Top 5 HR Mistakes Small- Medium Businesses Make – And How to Fix Them

Running a small business is a lot of work. It is not a joke. It takes a lot of time, energy, dedication, and determination. Between sales, services, and costly problems. As an HR Consultant working with people in small and growing businesses, I hear and read about the same issues that keep popping up over and over again.

Here are the top 5 HR mistakes I hear and read about- and more importantly how to fix them.

❌ 1. Not having Clear Job Descriptions

The mistake: Hiring someone without clearly outlining what their role includes.

The fix:Create detailed, well-structured job descriptions that include:

• Role responsibilities

• Required skills/experience

• Reporting structure

• Work environment (remote, in-person, hybrid)

📌 Job descriptions set expectations from day one for both the employer and the employee and make hiring, onboarding, and performance management easier with a clear understanding.

❌ 2. Outdated or No Written Policies or Procedures

The mistake: Relying on “common sense” instead of formal policies.

The fix: Develop a basic Employee Handbook or policy guide that includes:

• Workplace conduct

• Vacation/sick leave

• Health & safety

• Discipline procedures

📌 Written policies protect both you and your team — and show professionalism.

❌ 3. Not Keeping Up with Employment Law

The mistake: Not knowing the latest updates to employment standards in Ontario (or Canada in general).

The fix:Stay informed or partner with an HR professional who knows:

• ESA updates (Employment Standards Act)

• Pay transparency rules

• Termination/pay in lieu regulations

📌 Non-compliance can lead to fines or legal trouble. A little prevention goes a long way.

❌ 4. Poor Onboarding (or No Onboarding at All)

The mistake: Hiring someone and hoping they “figure it out.”

The fix: Create a simple onboarding process that includes:

• A welcome checklist

• Training plan

• Introductions to the team

• First-week goals

📌 Good onboarding boosts employee confidence, performance, and employee retention.

❌ 5. Ignoring Employee Concerns or Performance Issues

The mistake: Letting small problems grow into big ones.

The fix: Have regular check-ins, document performance, and address issues early. Be clear, fair, and consistent.

📌 Dealing with issues without hesitation protects your workplace culture and your reputation.

✅ Final Thoughts

HR doesn’t have to be so overwhelming. With a few of these systems in place, you’ll be ready to grow your business — with less stress and more structure.

As a consultant, I help small and medium business owners put those systems in place, so they can focus on what they do best.

🔗 Need help avoiding these HR pitfalls?

Let’s chat! I’d love to help you build the HR foundation your business deserves.

📅 Book a free consultation here!