Handbook and core policies

A written handbook every employee has actually received
PTO, sick leave and time off policy in writing
Anti-harassment and code of conduct policy in writing
Policies reviewed in the last 12 months

What it costs you when it is missing: every manager makes it up as they go, and the first time two employees compare notes, you have a fairness complaint.

Offer letter and onboarding

A standard offer letter template, not a copy-and-paste from the last hire’s email
Written onboarding checklist for the first week
Equipment, access and payroll set up before day one, not on it
30- and 90-day check-ins built into the process

What it costs you: new hires decide whether they made the right call in the first two weeks. A messy start is how you lose people you just spent months recruiting.

Pay bands

Defined pay ranges for every role, built from real market data
A documented process for raises, not a founder gut check
Offer pay checked against the band before it goes out
Pay equity reviewed at least once a year

What it costs you: you pay two people wildly different amounts for the same job, and you find out in an exit interview.

Write it down when it happens

Written notes from every performance conversation, good or bad
A simple, consistent template managers actually use
Documentation happens close to the event, not months later
A record that exists before a termination, not created to justify one

What it costs you: the hard conversation becomes a legal risk instead of a documented pattern.

A clear place to raise a problem

Employees know exactly who to go to with a complaint
That path is not “their own manager” when the manager is the problem
Complaints get logged somewhere that is not a group chat
A defined timeline for follow-up, even if the answer is “still looking into it”

What it costs you: real problems die in Slack DMs and surface later as a resignation or a claim.

Manager basics

Managers trained on how to give feedback
Managers trained on how and when to document
Managers trained on the basics of hiring and interviewing
New managers get this before their first direct report, not two years in

What it costs you: your turnover problem is a management problem wearing a market excuse. The most expensive gap on this list.

Required posters and filings

Current labor law posters displayed, physical or digital
Required state and federal filings up to date
I-9s (the federal form that proves someone can work in the US) complete and on file for every employee
Workers’ comp and required insurance current

What it costs you: this is the one that turns into a fine. It is also the fastest fix on the page.

What your first HR hire should walk into