated through regular surveys distributed to employees.

3) Performance Management:

People Operations is responsible for monitoring and managing employee performance. Performance management is a tool to track employee performance for further evaluation or follow-up. 

Through performance management, People Ops sets goals to be achieved, implements systems to track and improve employee performance, provides constructive feedback, conducts thorough evaluations, and provides necessary training. 

The result of this management process is an increase in productivity figures, a reduction in the potential for employee turnover, and improved communication between teams.

Examples: The People Ops team implemented a supportive, inclusive, equitable self-assessment and peer feedback process. The space to give each other performance reviews must be safe and not cause future conflict. Depending on this need, this performance review period can be once a month or every two months.

People Ops can also schedule one-on-one meetings for each member to avoid personal or non-personal issues that hinder employee performance.

4) Compensation and Benefits:

Salary and benefits are the two main elements that employees often consider when deciding whether or not to stay with a company. In a study published in September 2024, toxic company culture and low salaries are cited as two reasons that lead employees to resign.

Believe me, companies that tolerate toxic culture are often closely related to inadequate wages and a lack of benefits.

When a company decides to form a People Operations team, it recognizes that an unhealthy work ecosystem should not be created. The first step the People Operations team can take is to create a salary structure outline.

The salary structure should be based on consistency, fairness, and competitive standards in the industry. Now, what People Ops needs to do is understand the salary scheme, including the system of increases and compensation. Some common options are:

• Salary structure based on hierarchy: Increases are based on performance, promotions, and level increases.
• Tiered structure system: Salary increases are given when employees meet monthly (or annual) targets.
• Step structure system: The system focuses more on how long the employee has worked for the company, meaning that evaluation is based on loyalty and dedication.
• Broad-based structure: Used when the company wants to pay employees based on background or other considerations. However, this can create pay disparities among employees that may lead to conflict.
• Market-based structure: Uses the salary rates of other companies as a consideration. This system has the potential to create salary differences for employees working in certain regions.
• Skill-based structure: Used when the company considers the skills and abilities of employees. The more advanced the skills possessed, the greater the bargaining power to obtain higher wages.
• Flat salary structure: Provision of equal pay for all employees, regardless of position, length of service, or experience.

5) Workplace Culture and DEI (Diversity, Equity, and Inclusion):

Implementing DEI in the workplace is an effort to provide equal opportunity for everyone, regardless of gender, race, ethnicity, religion, age, sexual orientation, disability, and social class. However, implementing DEI is not enough to simply open the door to diverse hiring. Yes, the workplace must be able to become a safe space for everyone.

For those of you who are interested in being a part of People Operations, believe me, DEI has many benefits for all parties. Employees gain transparency and fairness in the hiring process, salary determination, promotions, and access to company resources.

From the economic perspective, companies will gain creative and innovative employees, expand opportunities to attract top talent and customers, and promote good employee retention for business continuity.

The responsibilities of People Operations include:

• Creating a positive and inclusive workplace culture.
• Ensuring that DEI initiatives are integrated into business operations.

The implementation of DEI is not a one-time effort; People Ops must conduct an ongoing campaign with new and existing employees. To ensure that the DEI program has been effectively implemented, People Ops must diligently collect data from employees, customers, and other sources on the level of implementation. This can be done in a variety of ways, such as conducting surveys, interviews, focus group discussions, exit interviews, and ensuring coverage of diverse groups.

6) Compliance and Risk Management

While not bureaucratic in nature, People Operations is still responsible for ensuring that all of the company's business units comply with labor laws. In addition, People Ops must take steps to minimize risk through proactive planning and training.

The stages that are usually carried out in an effort to prevent undesirable outcomes in the future are:

• Perform risk identification.
• Perform risk assessment.
• Create a prioritized list of risks that have the greatest potential to impact the organization.
• Perform risk mitigation.

Example: Technology Company A is experiencing rapid growth, resulting in an increased need for employees. Hiring new employees complicates the organizational structure as the number of departments increases. The company needs to identify risks associated with business development, such as increasing employee data security, implementing labor compliance, and preventing unpleasant workplace behavior.

7) HR Technology and Data Analytics:

People Operations works across large teams, so HR tools are needed to streamline processes and gain actionable insights. You also need the right tools to make data-driven decisions about workforce planning.

As a People Operations candidate, you should be proficient in at least a few of these tools:

• Operational HRIS
• Applicant Tracking System (ATS)
• Learning Management System (LMS)
• Performance Review Platform
• Employee Engagement Applications
• Payroll and Tax Software
• Attendance Management System
• Employee Survey System

Salary Guide for People Operations Roles

To determine how much People Operations salaries are, you need to do in-depth research with the right keywords tailored to your location, company size, experience, skills, and the type of company you are applying to. That's why it's important to ask for salary and benefits transparency during the interview process.

Why People Operations is Crucial for 2B Companies

Each department is designed to connect with one another. The work of People Operations allows this team to be involved in decision-making at the managerial level.

The data presented by the People Operations team, in collaboration with other departments, includes strategies to attract top talent, satisfaction levels, retention and turnover rates, and employee development needs. 

The analysis, written by former People Ops lead Narin Atamian, predicts and plans the company's future. So, having People Operations is a long-term investment.

Take, for example, Google, which is increasingly successful in prioritizing the use of data to make employee-related decisions instead of just basing them on subjective judgment.

Indirectly, Google is making a big impact, especially in the tech industry. There is a significant and positive change in the way companies treat employees. This standard is being applied in other companies.

Some other successful companies that also use People Operations include IBM, Propel, Relativity Space, Atomic, Yelp, Credible, Noom, Route, Cloudflare, and Zoox.

Conclusion

• People Operations is part of the Human Resources department. The primary focus of People Operations is to ensure that employees feel comfortable and secure in the company, so its work program is employee-centric.
• The work of People Operations revolves around: Talent acquisition and onboarding
• Employee engagement and retention, performance management, compensation and benefits, a workplace culture that embraces diversity, equity, and inclusion, compliance and risk management, HR technology and data analytics.
• Salaries in People Operations vary by location, company size, industry, experience, and expertise. The average salary for entry-level is around $48,750, mid-level is $41,000 to $77,500, and senior level is up to $160,009 per year.
• The existence of People Operations has a greater impact on the company's business. The better the workplace ecosystem created by People Operations, the easier it is for companies to innovate for business continuity.

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