The small business HR checklist — 25 things to have in place

HR feels overwhelming when you are running a small business, but it comes down to about 25 fundamentals. Get these in place and you have covered 95% of what matters.

Hiring and onboarding (5)

• →Written employment contracts signed by every employee
• →Standard offer letter template
• →New hire onboarding checklist covering documents, system access, orientation
• →Employee handbook covering conduct, policies, and expectations
• →Verified employment eligibility documents on file

Attendance and time tracking (5)

• →Written attendance policy signed by every employee
• →GPS-verified clock-in and clock-out system
• →Geofence per work location
• →Selfie verification to prevent buddy punching
• →Weekly review of flagged attendance events

Leave management (5)

• →Written leave policy with clear entitlements and accrual rules
• →Documented approval workflow (who approves whose leave)
• →Automated leave balance tracking
• →Public holiday calendar defined
• →Team leave calendar visible to managers

Payroll (5)

• →Automated payroll integrated with attendance data
• →Defined pay structures with allowances and deductions
• →Payslip distribution via email or mobile app
• →Payroll history retained for at least 5 years
• →Overtime rules documented and applied consistently

Performance and offboarding (5)

• →Annual performance reviews for every employee
• →Goal-setting framework (KPIs or OKRs)
• →Documented progressive discipline process
• →Formal exit interview process for departing employees
• →Written termination and resignation procedures

What most small businesses miss

The most common gaps in small business HR are: no written attendance policy (verbal only, causing disputes), no formal leave balance tracking (leading to over-taken leave), and no exit process (losing knowledge and creating legal exposure). Get these three right and you avoid 80% of common HR issues.