Managing People Without a Big HR Department

Recruiting and managing employees can be the most rewarding part of running a business , but it can also be the most daunting, especially if you don’t have anyone experienced in HR and employment law. In the UK, as soon as you employ someone, even part-time, you take on a set of legal responsibilities and you ignore those at your peril.

From day one, you must provide a written statement of employment or an employment contract (https://www.acas.org.uk/contract-types-and-employer-responsibilities), pay at least the National Minimum or Living Wage (https://www.gov.uk/national-minimum-wage-rates), make sure everyone has safe working conditions, and comply with employment law. You also have to get statutory holiday, sick pay, and maternity/paternity/adoption leave, sickness absence, notice periods, pay in lieu etc right.

For small firms, keeping on top of all this can feel overwhelming and many refuse to grow to the point where they need to employ someone so that they don’t have all the rules to content with. But there are people who can help guide you through the maze of regulations and legislation and you could be growing and thriving with their help, creating more jobs for people in your community.

Getting HR right is crucial, not only to avoid legal trouble, but to attract, retain, and motivate good employees. People are your most valuable asset:

• Use free resources from ACAS such as templates for contracts, disciplinary procedures, and holiday records (https://www.acas.org.uk/templates-forms).
• Keep accurate, confidential records of hours worked, holidays taken, sick leave, and any performance or disciplinary issues.
• Be consistent and transparent with policies – inconsistency can lead to accusations of unfairness.
• Carry out right-to-work checks and ensure you’re meeting all anti-discrimination obligations.

Make sure personal information about people is only available to people who need that information and destroy it as soon as it’s no longer needed. GDPR rules apply. As do Health and Safety rules including duty of care for people’s wellbeing.

HR is also about creating a positive work culture. That means clear communication, listening to people’s concerns and ideas, recognising and rewarding achievements, and providing training and development opportunities. Even a small budget for training can have a big impact on loyalty and productivity. Often you people spot potential problems before you do so encourage them to flag up issues early. Having a culture where people know they can speak up without blame is an inexpensive way to avoid all sorts of otherwise expensive traps.

When things go wrong, which even in the best workplace they do from time to time, deal with issues as soon as possible and fairly. Don’t let frustrations build. A quiet conversation now can prevent a full-blown grievance later.

If you can’t justify hiring a full-time HR professional, you can outsource to HR consultancies or join trade associations that offer helplines and legal advice. The cost is often far less than the potential cost of getting things wrong.

Getting HR right reduces turnover, builds a good reputation as an employer, and makes it easier to recruit when you need to grow. It also helps you sleep better, knowing you’ve done the right thing for your people and your business.