HR Policies Your Small Business Actually Needs (And Which Ones Can Wait)
Because you don’t need a 50-page policy manual to run a great team.
One of the first questions small business owners or new HR leads ask is:
“What policies do we actually need?”
They’ve seen the big-company handbooks. The 100-page manuals. The weirdly formal policies that sound like they were written by a committee from the 1980s.
But here’s the truth:
In a small business, HR policies should be lean, clear, and only as complex as they need to be.
You don’t need every policy under the sun. But there are a few you can’t afford to skip — and a few others that can wait until your team grows.
Let’s break it down.
Section 1: Why Policies Matter (Even for Small Teams)
You might think:
“We’re just five people — do we really need policies?”
“I trust my team, so it feels unnecessary.”
Totally fair. But policies aren’t about micromanaging.
They’re about:
Protecting the business
Creating consistency
Helping your people know where they stand
Think of policies as guardrails, not handcuffs.
They provide clarity. And clarity builds trust.
Section 2: The 5 Policies Every Small Business Should Start With
Here are the ones you actually need early on — especially if you have employees on payroll.
1. Leave Policy
Explain:
How much annual leave people get
How it’s requested and approved
Whether you allow carryover or encashment
Sick leave, family responsibility leave, and unpaid leave
💡 Keep it simple. People just need to know the rules and how to ask.
2. Code of Conduct / Behaviour Guidelines
Clarify:
Basic expectations for professionalism, communication, punctuality
What’s okay and what’s not — without overkill
Reference to disciplinary steps (link to policy)
💡 Helps avoid awkward “we didn’t know” situations later.
3. Disciplinary Policy
Even if you’re informal, you still need a clear, fair process.
Include:
What counts as misconduct
How investigations are handled
What steps are taken (warnings, hearings, etc.)
Right to respond or appeal
💡 This protects both the business and the employee.
4. Grievance / Complaints Policy
How can someone raise an issue?
Who do they talk to?
What happens next?
💡 A policy like this shows your team you’re serious about fairness.
5. Remote Work or Hybrid Guidelines (if applicable)
If people work from home, even occasionally, it’s worth covering:
Availability expectations
Communication tools and boundaries
Equipment or data reimbursements
💡 Helps avoid miscommunication and “I thought I could just…” scenarios.
Section 3: Nice-to-Haves (That Can Wait)
You don’t need all of these on day one — but consider them as your team grows:
📁 Performance management policy
📁 Promotion or salary review policy
📁 Dress code
📁 Data protection / email usage
📁 Conflict of interest policy
📁 Social media policy
📁 Drug/alcohol policy (if relevant to your environment)
💬 Rule of thumb:
If it hasn’t caused problems yet, or only applies to one scenario — park it until needed.
Section 4: Keep It Readable (Please!)
Most HR policies fail not because they’re bad — but because no one reads them.
Keep yours:
Short (2–3 pages max per policy)
Clear (no legal jargon)
Accessible (shared folder, printed if needed)
Living documents (review them at least annually)
Section 5: Don’t Overthink the Format
You don’t need a lawyer to draft every policy.
You need clarity, consistency, and a structure that grows with your team.
Start with:
A title
Purpose of the policy
Scope (who it applies to)
Guidelines or rules
What to do / who to contact
That’s it. Done is better than perfect.
Final Thoughts: Policies Don’t Make You Corporate — They Make You Clear
If your team knows what’s expected — and what to expect — you’ll avoid 90% of HR headaches.
So don’t wait until something goes wrong to put policies in place.
Start with the five that matter.
Build the rest when you need them.
And keep it human, always.
