Issue No. 09 | Do You Need HR for Your Small Business?
I’m going to guess you started your business because you’re good at what you do. You have a passion for the product or service you offer and you want to share it with others.
I’m also going to guess that, in the early days of dreaming about starting your own business, you weren’t dreaming of writing policies, documenting conversations, or decoding the Employment Standards Act of BC.
At some point, every small business owner goes from just managing the business to managing a team of people. And that’s the moment you’ll likely ask:
“Do I need HR for my small business?”
Excellent question!
Keep reading for the who, what, and how of HR for small business.
What HR Actually Means in a Small Business
If I had a nickel for every time I had to explain what I do for a living…
Indeed, HR is often one of the most misunderstood parts of running a business — big or small. But we can forget the big-company picture of a large HR department with layers of processes and forms. For small businesses, HR is simply the systems and habits that protect your business and support your people.
At its core, HR is about:
Hiring the right people
Setting expectations
Keeping your business legally compliant
Managing team issues early
Helping people succeed
Even if you don’t have an HR person, you already have HR — because you’re the one doing it.
5 Signs You Might Need HR Support Sooner Than You Think
1. You’re about to hire your first employee
The moment you hire someone, you’re officially an employer. Congrats! 🎉
But this also comes with laws, documentation, onboarding, payroll rules, and clear expectations. Most small business owners underestimate this step… until they’re elbow-deep in a late-night Google search trying to figure out what they don’t know.
2. You’re noticing performance issues (and you’re not sure how to handle them)
If you’ve ever wondered, “Is this serious enough to talk about?” or “How do I even start this conversation?” — that’s HR. Early intervention is your best bet. This will save your future self more headaches.
3. Your recruitment process is… chaos
Maybe you post a job ad, get overwhelmed, and rush the hiring process because you “just need someone.” So you hire a warm body… and they only last 3 weeks. A consistent, intentional hiring process is essential — especially if you want to stop hiring “warm bodies” and start hiring the right people.
4. Your HR documents are outdated, incomplete, or nonexistent
No job descriptions. No policies. No offer letters. No performance expectations.
If you’re relying on “verbal understanding”, you’re overdue for a little HR structure. Clear documentation protects your business and your people — and creates much-needed clarity.
5. You’re not sure what you’re legally responsible for
Employment standards, overtime rules, vacation entitlements, protected leaves, terminations. It’s a lot. And it only takes one mistake to cost you big bucks. If you're constantly Googling, second-guessing, or hoping you're doing things right, it’s time for support.
What Happens When a Small Business Ignores HR
The reality is, when your HR ducks aren’t in a row, something can easily come back to bite you — usually in the form of money, time, or both. These are the sneaky consequences that commonly creep up on small business owners:
Costly hiring mistakes
High turnover
Poor team culture
Zero documentation to rely on when things go sideways
Burnout (for you and your people)
Legal risks you didn’t even know existed
I don’t say that to scare you, but it is a reality of owning a business and hiring a team. But the good news is most of these problems small business owners deal with are completely preventable with simple HR systems. Let HR do the heavy lifting, so you don’t have to.
What HR Looks Like in a Small Business
You don’t need over-complicated systems or a 100-page handbook. HR for small business can be as simple as the following:
1. A clear hiring and interviewing process. Know what to ask, what to avoid, and how to evaluate fairly.
2. Basic policies and documentation. To protect your business and provide your team with clarity.
3. A simple onboarding process. People do better when they know what to do and how to do it.
4. Clear communication and expectations. Frequent check-ins are more powerful than big formal reviews.
5. A plan for dealing with issues. To make sure you have a consistent approach to dealing with those not-so-pleasant situations that will pop up.
Do You Need an HR Person — or HR Support?
This is where a lot of small business owners can get stuck. The good news is you likely don’t need a full-time HR person. You just need the right support at the right time.
Fractional HR (like what I do at HR Formed) gives you:
Expert guidance when you need it
HR documents that meet your needs and meet compliance
Systems that actually work for your business
Protection for your business
Support with hiring, onboarding, and people issues
HR help — without the full-time salary
In other words: the HR you actually need, not the HR you don’t.
If you’ve been wondering whether your business needs HR, here’s the easy answer:
If you have people, you already are doing HR.
The question is whether it’s working for you or against you.
With the right systems and support, leading your team gets a whole lot lighter, clearer, and less stressful.
If you’re curious what HR support could look like for your business (no pressure, truly), feel free to book a quick call. It’s just a conversation — not a commitment.
Just click the big pink button below to book a call ⬇️