HR Support for Small Businesses: Essential policies and strategies
Running a small business is no easy task for entrepreneurs. Without a full office of staff to support, you’re likely juggling multiple hats, including employee management.
When employees feel valued, they’ll be far more productive, and this strengthens your business in the long run. However, finding the time to oversee people-related responsibilities effectively may be a task you don’t have time for right now. That’s where investing in Human Resources (HR) comes into play.
HR professionals develop and implement strategies that cover the entire employee journey from onboarding through to resignation and everything in between. Plus, good HR practices protect your business against employment laws.
Do small businesses need HR?
Many small business owners overlook HR, believing that it’s solely for global corporations with hundreds of employees. However, this is not the case.
Here are some of the reasons why it’s essential to invest in HR for your small business:
Compliance with employment law
Having a HR team will provide expert guidance on employment laws.
It starts with making sure that every employee is handed a written contract outlining their job role, hours, salary and notice period. Businesses should ensure they’re paying at least the minimum wage, providing paid annual leave and following the correct procedures when it comes to sick leave.
What’s more, HR will guide you on how to treat all employees fairly, to avoid being sued for discrimination and promote equal opportunities, regardless of race, gender, age or religion.
Training and development
Businesses that actively provide career-boosting opportunities are likely to retain top talent. HR professionals can take the lead by managing employee development programmes. These may include shadowing mentors or enrolling employees on training courses in their field.
Performance management
The most successful small businesses are those that prioritise their employees’ growth.
In small teams, one poor decision from a single employee can slow down company progress and turnover. Therefore, each should be well-briefed on their day-to-day responsibilities to prevent miscommunication and avoidable errors.
HR professionals create frameworks that outline each employee’s goals, which provide direction and create boundaries. Plus, it makes it more straightforward for managers to monitor progress and address immediate challenges. They’ll also carry out regular performance check-ins and reviews to encourage open conversations and coach team leaders on how to deliver constructive feedback.
3 HR policies for small businesses you must follow by law
Within the UK, there are three small business policies which are required by law. They are put in place to ensure that all employees are treated equally while guaranteeing a safe and healthy working environment.
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A grievance policy
This policy is in place to give employees the right to voice their concerns confidentially. They may wish to raise an issue about the way they are being treated by management. Or it may be to resolve a dispute with a colleague. It provides a clear pathway of the steps required to make a complaint and make sure it is addressed fairly.
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A health and safety policy
While employees are in the workplace, it is the company’s responsibility to keep them safe. This policy outlines the key health and safety procedures and what to do in an emergency. It covers everything from risk assessments to assigning first aid trainers, should an accident or fire occur.
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A disciplinary and dismissal policy
All small businesses face misconduct in the workplace. This policy is in place to incidents are handled correctly. It also regulates how to handle ongoing performance issues; and the steps to take before formal action (such as dismissal) is required.
How is HR in small businesses different from large companies?
HR isn’t a one-size-fits-all approach.
While the overall goals in both small and large businesses may be similar, they present very differently.
Small business managers without HR experience often rely on HR professionals for guidance when making decisions. Larger companies, on the other hand, tend to have in-house HR teams with specialists across the likes of compliance and disciplinaries.
Directors of small businesses typically get more involved in HR practices day-to-day. Due to the limited workforce, managers and HR experts can carry out policies verbally and in person. Larger organisations can struggle to maintain that same connection and instead, rely on scalable tech systems.
HR tips for small businesses
If you’re keen to implement HR policies into your small businesses, here are some important tips to take on board:
Determine your HR needs
Small business owners need to understand what they want from a HR specialist for both the current time and in future.
It would be wise to sit down with key decision-makers to discuss the practical needs of the business. This may include the employment laws that apply to your team, and how quickly you plan to scale up. It’s also a good time to identify any gaps: Do you need to set up contracts and NDAs? Have you determined policies for sick pay?
Develop clear company policies
We advise you to create written policies to handle disputes and cover you when legal action is threatened.
An employee handbook is one of the easiest ways to bring all of this information together. While it’s not legally required in the UK, it’s a valuable resource that can act as a go-to guide for both new and existing staff.
Get in touch with Trusted HR
Trusted HR offers practical, professional guidance tailored to the needs of your small business. Our experienced consultants work with organisations across the UK, providing flexible support. Our range of services includes:
- Managing Conduct
- Management and Leadership Development
If you’re looking for expert HR guidance but aren’t sure where to start, we’re here to help. Trusted HR offers a free, confidential 45-minute consultation to support small businesses with their HR needs. Speak directly with one of our specialists today.
