5 HR Mistakes Small Businesses Make (and How to Avoid Them)

When you're growing a small business, it’s easy to overlook the importance of HR. But even small oversights can lead to costly problems down the line. At CocoHRPA, we support businesses in getting their HR right from the start.

Here are five common HR mistakes and how to avoid them:

1️⃣ No Written Employment Contracts

Many small businesses rely on verbal agreements—but did you know it's a legal requirement to provide a written statement of terms on or before an employee’s first day?

Tip: Use a simple, legally compliant contract template tailored to your role and industry. CocoHRPA can help you build one that protects both you and your staff.

2️⃣ Not Having Clear HR Policies

Policies like absence reporting, anti-bullying, data protection, and grievance procedures aren’t just “nice to have”—they set expectations and protect your business if issues arise.

Tip: Start with the essentials. CocoHRPA offers editable, branded policy templates designed for small businesses and alternative education providers.

3️⃣ Ignoring Employee Issues

Avoiding awkward conversations can make problems worse. Delays in handling performance, conduct, or conflict can damage morale—and sometimes end in tribunals.

Tip: Tackle issues early with support. We offer confidential HR advice to help you navigate sensitive situations with confidence.

4️⃣ Misclassifying Staff

Hiring freelancers or zero-hour workers? Be sure you're classifying them correctly—HMRC takes misclassification seriously and it can trigger investigations or fines.

Tip: We’ll help you clarify employment status and set up the right agreements from the start.

5️⃣ Not Seeking Help Early

Many business owners only contact HR support when there’s a serious problem. But proactive HR advice prevents issues and saves money in the long run.

Tip: With CocoHRPA, you get access to support that grows with your business—whether you need one-off advice or ongoing consultancy.

🤝 Your HR Partner

CocoHRPA exists to take the pressure off small business owners. We offer flexible, affordable HR and PA support—so you can focus on growing your business, not managing paperwork or policies.

📧 Need support? Contact us today at www.cocohrpa.co.uk

Tel:  07585 959442

Claire

Coco HR Consultancy & PA Services

www.cocohrpa.co.uk

Tel:  07585 959442