5 HR Mistakes Small Business Owners Make (and How to Fix Them)

Running a small business is stressful enough without HR headaches. Yet many owners accidentally create people problems by overlooking the basics. Let’s break down the top five mistakes — and how you can dodge them.

1. No Written Contracts

Skipping contracts might feel easier in the short term, but it leaves you wide open if things go wrong.
🩺 HR Fix: Even a simple employment contract sets clear expectations and keeps you legally safe.

2. Ignoring Probation Periods

Many owners see probation as a “nice to have” rather than a key checkpoint. That’s how you end up keeping the wrong hire.
🩺 HR Fix: Use the probation period properly — set clear goals, review progress, and act quickly if it’s not working.

3. Holiday Chaos

“Can I take next week off?” “Who’s already away?” Cue panic. Without a clear holiday process, staff and managers end up frustrated.
🩺 HR Fix: Put in a simple booking system (even a shared calendar works) and agree rules on notice periods.

4. No Clear Policies

Think of policies as your rulebook. Without them, you’re making it up on the fly — which usually ends in inconsistency (and complaints).
🩺 HR Fix: Start with the essentials: absence, disciplinary, grievance, and flexible working. You can add more later.

5. Avoiding Difficult Conversations

We get it — tricky conversations are uncomfortable. But burying issues means they usually explode later.
🩺 HR Fix: Be direct, be kind, and deal with things early. Most staff would rather know where they stand.

Final Thoughts

You don’t need a corporate HR department to run your business smoothly. Get the basics right, and you’ll save yourself endless stress down the line.

✨ Want more? That’s exactly why I created The HR Mastermind — my 90-day programme designed to give small business owners the confidence and tools to manage people without the drama.