You don't need a 50-person HR department to have solid HR policies. What you need is a clear set of written guidelines that tell employees what's expected, protect the business from liability, and ensure you're treating people consistently. Here are the nine policies every small business should have documented.
1. At-Will Employment Policy
If you're in the US, most states are at-will employment states, meaning either party can end the employment relationship at any time for any legal reason. Your policy should state this clearly, along with any exceptions. This protects you in termination disputes.
2. Anti-Harassment and Non-Discrimination Policy
Required in virtually every jurisdiction. Must include: protected classes covered, examples of prohibited behavior, reporting procedure, investigation process, and anti-retaliation statement. This is the policy most likely to matter in a legal context — draft it carefully and have it reviewed.
3. PTO and Leave Policy
How PTO accrues, when it can be used, carryover limits, payout at termination, and how to request time off. Vague or inconsistent PTO policies are a leading source of employee complaints. Write it down clearly and apply it uniformly.
4. Remote Work and Flexible Schedule Policy
Post-pandemic, nearly every business needs a written remote work policy even if it's just 'no remote work permitted.' If you allow it, define eligibility, expectations for availability and communication, equipment policy, and performance standards for remote employees.
5. Confidentiality and Data Security Policy
What information is considered confidential, how it must be handled, what employees can and cannot share externally, and consequences for violations. Particularly important if you handle customer data, financial information, or proprietary processes.
6. Social Media Policy
What employees can and cannot post about the company, colleagues, or clients on personal and professional social media. Include guidance on representing the company online and how to handle questions or criticism directed at the business.
7. Performance Review Policy
How often reviews happen, who conducts them, what criteria are used, how ratings connect to compensation, and the documentation process. A documented review policy ensures employees know what they're being evaluated on and reduces bias in the process.
8. Progressive Discipline Policy
The steps taken before termination — verbal warning, written warning, performance improvement plan, final warning, termination — and the documentation required at each stage. This protects you in wrongful termination claims by demonstrating a fair, documented process.
9. Drug and Alcohol Policy
Zero-tolerance vs. reasonable suspicion testing, what substances are covered, consequences for violations, and accommodation for legal medical use. Note that cannabis policies must account for state law, which varies significantly.
Creating These Policies Without an HR Department
Most small businesses don't have a dedicated HR function. Processly generates complete HR policy documents tailored to your industry and business size — free to start, with Pro access for the full policy library including employee handbooks and compliance-sensitive documents.