Managing a team can be one of the most rewarding parts of running a business, but it can also take up a significant amount of your time. For owners and managers of small (to medium-sized) businesses, people management and HR often sit alongside sales, finance, operations and business development. Knowing how to manage staff effectively, as well as dealing with HR issues, can therefore make a real difference to productivity, employee engagement and your own workload.
You do not need a large HR department to create a well-managed workplace. Clear expectations, regular communication, fair processes and appropriate support can give you a strong foundation. When an issue becomes more complex, external HR support can also give you access to specialist advice without the cost of employing a full-time HR professional.
So, here is our guide to effectively managing staff in a small business.
Set clear expectations from the beginning
Employees need to understand what their role involves, what you expect from them and how their performance will be assessed.
Start with a clear job description and make sure responsibilities, reporting lines and objectives are understood and agreed. It’s always best to discuss priorities during recruitment and onboarding rather than assuming a new employee will work everything out for themselves.
Expectations should cover more than job duties. Explain working hours and location(s), communication standards, absence reporting, company policies and behavioural expectations.
Revisit expectations as roles change. A small business can evolve quickly, meaning responsibilities that were appropriate six months ago may no longer reflect what the employee needs to deliver, or the support they need to do so.
Regular, consistent communication is essential
When considering how to manage staff in a small business effectively, communication should be high on your list. Poor communication can often be the cause and/or catalyst for further HR issues, and many can be solved or avoided early.
Regular one-to-one meetings allow employees to discuss workload, priorities, development and any concerns. They also give managers an early opportunity to identify problems before they become more difficult to resolve.
Keep communication proportionate to your business. A weekly one-to-one may work well for some teams, while fortnightly meetings may be better for others. The important point is to make conversations consistent rather than only speaking to employees when something has gone wrong, and remember that communication is a two-way street.
Be clear when communicating changes, too. If you are changing working arrangements, responsibilities, targets or processes, explain what will be different and why, and what employees need to do.
Keep HR policies and processes accurate
HR policies provide a framework for managing employees consistently. They can cover areas such as sickness absence, holidays, flexible working, disciplinary procedures, grievances, family leave, equality and workplace behaviour.
Medium sized and small businesses should regularly review their policies rather than creating them once and leaving them untouched. Employment law changes, and your business must also change as it grows.
Employers have a duty to provide employees and workers with a written statement of employment particulars setting out key employment terms. GOV.UK explains what this statement must contain and when it must be provided.
An HR Audit service can help identify gaps in your contracts, policies and HR processes before they become problems.
Provide constructive, fair feedback
A big part of knowing how you manage staff is providing feedback, and it works best when it forms part of normal management rather than appearing only during an annual review.
When an employee performs well, explain what they did effectively and why it mattered.
When something needs to improve, address it promptly and focus on the behaviour or outcome rather than making it personal. For more guidance, see our advice on key performance management tips for small businesses.
A useful conversation should explain:
- What happened
- Why it matters
- What needs to change
- What support or training may be required
- When you will review progress.
Keep a record of significant conversations, particularly where performance concerns continue. This gives both the manager and employee a clear reference point. If necessary, make sure an HR professional is present, and remember that employees can also have a work companion or trade union representative present during a grievance or disciplinary meeting.
Deal with performance and disciplinary issues fairly
Poor performance or misconduct can be uncomfortable to address, particularly when you work closely with a small team. Avoiding the issue rarely makes it disappear.
Start by establishing the facts. Make sure the employee understands the concern and has an opportunity to respond. Where appropriate, consider whether additional training, clearer expectations or other support could resolve the issue.
If formal action becomes necessary, follow your company’s disciplinary procedure and apply it consistently. ACAS recommends a fair process that includes appropriate investigation, an opportunity for the employee to respond and a reasonable decision based on the circumstances.
Do not rush into dismissal or disciplinary action because you are frustrated. Employment matters can carry legal and financial consequences, so seek professional advice if you are uncertain about the appropriate process. We offer performance management support and can help small businesses establish practical processes for dealing with underperformance.
Support employee physical and mental wellbeing
Employee wellbeing should form part of everyday management rather than being treated as a separate initiative.
Start by paying attention to workload, working patterns, relationships and the working environment. Ask employees how they are managing and create an environment where they can raise concerns before problems escalate.
The Health and Safety Executive’s Management Standards identify areas including demands, control, support, relationships, role and organisational change as factors that can contribute to work-related stress.
Practical measures might include reviewing workloads, encouraging employees to take breaks and annual leave, providing appropriate equipment, considering flexible working where possible and making reasonable adjustments when needed.
MJV Consulting also provides workplace wellbeing services covering areas such as mental health support, work-life balance and physical wellbeing, to help SMEs in the South East create supportive places to work.
Know when to seek HR support
You do not need to wait until a serious employee relations issue develops before asking for help.
Consider seeking HR advice if you are dealing with:
- A disciplinary or grievance
- Persistent underperformance
- Long-term or complex absence
- A proposed dismissal or redundancy
- A disagreement involving an employee
- A request that could involve discrimination or reasonable adjustments
- A significant change to contracts, working arrangements or organisational structure
- Uncertainty about whether your current policies are legally compliant
Getting advice early can help you understand your options and avoid mistakes. It can also save considerable management time when you are already responsible for running the wider business.
The benefits of external HR support for small to medium-sized businesses
As an SME owner, how do you manage your staff? For some, employing a full-time HR manager may not make financial or operational sense. But that does not mean you have to manage every HR issue alone.
External HR support gives you access to specialist knowledge when you need it. Depending on your requirements, that could mean reviewing your HR documentation, advising on a specific employee issue, supporting a disciplinary process or providing ongoing people management guidance.
MJV Consulting offers ad-hoc HR support for businesses that need advice without a long-term commitment. For companies that want ongoing access to an HR professional, retained HR support provides continuing guidance for a fixed monthly fee.
This flexibility can be particularly useful for businesses across Sussex, Surrey, London and the wider South East where owners and managers need practical support but do not have an internal HR function.
Get HR support when you need it
Knowing how to manage staff effectively does not mean having every answer yourself. Good people management comes from setting clear expectations, communicating consistently, maintaining appropriate HR processes, addressing issues fairly and taking employee wellbeing seriously.
For small to medium-sized businesses, external HR support can provide an experienced sounding board when an issue falls outside your expertise or takes more time than you can spare. We support small businesses across Sussex, Surrey, London and the South East with practical HR advice, compliance support and people management services.
If you would like help with knowing how to manage staff effectively, contact MJV Consulting or book a free discovery call to discuss your business.
What should you consider before outsourcing HR?
Outsourcing HR does not mean handing over every people-related responsibility. Before choosing a provider, consider which tasks you actually need help with.
Start by reviewing your current HR function. Are your contracts and policies up to date? Do managers know how to handle disciplinary or grievance matters? Are employee records organised? Are you confident that your recruitment and onboarding processes meet current requirements?
Next, consider the level of support you need. A business dealing with regular employee relations matters may benefit from a retained arrangement, while a company that only encounters occasional HR issues may prefer ad-hoc advice.
You should also establish who will manage the relationship internally. Even with an outsourced HR provider, someone within the business needs to communicate with the consultant, make decisions and ensure agreed actions are implemented.
Finally, check the provider’s experience and approach. Look for a consultancy that understands small businesses in the context of the South East economy, and can explain employment law in practical terms rather than simply providing lengthy technical advice.
What HR functions cannot be outsourced?
Some HR activities can be delegated, but the ultimate responsibility for employing people remains with the business.
For example, an HR consultant can advise on recruitment compliance, but the employer remains responsible for making sure required checks are completed. All employers have responsibilities around areas including employment contracts, minimum wage, workplace safety, discrimination, payroll and workplace pensions. In that regard, implementation of any HR support still needs to be carried out internally.
Similarly, an external HR consultant can recommend how to approach a disciplinary procedure, but the employer remains responsible for making the final management decision.
This distinction matters because outsourcing provides expertise and support. It does not transfer legal responsibility for being an employer. So if you need help understanding what HR functions should not be outsourced, contact us today.
When should you seek external HR support?
You do not need to wait for a serious employee problem before getting help.
A growing workload is often an early warning sign. If managers are spending increasing amounts of time dealing with HR administration, that time could be better spent running the business.
You should also consider external support if:
- You are employing your first few members of staff and are unsure whether your HR foundations are adequate.
- Your employment contracts or policies have not been reviewed or updated for several years.
- You are dealing with a disciplinary, grievance or long-term absence issue.
- Managers are handling similar employee situations differently.
- You are planning redundancies, restructuring or significant organisational change.
- Employment law changes are making it difficult to keep your processes up to date.
- You need HR expertise but cannot justify hiring a full-time HR professional.
- An existing HR employee needs additional specialist support or capacity.
MJV Consulting’s HR consulting services for small businesses are designed for exactly these situations, providing support that adapts as a company grows.
The value of external HR support for small businesses
Outsourcing gives small businesses a way to access professional HR expertise without creating a large internal function. It can help reduce the administrative burden on owners and managers, improve HR processes and provide experienced guidance when employee issues become more complicated.
It also gives businesses somewhere to turn when an unexpected problem arises. Having an established HR partner can make it easier to get advice early rather than trying to resolve an issue after it has already escalated.
For small businesses across Sussex, Surrey, London and the South East, choosing what HR functions can be outsourced will largely depend on your circumstances, but there is considerable scope to bring in external expertise. If you need help reviewing your current HR arrangements or deciding which areas to outsource, contact us or book a free discovery call with MJV Consulting.
