5 HR Tasks Small Business Owners Should Never Skip

Running a small business comes with a never-ending list of priorities, and HR can easily fall to the bottom of the list. But skipping certain HR tasks can create serious risks, and even legal trouble, down the road. Here are five foundational HR tasks every small business should complete, no matter how small your team is.

1. Create a Legally Compliant Employee Handbook
A handbook protects your business, sets expectations, and ensures every employee receives the same information. It also outlines policies around attendance, conduct, safety, and more.

2. Properly Classify Employees
Misclassifying employees as contractors or exempt vs. non-exempt can trigger audits and fines. Make sure your classifications are correct before hiring.

3. Document Employee Performance Issues
Even for small teams, documentation is essential. Written notes help you stay consistent and protect your business if an employee situation escalates.

4. Maintain Accurate Employee Files
Keep updated I-9s, new hire paperwork, emergency contact forms, performance notes, and signed policies.

5. Stay Up-to-Date on Labor Laws
Employment laws change frequently, and every business, even those with just one employee, must comply. When in doubt, ask an HR professional who can help guide you.

Need help staying compliant?
Moxie HR Consulting provides ongoing HR support for small businesses across the U.S.