If you’re running a small business, chances are you’re managing everything from sales and operations to marketing (and somewhere in the mix, you’re also handling HR)!
You may not have the luxury of a dedicated HR manager, but that doesn’t mean your people strategy has to fall by the wayside.
Getting HR right doesn’t require a huge team. It just takes a few well-structured practices, some reliable support, and a commitment to doing the right thing.
Here’s how to stay compliant, build a strong team, and avoid unnecessary risk—even without an HR department.
Get the Basics Right: Contracts, Policies and Paperwork
It might not be the most exciting part of running a business, but sorting your HR foundations is essential — and it’s the law.
Every employee you hire must receive a written statement of employment particulars from day one. This outlines their key terms: job title, salary, working hours, holiday entitlement, and notice period.
Beyond that, you’ll need a small handful of HR policies. These don’t need to be complex, but they should be clear and up to date.
At a minimum, have written guidance on:
- Annual leave and sickness procedures
- Disciplinary and grievance processes
- Health and safety responsibilities (especially if you employ five or more people)
Having this documentation in place helps avoid misunderstandings later and protects your business if disputes arise. It also shows your staff that you take your responsibilities seriously, even if you’re a small team.
Store all employee documents securely, either in locked storage or via a cloud-based HR system. These platforms are designed specifically for SMEs and help you stay organised without admin overload.
Recruit Smarter Without a Recruiter
Recruitment doesn’t have to be formal or expensive, but it does need to be intentional. Think of each hire as an investment — rushed or poor hiring decisions are costly and disruptive.
Start by writing a job ad that clearly explains the role, the type of person you’re looking for, and what it’s like to work at your business. Avoid generic descriptions — focus on real tasks, clear expectations, and your company’s values.
When it comes to interviews, ask structured, role-specific questions and take notes during each session. This helps you compare candidates fairly and avoid bias.
You should also be mindful of discrimination laws under the Equality Act 2010. Steer clear of questions that relate to age, health, marital status or nationality, unless they’re directly relevant to the role.
Once you’ve found the right person, don’t forget to carry out right-to-work checks and make sure they sign a formal employment contract before their first day.
Onboard New Hires Like a Pro
The first few days in a new job shape how someone feels about your business, as well as how quickly they become productive. Even if you’re tight on time, a structured onboarding process makes a big difference.
Start with a welcome email and a clear plan for their first week. Introduce them to key team members, walk them through how your business operates, and explain expectations around timekeeping, communication, and performance.
Give them the tools and logins they need from day one so they don’t waste time waiting.
Create a 30/60/90 day plan to help them understand what success looks like in their role, and schedule regular check-ins to give feedback and answer any questions.
This isn’t just good for the employee, it’s good for your bottom line. Staff who feel supported early on are more likely to stay and perform well.
Know Your Legal Duties as an Employer
UK employment law applies to you whether you’ve got one employee or 100. And getting it wrong — knowingly or not — can lead to serious consequences, from tribunal claims to fines or reputational damage.
As a minimum, you need to:
- Provide payslips and pay at least the National Minimum Wage
- Enrol eligible staff in a workplace pension scheme
- Allow the statutory minimum for holidays and sick pay
- Maintain a safe working environment, including for remote workers
- Comply with UK GDPR when handling employee data
You don’t have to become a legal expert, but you should know when to seek advice. ACAS (Advisory, Conciliation and Arbitration Service) is an excellent, free resource for employment law guidance.
Your accountant may also be able to flag key obligations.
If you’re unsure about anything, from holiday calculations to disciplinary processes, it’s worth consulting an HR adviser or employment solicitor before problems escalate.
Create a Positive Culture Without the Corporate Jargon
You don’t need posters or buzzwords to build a healthy workplace culture. In a small business, culture is shaped by everyday behaviour, especially yours as the leader.
Treat your staff fairly. Be clear about what’s expected, but stay approachable.
Give regular feedback, and recognise good work when you see it. If something goes wrong, deal with it quickly and calmly rather than letting frustration build.
Flexibility also goes a long way. Whether it’s being understanding around childcare, health issues or workload pressures, small accommodations often lead to stronger loyalty and better performance.
Encourage open communication, even if your team is small or hybrid. A monthly check-in, a simple “how’s it going?” Slack message, or regular team lunches can all help people feel connected and valued.
Deal With Problems Before They Escalate
Small issues don’t stay small if they’re left unaddressed. If you notice a problem — someone arriving late, missing deadlines, or causing tension — have a quiet word early.
These conversations might feel uncomfortable, but they’re usually easier than dealing with a formal grievance later on.
Keep it informal at first: explain the issue, listen to their side, and agree on a way forward.
If behaviour doesn’t improve, start keeping written records and move towards a structured disciplinary process.
Being proactive shows leadership. It helps staff know where they stand, and it builds a more transparent, accountable workplace culture.
Know When to Outsource or Get Extra Support
As your business grows, you may find that HR tasks begin to drain time from other priorities, or that issues become more complex than you’re comfortable handling.
That’s when outside help can make a big difference.
You might:
- Use HR software to automate tasks like holiday tracking, contract templates and sickness logs
- Retain an HR adviser for a set number of hours a month
- Call on a solicitor for specific legal issues, such as dismissals or TUPE transfers
Outsourcing doesn’t mean losing control. It means gaining peace of mind, freeing up your time, and making sure you’re not exposed to avoidable legal risks.
Stay on Top of Admin Without the Headache
It’s easy to forget HR admin when your days are full of customers, sales, and deliveries. But staying on top of the basics keeps things running smoothly, and protects your business.
Use simple tools like shared calendars, shared boards, or HR software to keep track of:
- Probation review dates
- Holiday and absence records
- Employee birthdays and work anniversaries
- Key policy review dates
Set quarterly reminders to review contracts, check compliance, and plan for upcoming recruitment or training needs.
Little and often is the key to avoiding a last-minute scramble.
Summary: You Don’t Need an HR Department — You Just Need to Care
You’re not expected to know everything. But as a business owner, you set the tone for how your people are treated, and how your business performs.
With a little structure, a few smart tools, and the right support in place, you can manage HR confidently and compliantly—without an in-house team.
People are your most valuable asset. Look after them well, and they’ll take your business further than you imagined.
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs, free from personal guarantees.
