Issue No. 11 | The Essential HR Systems Every Small Business Needs (and What You Can Skip)
I love a good system. A good process. A good checklist.
Give me all the organization and I’m one very happy HR girl.
And when it comes to the people side of things, the HR systems for your small business can make or break how efficiently things run.
If your systems are working for you, things run smoothly (we want this). If they’re working against you… well, that’s when things start to feel a little chaotic (we don’t want this).
And if you’ve ever tried Googling “HR systems for small businesses”, you already know what happens next: A flood of overpriced software, complicated platforms, or corporate-sized solutions you absolutely do not need.
Seriously, please, please don’t waste your time, money, or sanity on something that will likely just overcomplicate things.
As always, my goal is to simplify things for you, so I’m going to walk you through practical HR systems that your small business will actually benefit from (plus the ones you can happily skip right over).
And no, I’m not talking about software. I’m talking about the systems, processes, and — you guessed it — checklists that help you run your business as smoothly as possible.
The HR Foundations
(The Systems You Shouldn’t Skip)
Start here. These are your “don’t skip” systems that really every small business will benefit from.
HR System No. 1 | HR Compliance for Small Businesses
This will vary slightly depending on where your business is located in Canada, but every small business needs a few must-haves in place:
Required employment documents
Payroll and pay record systems
Health & safety basics
A simple set of workplace policies
This isn’t “documenting for the sake of documenting.” Having these essentials in place protects you, your business, and your team.
HR System No. 2 | Hiring & Onboarding Process
If your hiring process is solely based on “your gut and a handshake,” we need to talk.
A simple hiring + onboarding system helps you:
Attract better candidates
Ask the right interview questions
Make confident hiring decisions
Bring new employees into the business without chaos
Your hiring process doesn’t need to be fancy. A repeatable checklist, a structured interview guide, and a 30-day onboarding plan will do wonders.
HR System No. 3 | A Performance Management System (NOT an Annual Review)
If you’ve read my other posts, you already know: Traditional performance reviews are not welcome here.
But your team should always know how they’re doing. Keep it simple with:
Clear expectations
Regular one-on-one meetings (in whatever style fits your business)
In-the-moment coaching
A culture of regular feedback
Once-a-year reviews are stressful, outdated, and labour-heavy. No thanks.
The HR Add-Ons
(Helpful, But Not Mandatory)
These aren’t required, but they’re powerful upgrades when you’re ready and they’ll make your life a whole lot easier.
HR System No. 4 | Lightweight HRIS Options for Small Businesses
HR software can be amazing when your team starts growing — but most big-name systems are built for much larger companies and come with features you absolutely do not need yet.
They’re clunky, expensive, confusing, and honestly… kind of annoying when you implement them too early.
For small teams, look for a simple, lightweight HRIS that lets you:
Track time off
Safely store employee records
Automate payroll or sync with your payroll provider
Skip it if you have between ~10 employees and everything still feels manageable. At that stage, a well-organized Google Drive and a couple of spreadsheets can work beautifully.
HR System No. 5 | A Simple, Useful Employee Handbook
I am a huge fan of employee handbooks — but not a huge fan of a massive 80-page corporate monster. A small-business handbook can be short and should be clear and actually usable.
A simple handbook helps you:
Set teamwork norms
Establish communication expectations
Build a strong, consistent culture early
Reduce misunderstandings
Keep everyone on the same page
This does not need to be a massive document. A clean 5–10 page handbook with your core expectations, key policies, and team values is a great starting point.
HR Systems You Absolutely Don’t Need
(At Least Not Yet)
Now for the fun part. These are the HR systems small businesses are told they “should” have
— but truly don’t.
✖️ Annual Performance Reviews
Nope. No thank you. Put that pen down.
They are simply not effective.
Go with one-on-ones and regular, real-time feedback instead.
✖️ A Policy For Everything
You don’t need a rulebook for every tiny thing your team might do. You’re a small business, not the federal government. Most of the time, the issue isn’t a missing policy — it’s a missing conversation.
What you actually need:
A basic set of foundational policies
Clear expectations
Normal human conversations
Talk to people first. Create a policy only if you actually need one.
✖️ A Formal “Progressive Discipline Program”
Small businesses don’t need those corporate-style systems where Step 1 is a verbal warning, Step 2 is a written warning, Step 3 is a final warning, Step 4 is a meeting with five managers and someone crying.
What you do need is a simple, consistent approach:
A conversation
A documented summary
A clear expectation
A follow-up
That’s it. Keep it simple and human, not robotic.
How to Build Your HR System Without Losing Your Mind
Let’s continue to keep things simple.
Start by asking yourself:
What feels messy or inconsistent right now?
What processes am I constantly doing on repeat?
What slows me down every time I hire, onboard, or manage someone?
What do employees ask about the most?
Start with a Google doc and build a simple system around each of those and boom — you’ve got HR. Consistency beats complexity every single time.
HR Doesn’t Have to Be Complicated
Small business HR should feel human, supportive, and simple.
Start with the essentials, add on when you’re ready, and ignore anything that feels too heavy or too corporate for your stage of business.
And if you want help building your HR systems faster (and with way fewer headaches)?
I’ve got tools, templates, and bite-sized guidance made specifically for small business owners — no fluff, no jargon, no overwhelm.
Just HR made simple.