How to Handle HR in a Small Business Without an Internal HR Team
Sep 11, 2025
How to Handle HR in a Small Business Without an Internal HR Team
Managing HR in a small business can be one of the biggest challenges owners face. Between compliance, contracts and the everyday needs of your team, it can feel like there are never enough hours in the day. If you do not have a dedicated HR person, you are not alone. Most small businesses in Australia operate without internal HR support.
In this episode of The HR Link: People-First Conversations, Amy Christopherson, founder of Grounded HR, explains how to handle HR with confidence, clarity and care. She shares practical advice on meeting your legal obligations, setting up simple systems and creating a culture that keeps your team engaged.
Why HR Feels Overwhelming in Small Business
Many small business owners wear every hat: operations, marketing, payroll and HR. Without an internal HR team, it is easy to feel stretched too thin. You may find yourself searching for Fair Work advice late at night or juggling questions from employees while trying to focus on growth.
Amy understands this firsthand. She works with countless business owners and managers who are doing their best to stay compliant but often do not know where to start. The good news is that you can manage HR effectively without hiring a full-time HR manager.
Compliance and Best Practice: Know the Difference
There are two key sides to HR: compliance and best practice.
Compliance: The Legal Minimum
Compliance covers the essentials you must do under Australian law. This includes following the Fair Work Act, applying the correct Award and maintaining accurate employee records. Every business, no matter its size, needs to meet these minimum obligations.
Best Practice: Building a People-First Culture
Best practice goes beyond the legal basics. It is about creating a values-led workplace where people feel supported, engaged and motivated to do their best work. A best practice business does not simply tick boxes; it builds trust and loyalty.
As Amy explains, “The difference between a business doing the bare minimum and one following best practice is how it feels. One is about compliance. The other is about culture.”
Setting Up Systems That Save Time and Stress
If you are handling HR yourself, systems are your best friend. They do not have to be complicated, but they do need to be clear.
Start by creating structured processes for:
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Hiring and onboarding: Ensure contracts, policies and welcome information are consistent and accessible.
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Record keeping: Store employee documents securely and in one place. Employees have a legal right to request access to their records.
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Communication: Use shared systems or checklists so you do not have to answer the same questions repeatedly.
Good HR systems reduce risk, save time and make your business more professional. Whether you use digital tools or simple checklists, consistency is key.
Finding the Right HR Support
You do not need to manage everything on your own. Having trusted HR support gives you peace of mind and ensures you are getting the right advice from the start.
Look for an HR consultant who understands small business, communicates in plain English and aligns with your values. Amy highlights that HR and legal professionals serve different purposes. HR specialists focus on people, systems and culture, while lawyers focus on legal interpretation and risk. Both are important, but your HR partner should help you apply compliance practically within your business.
“Find someone who knows your business and your people. The right HR partner makes you feel calm, confident and supported.”
Balancing Compliance and Culture
Succeeding in HR is not just about staying out of trouble. It is about building an environment where your people thrive. The strongest small businesses are those that combine compliance with care.
When your employees feel valued, supported and connected to your purpose, they are more likely to stay, perform well and contribute to your growth.
By putting people at the centre of your HR decisions, you move from simply managing compliance to leading with culture.
You Do Not Need an HR Department to Get HR Right
With the right advice, simple systems and a people-first mindset, small business owners can lead confidently and compliantly without an internal HR team.
Grounded HR’s The HR Link is designed exactly for this purpose. It helps Australian small businesses access qualified HR support that is flexible, affordable and genuinely human.
If you want to lead with heart, strengthen your team and reduce HR overwhelm, The HR Link could be the supportive partner your business needs.
Free Resources for Small Business Owners
Grounded HR offers a range of free tools to help you get started:
Learn more about how to lead with a people first approach to HR through our The HR Link: People-First Conversations Podcast is available on Spotify, Apple Podcasts, and YouTube.
Follow Grounded HR for more people-first HR insights:
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