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GuideJune 2026·6 min read

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.