HR toolbox for small businesses

A one-stop-shop for busy leaders seeking free, compliant and efficient resources and documents to build and manage their HR.  

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Know and implement your HR foundations

The foundations your small business needs to thrive and stay compliant

Starting or managing a small business can be overwhelming, and it’s easy to either overthink every detail or overlook important aspects entirely. Both approaches can lead to anxiety or legal repercussions.

Whether you’re a small business owner, head of operations, director, or anyone in charge of HR (even if it’s not your main role), this is a big no-no.

Staying compliant and on top of legislation is crucial to your business' success. This is true for any business, but it’s especially important for small businesses, as facing an employment tribunal or a penalty can be particularly damaging.

So, how can you achieve this without hiring an experienced professional? Here’s a simple process to get you started along with additional resources to support you:

  • Draft employment contracts: Create employment contracts that comply with legal requirements, clearly defining your legal relationship with your employees.
  • Stay up-to-date: Keep informed about the latest changes in employment law.
  • Maintain employee records: Ensure your employee records are checked and stored in accordance with GDPR and Right-to-Work regulations.

Check out our articles and templates

External resources

Sign up for free to CIPD for employment law updates 

Receive HR inform's updates on forthcoming legislative changes, including the implementation of new laws and the dates when new statutory rates come into effect.

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HR software for CEOs, founders and managing directors 

Learn how Charlie can help your company stay legally compliant and get HR off your plate for good

Learn more
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Create your employee handbook and HR policies 

Protect your small business and standardise practices to avoid legal issues

An employee handbook is essential for HR, yet it's often seen as a “nice-to-have” for when your company grows larger.

The problem with this do-it-later approach is that you may have to deal with challenging situations such as employee grievances or misconduct that you’ll need to address, and you’ll need to be button-down about it to avoid any legal complications. 

Without an employee handbook or HR policies, you risk mishandling these situations and creating uncertainty among your employees about basic issues like remote working or holidays

So let’s focus on the basic requirements your business needs to run smoothly: 

  • A comprehensive company handbook: Include all HR policies and make it accessible to your team members.
  • Mandatory HR policies: Ensure you have the three policies required by UK employment law: health and safety, grievance, and disciplinary.
  • Annual leave policy: Have clear expectations for when and how team members can book time off.

Check out our articles and templates

Build your hiring and onboarding processes

A business might be small, but it’s rarely made up of just one person

Hiring people at your business can feel like a massive task, especially when you have to source the candidates yourself. 

But it’s not impossible, and it’s often not worth paying a recruiter for, despite what you might hear. 

Once you’ve hired them, it’s important to onboard them properly. Without a structured process, onboarding can feel rushed, leaving new hires to figure things out on their own, which is not a good idea.

If onboarding is poorly managed, you may end up with a disengaged employee who is confused about their role and potentially leaves your business soon after.

To avoid that, make sure you:

  • Prepare for your interviews: Write a detailed job description that outlines all aspects of the job, making the screening process easier.
  • Display the salary band: Being transparent about salary can attract the right candidates.
  • Prepare onboarding in advance: Have your onboarding process ready before the new hire starts. This makes you look more professional and helps your new team member get set up for success quickly.
  • Plan their training: Have a training plan in place for your new hires.

Check out our articles and templates

Think about benefits, pension scheme and company values

Do more than just basic HR: be the leader people want to follow

HR is often seen as a checkbox on your to-do list, but it’s much more than that when it comes to meeting your team's expectations.

From the benefits you offer to the company values you promote, there’s a lot to consider. As a small business, it’s important to focus on what has the most direct impact on your team members while staying within budget.

In this section, we’ll focus on: 

  • The kind of benefits you can offer to your team 
  • How to put together a pension scheme 
  • The company values that matter to you

Check out our articles and templates

Invest in performance management 

Focus on your team’s growth and performance right from the start

Performance management can be a real challenge problem for small businesses – either it’s non-existent, or you have trouble putting it into place, often due to a lack of expertise or resources.

But performance management is an aspect of HR you shouldn’t underestimate. Even though setting up a good performance management process takes time and effort, it’s worth the investment, leading to better productivity and employee satisfaction rates. 

When it comes to performance reviews in particular, our advice is to have regular and frequent catchups rather than yearly ones – it will help your team to feel connected, engaged and to ask for help when they need it. 

More on performance management below.

  • Prepare for your interviews: Write a detailed job description that outlines all aspects of the job, making the screening process easier.
  • Display the salary band: Being transparent about salary can attract the right candidates.
  • Prepare onboarding in advance: Have your onboarding process ready before the new hire starts. This makes you look more professional and helps your new team member get set up for success quickly.
  • Plan their training: Have a training plan in place for your new hires.

Check out our articles and templates

Look into automating your most pressing HR tasks

Reduce and streamline your manual processes with HR software

With all the resources provided in this HR toolbox, you’ll be able to build HR processes that work for your small business, but no matter how well you set them up, you’ll still spend a lot of time doing manual HR. Here are some examples: 

  • Having to approve every leave request one by one, check who is already off, recording every approved request and calculating allowances
  • Spending time finding information and documents in different drives
  • Having constant background distractions and questions from team members 
  • Not being 100% certain about being compliant 

If managing this feels overwhelming or if you're already seeking more proactive solutions, HR automation could be the answer. 

Check out our articles and templates

Bonus: hear from leaders in your field

Check out how Charlie is helping leaders

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Your weekly dose of small business insights: how we strive to build happy and high-performing teams at Charlie with words from our very own CEO Ben Gateley. Sign up today.

Check out recommendations from Charlie

As a small business leader, it’s important to stay up to date with what your peers are saying – that’s not done without a bit of reading. Another way to do this would be to join communities and networks, so make sure to get on LinkedIn to find the right events. 

This doesn't require dedicating an hour each day to reading (we know you don’t have time for that), but scrolling through newsletters or listening to podcasts on your morning commute can be a quick win.

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