What Happens When HR Is Just the Owner Winging It?
The Risks of No HR Structure—And How to Fix It Without Losing Your Mind
If you own a small business, chances are you didn’t start it because you love HR.
Maybe you’re running a café, a mechanic shop, a retail store, or a construction company—whatever it is, your passion is in the work, not in tracking employee paperwork and labor laws.
So, like many small business owners, you’ve been winging it.
Need to hire someone? Post on Facebook or Indeed and hope for the best.
Employee issue? Handle it case by case, based on gut instinct.
Time-off requests? Whatever seems fair at the moment.
And let’s be honest—this works… until it doesn’t.
The problem with the "we’ll figure it out as we go" approach is that it can turn into a mess overnight. One misunderstanding, one bad hire, or one legal issue, and suddenly your lack of structure isn’t just inconvenient—it’s a liability.
Let’s talk about why flying by the seat of your pants is risky—and how to put simple, effective HR policies in place (without turning into a corporate robot).
When There Are No Rules, Everything Feels Personal
Small businesses are tight-knit. Your employees aren’t just workers—they’re people you know, like, and probably see outside of work.
So when an issue comes up, and there’s no written policy, what happens?
Someone asks for time off → If there’s no clear PTO policy, every request feels like a favor instead of a process.
Someone gets a raise, and someone else doesn’t → Without a clear pay structure, people assume it’s based on who you like more.
An employee needs to be disciplined → If there’s no consistent approach, it feels personal and unfair.
Employees need to know where they stand. Without clear policies, decisions feel random, emotional, or biased—even if they aren’t.
Fix it: Even a basic, one-page policy guide can set expectations and prevent drama. You don’t need a 50-page handbook to establish fair, consistent rules.
No Policies = A Lawsuit Waiting to Happen
A lot of small business owners assume that because they’re small, they can fly under the radar.
Not true.
An employee gets fired and files a claim for wrongful termination. Do you have documentation to back up why you let them go?
A team member quits and says they were never paid overtime. Do you have clear payroll records?
Someone files a harassment complaint. Do you have a process for investigating it?
Here’s the hard truth: The government does not care that you’re a small business. Labor laws apply to you whether you have 3 employees or 300.
Fix it: You don’t need corporate-level policies, but you do need some basic protections:
✔ Clear job classifications (employee vs. contractor).
✔ Fair discipline & termination process (so you don’t get accused of bias).
✔ Anti-harassment policy (because this is non-negotiable).
✔ A way to document pay, time off, and job performance.
These aren’t corporate luxuries—they’re bare-minimum protections that keep you out of legal hot water.
Winging It Makes Hiring and Firing a Nightmare
Without structure, hiring is hit or miss, and firing is chaotic.
Hiring: If you don’t have a clear idea of what you need, you’ll end up with the wrong person—then have to fix it later.
Firing: If you don’t have documentation of issues, you’ll either second-guess yourself or risk a legal claim.
Fix it: You don’t need a full-blown HR department to hire well and fire fairly.
Hiring? Have a simple job description and a basic interview process.
Firing? Document performance issues before it gets to that point.
Promoting? Make sure raises and growth opportunities are based on something objective, not just gut feelings.
A little structure now saves you a huge headache later.
Employees Will Keep Coming to You for Everything
If you’re the only person who knows how things are done, guess what?
You’re also the HR department, complaint department, and decision-maker for every tiny issue.
It’s exhausting.
Employees shouldn’t have to ask you every time they need to request time off, check their pay, or understand company policies.
Fix it: Write down the most common questions & processes—even if it’s just a single document.
-How to request time off
-How raises and promotions work
-What happens if someone is late or breaks a rule
Make it clear and easy to follow—so you can focus on running your business, not answering the same questions 50 times.
How to Put HR Structure in Place (Without Losing Your Soul to Corporate Bureaucracy)
Good HR isn’t about overcomplicating things—it’s about making sure you don’t spend every day putting out fires.
Step 1: Decide What Actually Matters
What’s the #1 issue that keeps coming up? Start there.
What rules do you already follow (but just haven’t written down)?
What’s legally required in your state?
You don’t have to reinvent the wheel—but you do need to set a few clear expectations.
Step 2: Get Rid of Verbal Policies
If nobody remembers what was agreed upon… it’s not a policy.
If you have to keep making judgment calls, you need something written down.
If your policies change depending on your mood, it’s time for consistency.
Even a one-page document that says: “Here’s how we do things” can make a huge difference.
Step 3: Stop Using Random Templates
We don’t offer free HR checklists or templates, and there’s a reason for that:
One-size-fits-all policies don’t actually fit anyone.
What works for one business might be a bad idea, inadvisable or even illegal for another.
HR is customized—and you deserve more than a generic template.
That’s why we don’t just hand you a document and wish you luck. We work with small businesses to build simple, effective policies that actually work for you.
You Don’t Need a Corporate HR Department—But You Do Need a Plan
If you’ve been winging it, you’re not alone. Most small businesses start that way. But at some point, you need a little structure—not to make your life harder, but to make your business run more smoothly.
HR isn’t about corporate nonsense. It’s about:
✔ Setting expectations.
✔ Avoiding unnecessary legal risks.
✔ Making things easier—for you AND your employees.
And you don’t have to figure it out alone.
If you’re ready to put some simple, effective HR policies in place (without turning into a corporate robot)—Peopleish has your back.
