When you’re running a small business, HR often gets left behind. You’re busy selling, building, and wearing every hat in the business but the HR piece will trip you up if you ignore it. These missteps don’t just create inefficiencies; they can lead to something serious as legal exposure. Here’s what small businesses tend to overlook and how you can fix it before it blows up.
1. No Employee Handbook
Why it matters:
An employee handbook isn’t just paperwork, it’s your playbook. Without one, expectations are vague, policies are inconsistent, and you’re wide open to miscommunication (or worse, legal risk).
Common mistakes:
Relying on “we’ll figure it out as we go” until you hit a conflict then realizing there’s no documentation to back you up.
Quick Fix:
Create a simple handbook that includes your expectations around hours, conduct, time off, harassment, and health & safety (especially relevant with Alberta’s OHS requirements). Bonus points if you include a basic onboarding checklist and your mission/values.
2. Inconsistent Hiring Practices
Why it matters:
Unstructured hiring opens you up to unconscious bias, poor job fit, and legal risk. In Alberta, even small teams must avoid discriminatory practices under the Alberta Human Rights Act.
What It Looks Like:
You hire someone based on gut feel, skip reference checks, and forget to document interview questions.
Better Way:
Use a consistent hiring process:
- Clear job description
- Structured interview questions (same for each candidate)
- A scoring system
- Offer letters that align with Alberta employment standards
Mistake to Avoid: Don’t ask illegal questions (e.g., about family, religion, or age). Yes, even casually.
3. Skipping Documentation
Why it matters:
If it’s not documented, it didn’t happen. This applies to everything from onboarding to discipline. Alberta’s Employment Standards Code expects employers to keep records for minimum three years.
What’s Often Missed:
- No written warnings or meeting notes
- No tracking of performance reviews
- No record of verbal coaching conversations
Fix It:
Use a simple system (Google Docs or HR software) to document:
- Employment agreements
- Performance feedback
- Attendance and leaves
- Training completion
Why You’ll Thank Yourself Later:
If you ever need to let someone go, you’ll need a paper trail to support your case legally and ethically.