You Don’t Need HR… Until You Really, Really Do!
The Hidden Costs of DIY People Management
If you’ve ever fired someone with just a quick conversation, you may have already broken UK law.
A blunt way to start—but for many business owners, it’s a painful truth they only learn after the damage is done.
The Myth: “We’re Too Small to Need HR”
When you’ve got a lean team, every penny counts. And let’s be honest—HR can sound like corporate overkill.
One bad apple in 10 is 10%.
One in 100 is 1%.
However small or big your barrel — people problems grow.
Handbooks, policies, procedures... when you’re juggling cash flow and client deadlines, who’s got time to write a grievance policy?
So, you wing it.
You hire on gut instinct. You handle issues over coffee. You trust your judgment and assume common sense will prevail.
And often, it works.
Until it doesn’t.
The Real Cost of Getting It Wrong
Let’s say you’ve got an underperforming employee. After months of frustration, you sit them down, have a blunt chat, and ask them to leave.
Simple? Maybe.
But without a process? That’s potentially:
£20,000+ in tribunal compensation
Time lost gathering documents you never created
A shattered team culture watching how exits really happen
A blow to your reputation (and possible bad online reviews)
Sleepless nights, legal fees, and that sick-to-your-stomach feeling
It’s never the cost of the mistake—it’s the cost of fixing the mistake that stings.
HR Isn’t About Bureaucracy—It’s About Protection
Here’s the thing: You don’t need HR in the way big corporates do. You don’t need layers of red tape or a full-time Head of People.
But you do need:
Contracts that protect you
A fair process for disciplinaries and dismissals
Clear policies that reduce “I didn’t know” excuses
Documentation that stands up in court (if it ever gets that far)
A safe pair of hands to ask: “Can I say this?” before you do
Think of it like insurance for your business culture, cash, and peace of mind.
A Little Structure Goes a Long Way
You don’t need a full time and full-blown HR team.
You just need the basics, done properly, before a problem lands in your lap.
Even simple systems can:
Save you thousands in legal risk
Boost employee trust and retention
Make hiring faster and less stressful
Free up your time to focus on growth
And when something does go wrong?
You’ll already have the groundwork to handle it legally, fairly, and without drama.
So… Are You Winging It?
If you’re relying on memory, gut feel, or Google for people management—you might be one incident away from a costly lesson.
Let’s fix that and use our compliance confidence kit, avoid confusion and protect yourself without overkill.