This article will explore how to manage HR in small business, including strategies to help manage and streamline HR functions without impacting productivity. if you wan to manage HR in your small business and wish to speak to an expert for their advice or on how we can help you, call us today on 01925 202 217.


From absence management to employment contracts, keeping up with HR tasks can be very labour-intensive for small businesses. Unlike larger organisations, small businesses and start-ups lack the time, resources, expertise, and tools to manage HR policies, procedures, and documentation effectively.

How do I set up HR for a small company?

Every business with employees needs HR to succeed, even the smallest of companies. A business’s HR function is responsible for legal compliance, talent acquisition, employee retention, conflict resolution, training and development, performance management, payroll, and more. The size and extent of every business’s HR needs depend on several factors, including its industry, the number of employees it hires, employment policies, workplace policies and its specific requirements.

However, the basic steps for setting up HR within a small company include the following:

1. Identify your business’s core HR needs
2. Appoint a designated HR person
3. Develop a set of HR policies, procedures, and processes
4. Create an employee handbook
5. Automate tasks with HR software


What are strategies I can use to manage HR in my small business?

When managing HR in a small business, it’s important to think smart and be organised to keep HR tasks running as smoothly and efficiently as possible. Below, we’ve listed a few top strategies you can employ for streamlining and effectively managing HR in your small business.

  • Use HR software – If there’s one thing small businesses are particularly short on, it’s time and resources. HR software can help you to automate many HR tasks, meaning less time wasted on repetitive admin.
  • Create an onboarding process – Create a comprehensive and efficient onboarding process for new employees to help quickly get them up to speed. This could include welcome emails or letters, an onboarding timetable, initial paperwork including an employee handbook, all relevant company policies, personal details and tax forms, and information about company benefits. It should also include documents or processes for any initial training on the role or internal tools, technology, or software.Store data securely – All HR data and information should be stored in one central and secure location.
  • Carry out performance reviews – Employee growth and development is key to your business’s success. Creating a system whereby employee performance reviews are incorporated into your business’s routine can help keep employees motivated and focused, encouraging them to develop their skills and boosting your business’s productivity and efficiency.
  • Outsource HR – If HR responsibilities are taking up too much of your team’s time, it may be beneficial to outsource them to a specialist HR service. This then allows your internal team to focus on more strategic HR activities.


How to manage HR in a small business with People Based Solutions

Here at People Based Solutions, we are committed to helping small businesses grow by taking care of their HR needs.

When you outsource your small business’s HR requirements to our team of experts, you will receive fast and efficient HR services at cost-effective prices. We offer three service levels, allowing you to choose a solution that meets your business needs and budget. Whether you require help with employment contracts, HR policies, or employee disputes, our team are here to help. We operate nationally, however our local knowledge is based on experience in dealing with certain areas of work to help with Health and Safety at your Warrington workplace. We can also travel around small businesses in Warrington, Liverpool, Manchester and beyond to cover our training and inductions.

For more information about our HR services for small businesses, call our team on 01925 202 217.

People Based HR