For many small and medium-sized businesses, HR compliance isn’t a priority until something goes wrong.

But HR compliance shouldn’t be treated as a reaction to problems.
It should be part of how a business operates from the beginning.

Here are seven areas Kenyan SMEs should pay close attention to.

1. Incomplete employment documentation
   Every employee relationship should be properly documented.
   Businesses should ensure that employment documentation clearly reflects the terms and conditions of
   employment and is maintained appropriately.
2. Poorly maintained employee records
   Employee records shouldn’t exist only in someone’s email inbox or filing cabinet.
   Businesses should establish organised systems for maintaining important employee information and
   documentation.
3. Weak HR policies
   Many SMEs operate without formal policies until an employee issue arises.
   Policies help establish clear expectations around areas such as:
   1. Leave
   2. Conduct
   3. Performance
   4. Grievances
   5. Disciplinary procedures
   6. Workplace behaviour
4. Poorly managed disciplinary processes
   Employee disciplinary matters need to be handled carefully and consistently.
   An informal or inconsistent approach can expose an organisation to unnecessary risk.
   Businesses should have clear processes and appropriate documentation.
5. Unstructured performance management
   Performance shouldn’t only be discussed when something goes wrong.
   Employees need clear expectations, feedback and appropriate performance review processes.
6. Incorrect handling of employee exits
   Whether an employee resigns, is terminated or the organisation undergoes restructuring, exits should be
   handled carefully and in accordance with applicable employment requirements.
   This is an area where professional HR guidance can be particularly valuable.
7. Treating HR as “just administration”
   Perhaps the biggest risk is treating HR as paperwork.
   HR affects:
   1. Compliance
   2. Employee relations
   3. Performance
   4. Recruitment
   5. Retention
   6. Company culture
   7. Business continuity

As a company grows, HR becomes a business function, not simply an administrative task.

What should SMEs do?

Start by asking:

Are our contracts and employee records properly managed?
Do we have the right HR policies?
Are our managers equipped to handle employee issues?
Do we have a structured performance management process?
Are we handling employee exits appropriately?

If the answer to several of these questions is “I’m not sure,” that’s a signal that your HR function may need attention.

Need help strengthening your HR function?

Alternate Doors works with growing businesses to strengthen their people practices, HR structures and processes.

Not sure where your HR gaps are? Book an HR consultation with Alternate Doors and start with
an assessment of your current HR needs.