In the contemporary business landscape, the term ‘people-first’ has gained popularity as a guiding principle for companies striving to establish a positive and inclusive work environment. While prioritizing employees is commendable in theory, many individuals and organizations struggle to translate these principles into tangible value. Whether due to a lack of clear comprehension, a genuine commitment to change, or the difficulty of turning a vision into reality, numerous organizations encounter a significant gap between their claim of being people-first and the actual implementation. Moreover, it is essential to recognize the potential confusion between aspiring to create a people-first culture and adopting a people-driven approach. Distinguishing between these two concepts, along with assessing the actual implementation of people-first principles, becomes pivotal in understanding whether organizations genuinely embrace employee empowerment or merely engage in superficial adherence to a trending concept. 

The Role of Organizational Culture

Organizational culture plays a pivotal role in shaping the identity, behavior, and overall dynamics of a company. It encompasses the shared values, beliefs, attitudes, and practices that define how individuals within the organization interact with one another and approach their work. Serving as the unwritten guidebook for employees, organizational culture influences decision-making, communication, and problem-solving. A healthy and positive culture fosters a sense of belonging and purpose among employees, promoting engagement and motivation. It also acts as a powerful determinant of how the organization responds to challenges, embraces change, and adapts to evolving circumstances. Whether it’s a culture of innovation, collaboration, or customer-centricity, the organizational culture profoundly influences the work environment, influencing the recruitment and retention of talent, shaping the company’s reputation, and ultimately impacting its long-term success and sustainability. Recognizing and actively cultivating a positive and aligned culture is essential for organizations seeking to thrive in a competitive and dynamic business landscape.

People-First and People-Driven

Before any discussion of implementation or intention is relevant, we need to understand the difference between these two concepts. People-first and people-driven workplace cultures are often used interchangeably, but they represent distinct approaches to creating values, priorities, and relationships that are people-focused. Understanding the differences between these two concepts can help organizations shape their ethos and align their practices with their desired workplace environment.

People-First Philosophy

A people-first culture is a workplace ethos that places the well-being, growth, and overall satisfaction of its employees at the forefront of organizational priorities. In such environments, the focus extends beyond traditional business metrics, emphasizing the importance of creating a positive and inclusive atmosphere where individuals feel valued and supported. A people-first culture often manifests through policies that promote work-life balance, flexible schedules, and comprehensive employee benefits. Leadership in such organizations prioritizes open communication, active listening, and a genuine interest in the professional and personal development of each team member. Recognition programs, mentorship initiatives, and a collaborative decision-making approach contribute to fostering a sense of belonging and empowerment among employees. Ultimately, a people-first culture seeks to create a workplace where individuals not only contribute their skills but also thrive personally and professionally.

People-Driven Philosophy

A people-driven culture is characterized by a profound commitment to empowering and engaging employees at every level of an organization. In such a culture, employees are not merely regarded as resources but as active contributors to the collective success of the company. Leaders adopt a servant-leadership approach, recognizing the importance of facilitating and supporting their teams rather than dictating from the top. Collaboration and open communication are encouraged, fostering an environment where diverse perspectives are valued. Decision-making is not confined to a select few but extends throughout the organization, allowing employees to actively participate in shaping the company’s direction. Continuous learning and development are prioritized, ensuring that individuals have the tools and opportunities to grow both personally and professionally. A shared sense of purpose and values binds the workforce together, creating a collective commitment to achieving organizational objectives. In a people-driven culture, the emphasis is not only on the well-being of individual employees but also on harnessing their potential to drive innovation, productivity, and overall success.

Key Differences

Philosophy vs. Action: People-first is a philosophy that prioritizes employee well-being, while people-driven is an action-oriented approach that actively involves employees in organizational processes.

Focus on Employee vs. Employee Empowerment: People-first focuses on making employees comfortable and satisfied, while people-driven aims to empower employees to actively contribute to organizational success.

Flexible Policies vs. Collaborative Decision-Making: People-first often involves flexible policies to accommodate individual needs, whereas people-driven emphasizes collaborative decision-making and active participation in shaping the organization’s direction.

Individual Well-being vs. Collective Success: People-first is more centred on individual well-being, while people-driven is oriented toward collective success, where each employee plays a crucial role in achieving organizational objectives.

In reality, a thriving workplace culture frequently integrates aspects from both the people-first and people-driven perspectives. Achieving equilibrium between valuing employee well-being and actively involving them in organizational processes can play a pivotal role in fostering a vibrant, adaptable, and enduring workplace culture. Despite this, understanding the distinctions between these concepts enables leaders to precisely describe the workplace culture they aim to cultivate, facilitating the establishment of focused, precise, and achievable goals to attain the desired results.

Challenges of People-Focused Workplace Culture

Although the idea of being people-focused is undoubtedly good, it’s worth discussing the potential challenges that arise from attempting to implement a people first culture, and some common pitfalls that challenge the potential value of this initiative. 

Tokenism

One of the pitfalls in the adoption of a ‘people-first’ approach is the risk of tokenism. Organizations may implement superficial measures to create the appearance of a people-centric environment without truly integrating the principles of empowerment into their core values. For instance, flexible work hours might be granted, but the organization still prioritizes presenteeism and places undue pressure on employees to conform to traditional working hours.

Genuine empowerment goes beyond surface-level changes and requires a fundamental shift in the organizational mindset. It involves fostering a culture where employees understand the expectations of their role and where individuals within an organization operate within a reality aligned with what is said. For example, it is worth asking, “Am I willing to change my direction?” before soliciting feedback. If the feedback you receive will not impact the outcome of the strategy implemented, then it is actually better to not solicit feedback at all in order to not come across as patronizing. Token gestures that result in no tangible changes create disillusionment and erode trust, ultimately contradicting the promise of a ‘people-driven’ organization

Institutional Inertia

The transition from a people-first approach to a truly people-driven organization often faces resistance from corporate inertia. Established structures, ingrained processes, and a resistance to change can prevent or slow the evolution of an organization toward a more inclusive and empowering workplace. Organizations will find it easier to adopt cosmetic changes rather than fundamentally alter their operational paradigms; however, these changes do not result in lasting impact.

Overcoming corporate inertia demands visionary leadership that is willing to challenge existing norms and embrace innovative practices. This includes reevaluating performance metrics, revisiting promotion criteria, and dismantling nonmeritocratic systems that impede the progress of committed, talented, and capable staff. A people-focused organization requires a commitment to continuous improvement and an openness to adapting to the evolving needs of its workforce.

Profitability versus People

The people-first approach often faces criticism for its perceived conflict with the pursuit of profitability. Critics argue that organizations, in their quest for financial success, may prioritize the bottom line, potentially neglecting employee-centric policies. While profitability is undoubtedly vital for a company’s survival, an exclusive and narrow focus on short-term gains can result in enduring losses manifested through disengaged, burnt-out, and unproductive employees.

However, the evidence suggests that organizations with engaged and fulfilled employees are more likely to surpass their competitors. Embracing a people-driven approach recognizes the symbiotic relationship between employee satisfaction and organizational success. This methodology necessitates a strategic alignment of business goals with the well-being and growth of the workforce, creating an environment where both profitability and employee empowerment not only coexist but mutually reinforce each other. In this perspective, fostering a workplace culture that values and prioritizes employees contributes not only to the company’s bottom line but also to its long-term resilience and prosperity.

Is Being People-Focused Worth it?

Being people-focused can mean a lot of things, depending on who you ask, including both people-first and people-driven. Knowing this and understanding the pitfalls that can be associated with people-focused business, is it worth investing in?

While there can certainly be challenges, organizations with people-focused business principles experience numerous benefits that contribute to the overall well-being and success of both employees and the organization, including improved retention rates, increased productivity, enhanced innovation and creativity, and an increased ability to attract top talent.

Using an example from my own career, through the implementation of people-first workplace practices in the restaurant industry, my employee turnover rate fell to only 30% of the industry standard. Affecting more than 30 restaurants and more than 700 staff, the direct costs of implementing these policies resulted in no demonstrable impact on profitability; however, these policies reduced the cost of training new employees by nearly $100,000 per year and saved nearly 7200 hours in paid training time.

Why People-First does not mean People-Driven

In many businesses, this distinction is not important. In large enterprises with established hierarchies and well-defined reporting structures, this distinction is largely unnecessary, as it becomes obvious where this line is drawn. In smaller organizations, however, the distinction can be quite unclear. The key distinction lies in the primary focus—people-first prioritizes individual well-being, while people-driven emphasizes the collective power of the workforce. While these approaches share common ground in valuing employees, it’s essential to recognize that a people-first business doesn’t necessarily mean it is entirely people-driven, and vice versa.

A people-first business may prioritize employee well-being without involving them extensively in decision-making processes, while a people-driven organization may be highly collaborative but not necessarily place as much emphasis on individual well-being. Striking the right balance between these two paradigms is the key to creating a workplace culture that is not only supportive of individuals but also harnesses the collective strength of the workforce for organizational success.

In essence, while people-first and people-driven share the overarching goal of recognizing and valuing employees, understanding the nuanced differences between these concepts is crucial. It allows organizations to tailor their approach, set clear expectations, and create a holistic workplace culture that integrates the well-being of individuals with the collective drive for innovation and success.

How to Choose: People-First or People-Driven?

Fundamentally, both approaches can work in almost any circumstance. This being said, how does one make the choice? The answer lies in a nuanced understanding of the organizational context, industry dynamics, and overarching goals. Here are key considerations for leaders grappling with this decision:

1. Know Your Organizational DNA:

Assess the nature of your business, industry demands, and organizational goals. A tech startup might thrive in a people-driven environment, fostering innovation through collaboration, while a healthcare organization may find success in a people-first culture to ensure the well-being of its staff.

2. Consider Organizational Size:

The size of your organization can influence the effectiveness of each approach. Smaller companies may find it easier to maintain a close-knit people-first culture, while larger corporations might benefit from a people-driven model that taps into the diverse skills and perspectives of a larger workforce.

3. Evaluate Industry Trends:

Keep a pulse on industry trends and best practices. Some sectors may inherently lend themselves to one approach over the other. Staying attuned to what works for successful organizations in your industry can guide your decision-making.

4. Seek Employee Input:

Employees are the heartbeat of any organization. Solicit their input on the type of culture they believe would be most effective. This not only empowers individuals but also ensures that the chosen approach resonates with the workforce.

5. Strive for a Hybrid Approach:

Recognize that the rigid adoption of one approach may not be the most effective strategy. A hybrid model that combines the strengths of both people-first and people-driven cultures can provide a well-rounded and adaptive organizational environment. Despite striving towards a hybrid approach, be careful to set clear expectations. This approach will never be 50/50 each way, so set expectations to align with the philosophy chosen. People are rarely upset long-term with a decision made; instead, they become frustrated and disillusioned by inconsistent or unpredictable responses.

Ultimately, the choice between being people-first or people-driven is not a binary decision but a delicate balancing act. A successful organizational culture integrates the well-being of individuals with the power of collaboration, creating a workplace that values employees as both individuals and contributors to the collective success of the company. It’s not about choosing one over the other; it’s about finding the equilibrium that aligns with the unique DNA of your organization.