In this article, we’ll learn more about HR requirements for a small business and the importance of HR policies. If you need any HR help for your small business, please get in touch today, our HR specialists will be happy to offer their professional advice!

If your small business does not yet have an HR department, this doesn’t free it from the various HR obligations of running a business.

Human resources (HR) covers a variety of duties that extend well beyond employee relations management. It also includes training and development, company policy creation, and legal compliance.


What HR requirements does a small business have?

HR requirements for a small business or a large one should be omnipresent. At first, small business owners may be able to manage these requirements themselves; however, as the workforce expands, the complexity and volume of its HR requirements also grow.


HR policies for small businesses requirements can include any or all of the following:

  • HR company policies and employee handbook
  • Recruitment
  • Employee policies and benefits
  • Payroll
  • Onboarding and offboarding
  • Performance reviews
  • Company culture management
  • Attendance monitoring
  • Legal compliance
  • Training and development


Given the scope of HR requirements for a small business, it’s easy to see how small businesses operating without a dedicated HR team can quickly become overwhelmed. Small business owners and other employees can find their time increasingly taken away from their core roles as the business’s HR requirements increase.


Why are HR policies for small businesses important in the UK?

If there’s one must have HR requirement for a small business, it’s HR policies. HR policies are crucial for keeping business operations running smoothly, no matter the industry or size of the company.

Let’s look at some key reasons HR policies are so important for small UK businesses:

Legal compliance UK employment law is continually evolving. Implementing HR policies helps small businesses to comply with important legislation on matters like worker’s rights, health and safety, and equal opportunities in the workplace.

Risk mitigation – Businesses reduce the risk of running into legal disputes by using HR policies to set out clear guidelines and procedures for issues like absence management, data protection, and health and safety.

Sets expectations – Clear and concise HR policies set the expectations for employee and management’s behaviour, creating a transparent work environment where everyone understands their roles, rights, and responsibilities.

Consistency – HR policies provide a standard framework for managing staff. This consistency helps to ensure that all employees are treated fairly and equally.

Business culture – Effective HR policies should reflect your business’s culture and values. They should communicate what the company stands for and its view on important issues to help create a harmonious and positive workplace culture.

Reputation – A company’s reputation can be significantly influenced by its HR policies. Businesses with fair and well-defined HR policies are more likely to attract and retain top talent.


How can People Based Solutions help with HR requirements for a small business?

Here at People Based Solutions, we are a Warrington-based business offering cost-effective, outsourced HR services to small and medium-sized businesses.

No matter how big or small your small business’s HR requirements are, our team have the perfect HR support package for you.

We offer a range of HR service, from HR advice, to HR software, to Holiday entitlement Calculators. For more information about our HR services or to discuss your requirements, call our team on 01925 202 217 or email

People Based HR