You Don’t Need 40 Policies — You Need the Right 6
A lot of small businesses avoid policies because they sound “too corporate”.
But policies aren’t about paperwork.
They’re about fairness, clarity, and protecting your time.
Without policies, you usually end up with:
- inconsistent decisions
- awkward conversations
- conflict (“that’s not fair”)
- stress for managers and owners
The best time to create simple policies is before you need them.
The 6 HR Policies to Put in Place First
1) Sickness & Absence Policy
This reduces confusion and helps you manage patterns fairly.
Include:
- how to report sickness
- sick pay basics
- return-to-work chats
- triggers for frequent absence
2) Holiday / Annual Leave Policy
Leave becomes messy quickly without rules.
Include:
- how far in advance leave is booked
- approvals and busy periods
- carry-over rules
- leave during notice periods
3) Disciplinary & Grievance Policy
You need a clear process for:
- behaviour issues
- misconduct
- repeated lateness
- complaints/disputes
A simple structure keeps decisions consistent and reduces emotional reactions.
4) Equality + Anti-Bullying / Harassment
This sets behaviour standards early.
It also gives people a clear way to raise concerns safely.
5) Flexible / Hybrid Working Guidelines
Flexible working is normal now.
Fairness matters.
Include:
- working hours / availability
- communication expectations
- equipment and data security
- how requests are handled
6) Data Protection & Confidentiality
Small businesses often overlook this until it becomes urgent.
Include:
- handling employee/customer data
- password and device expectations
- confidentiality around clients and internal info
Why HR Support Matters Here
You can find templates online.
But HR support helps you implement policies properly, not just download them.
That matters because:
- your policies match your business (not generic wording)
- managers act consistently
- you reduce the risk of conflict escalating
- you protect the business without becoming bureaucratic
Policies You Can Add Later
We have a policy library of over 70 compliant policies with the new Employment Rights act 2025 that we can discuss and that you can add as your business grows.
Do you need a Small Business HR Starter Policy Pack? Contact us on 07984 568523 and we’ll send it across to you.
FAQ: First HR Policies for Small Businesses
What HR policies does a small business need first?
The essentials are: sickness/absence, holiday/leave, disciplinary & grievance, equality/anti-bullying, flexible working, and data protection/confidentiality.
Do I need HR policies if I only have a few employees?
Yes. Policies help you stay fair and consistent, even in a small team. They also reduce the risk of conflict and confusion when issues arise.
Can I just use free policy templates online?
You can, but templates often don’t fit your business properly. HR support helps tailor policies to your culture and ensures they’re practical, compliant, and easy to follow.
What happens if I don’t have HR policies in place?
You’ll likely end up handling decisions inconsistently, which can lead to employee complaints, conflict, and increased legal risk — even when you’re doing your best.
How often should HR policies be updated?
At least annually, or whenever you introduce new working practices (e.g., hybrid working), expand headcount, or update benefits and processes.
