7 ways to grow people leaders (not just people managers)

“Managers light a fire under people; leaders light a fire in people.” - Kathy Austin

Most companies have plenty of managers, but they lack real people leaders - the type of leaders who inspire teams, build trust, and make people want to stick around.

If you're in HR or a people role, you know the difference between managers who burn out teams for results vs those who focus on well-being and still deliver. 

That’s the difference. Managers manage work while leaders grow people. The good news is that developing people leaders isn't about expensive training, it’s about shifting mindsets and making strategic changes.

So, here are seven ways to grow people leaders (not just people managers) and transform your company from a culture of "checklists" to one of true leadership.

1. Teach the "why," not just the "how"

Instead of training managers to focus solely on processes and tasks, focus on helping them understand the purpose behind decisions. After all, it’s easy to teach someone how to conduct something like a performance review or how to write a project plan. 

But what really creates impact is helping them understand the why behind their role, such as the purpose, its broader influence, and the importance of people leadership itself.

Many managers are thrown into the deep end without support. In fact, research shows only about one in five managers feel like their organization actually sets them up for success in leading people. That’s a huge gap and a big opportunity because when we help managers connect to the ‘why’, they start leading with intention, not just instruction. 

2. Build emotional intelligence (EQ) into leadership DNA

You’ve heard the saying: “People don’t quit jobs, they quit managers.” But did you know employees say their manager affects their mental health as much as their spouse? Both equate to 69% of a person’s mental health, which is even more of an impact than their doctor (51%) or therapist (41%).

That’s how much leadership matters.

People leadership isn’t about knowing all the answers: it’s about knowing how to listen, how to navigate hard conversations, and how to create safety and trust.

To help build emotional intelligence, you could try offering training and normalizing conversations about empathy, well-being, and the human side of leadership.

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3. Reward coaching, not just commanding

Although most managers want to be better coaches, they often get buried beneath deadlines, emails, and the pressure to perform, which pushes people's development aside. And when coaching isn’t recognized or rewarded, it starts to slip off the radar.

But here's the thing: true people leaders understand that getting work done includes growing the people doing it. Investing in their team's development isn't a side project: it's crucial to long-term success.

One of the best ways to approach this is by adding coaching to your leadership competencies and performance reviews. You could also make space in the calendar for meaningful 1:1s and celebrate the managers whose teams grow under their leadership, not just the ones with the best metrics.

4. Embed leadership development early and often

Leadership isn’t a title you suddenly become worthy of one day: it’s a mindset that grows over time. And yet, many companies wait until someone’s managing a full team before offering any leadership support. 

So, don’t wait until someone is "senior." Start leadership development at every level, planting seeds of ownership, accountability, and people-first thinking as early as possible.

It's also worth noting that less than half (48%) of managers feel confident they have the skills to lead effectively. That lack of confidence doesn’t just hurt them, it can seep down to their teams, too.

5. Create environments where people feel safe to speak up

It’s hard to lead well if your team is walking on eggshells. The ability to speak up without fear of judgment or punishment is one of the clearest predictors of high-performing teams. And it all starts with the manager. Research shows that 70% of a team’s engagement is directly shaped by their manager.

That’s a lot of influence that proves people leaders have the power to make or break the team culture. So, it’s worth training leaders to embrace giving and receiving feedback. Instead of hiding mistakes, encourage them to admit mistakes when they happen, and share important lessons learned because of those mistakes. You could also use team check-ins, retros, or anonymous Q&As to surface hard truths and build trust.

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6. Model leadership from the top

People mimic what they see. So, if senior leadership embodies people-centered values, future leaders will too. If not, even the best training programs will fail. Unfortunately, nearly half of managers say they don’t see clear, timely communication coming from the top. That’s not exactly leading by example.

Here are some tips on how senior leaders can model good people leadership:

• Openly share leadership journeys, including missteps.
• Mentor up-and-coming leaders, which will provide valuable guidance.
• Model collaboration by involving others in decisions.
• Show empathy in interactions.
• Regularly recognize and celebrate the growth and achievements of others.
• Actively seek feedback from all levels to demonstrate a commitment to continuous improvement.
• Model a healthy work-life balance to help set a positive example for the entire team.
• Lead with integrity through transparent and honest actions to help build trust from the top down.

7. Empower autonomy and decision-making

Managers who simply follow orders can’t become leaders. So, give managers room to lead and not just execute. In recent years, managers have taken on more than ever before picking up the slack from layoffs, navigating restructures, and juggling multiple hats. Many are barely holding things together.

If you want people to grow into true leaders, they need space to make decisions, try new approaches (and yes, sometimes fail).

Autonomy isn’t about throwing managers to the wolves. It’s about trusting them to lead and giving them the tools to do it well.

Here are some easy tips to help empower autonomy and decision-making:

• Define clear decision boundaries - Let managers know where they have full ownership and where alignment is needed. 
• Celebrate initiative, not just outcomes - Recognize managers who take thoughtful risks or bring new ideas forward, even if the result isn’t perfect.
• Provide support without micromanaging - Regular check-ins should feel like coaching, not checklists. Ask “How can I support you?” instead of “Did you do this yet?”

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