1. Establish Clear Hiring and Onboarding Processes
Why It Matters:
Hiring mistakes are expensive—up to 30% of the employee’s annual salary, according to the U.S. Department of Labor. Add in poor onboarding, and you risk losing new employees in the first 90 days.
What You Can Do:
- Write job descriptions with clear expectations and success metrics
- Use consistent interview questions and scorecards to reduce bias
- Set up a lightweight ATS or use Google Forms to track applicants
- Provide an onboarding checklist with tasks, training, and timelines
- Assign a buddy or mentor for each new hire
Tool to use: [Hiring & Onboarding Checklist – Small Business]
Even a basic onboarding system can increase retention by 50% and boost productivity.
2. Stay Compliant with Employment Regulations
Why It Matters:
Small businesses are just as liable as large employers when it comes to federal, state, and local labor laws. And noncompliance isn’t just risky—it’s expensive.
In 2023, small businesses faced over $7 billion in wage and hour violation penalties, many of which were due to improper employee classification, inadequate documentation, or untracked labor law changes.
What You Can Do:
- Properly classify W-2 employees vs. 1099 contractors
- Comply with wage, PTO, and leave laws in your state
- Store labor law posters and employee files digitally
- Complete and retain I-9s for every hire
- Conduct a quarterly mini-HR audit
Tool to help: [HR Compliance Checklist – Small Business]
Blog to read: [Avoiding Compliance Pitfalls]
If you don’t have an HR team, having a checklist is the next best thing.
3. Offer a Competitive Benefits Package
Why It Matters:
Your employees compare your benefits to those of their friends, family members, and LinkedIn connections. If your offering is outdated, you’ll lose candidates, especially younger or mid-career professionals.
A recent MetLife study found that 73% of employees would stay longer if offered better benefits, even if the salary remained the same.
What You Can Do:
- Explore affordable healthcare options like QSEHRAs
- Offer retirement options like SEP IRAs or SIMPLE IRAs
- Provide wellness perks like mental health access, gym stipends, or time off
- Offer performance bonuses or spot rewards
- Regularly survey employees to ask what they value most
Small businesses offering flexible, meaningful benefits report 20% higher employee satisfaction and retention rates.
4. Prioritize Employee Development and Growth
Why It Matters:
Even in small companies, team members want to know: What’s next for me here?
Lack of career development is one of the top 3 reasons employees leave small companies. But offering development doesn’t require a huge budget—it involves intention.
What You Can Do:
- Offer online course stipends (e.g., $300 per year per employee)
- Host monthly lunch-and-learns or peer skill-sharing sessions
- Promote internal mobility (e.g., field technician → crew lead)
- Assign mentors or job shadowing for high-potential employees
- Tie development to annual reviews or career check-ins
Stat: Businesses with internal mobility programs retain employees twice as long as those without.
5. Build and Reinforce a Healthy Workplace Culture
Why It Matters:
Culture is what your employees say about your business when you’re not in the room. It impacts morale, engagement, referrals, and your reputation in the local talent market.
A Gallup study found that companies with strong cultures see 33% higher revenue and 50% less absenteeism.
What You Can Do:
- Define and communicate your company values (don’t just put them on a wall)
- Recognize team wins regularly—verbally, with notes, or team shout-outs
- Schedule 1:1s every quarter to give and receive feedback
- Plan one team-building or appreciation activity per month (even simple ones)
- Lead with transparency—share wins, setbacks, and goals
Blog to explore: [Workplace Culture Matters]
Example: One small commercial cleaning business cut turnover in half simply by holding monthly “breakfast briefings” where employees could share ideas and give feedback.
6. Use Simple HR Tech to Stay Organized
Why It Matters:
You can’t scale HR on spreadsheets forever. Manual processes lead to inconsistent hiring, misfiled records, and missed compliance deadlines.
Digital HR tools save time, enhance data security, and simplify the onboarding, management, and support of your employees.
What You Can Do:
- Use platforms like Gusto, BambooHR, or Homebase for payroll + time tracking
- Set up a shared HR folder (Google Drive or Dropbox) for all policies and forms
- Track performance reviews in a structured doc or HRIS
- Automate new hire paperwork (e-signatures, direct deposit, etc.)
- Create templates for job offers, policies, and terminations
Helpful read: [HRIS vs. ATS – What Small Businesses Need to Know]
You don’t need all-in-one enterprise tools—start with tools that save you hours, not just dollars.
7. Retain Your Best People with Recognition and Flexibility
Why It Matters:
According to LinkedIn’s 2023 Workforce Report, employees who feel recognized are 63% more likely to stay at their job for the next year. Recognition and flexibility are key levers for employee retention.
What You Can Do:
- Celebrate work anniversaries and personal milestones
- Offer extra PTO or gift cards for above-and-beyond performance
- Implement a peer recognition program (even a weekly shout-out)
- Be flexible with scheduling when life happens
- Give top performers growth paths—even if it’s not a title change
Real example: A small HVAC company reduced technician turnover by 40% by adding monthly performance incentives and recognizing employee birthdays publicly.
Conclusion: Small HR Systems, Big Results
A well-run HR strategy doesn’t require a department—it just requires consistency.
By creating simple systems across hiring, compliance, retention, and team development, you create stability. That stability helps you grow faster, reduces surprises, and enables you to compete with larger employers for top talent.
The truth is: doing nothing is the most expensive option.
Next Steps
- Download your [HR Compliance Checklist]
- Complete the [5-Step HR Audit – Small Business]
- Ready to improve your HR strategy? Start here: [targeted-hr.com/contact]
👤 About the Author
Christian Hicks is the founder of Targeted-HR and a trusted advisor to small business owners in construction, manufacturing, and other hands-on industries. He specializes in helping companies without in-house HR navigate complex challenges—from compliance and workforce policies to sourcing and hiring the right candidates. Through proven checklists, audits, and strategy frameworks, Christian equips growing teams with the tools they need to lead with confidence.