How to Know When Informal HR Processes Are No Longer Working

Small employers and start-ups often begin with very informal HR practices. Policies may not be written down, processes live in someone’s head, and decisions are handled as they come up. In the early days, this usually works. It allows organizations to move quickly, stay flexible, and avoid unnecessary bureaucracy.

Over time, though, what once felt efficient can start to feel exhausting.

Informal HR processes rarely fail all at once. Instead, small cracks appear: questions come up more often, steps get missed, managers handle similar situations differently, and HR spends more time reacting than preventing. As an organization grows, recognizing when these informal processes are no longer working becomes critical.

This resource is designed to help you spot that tipping point especially if you are new to HR or stepping into an HR Department of One (HRDOO) role and understand what to do next without getting overwhelmed.

Signs HR Is Operating on Memory Instead of Process

If you find yourself saying things like:

“I think we handled it this way last time…”

HR is likely operating on memory instead of process.

Relying on memory increases the risk of steps being skipped or forgotten entirely. Some of those steps like completing I-9s on time, documenting performance issues, or meeting compliance deadlines carry real legal and operational risk.

When processes live only in people’s heads, consistency becomes nearly impossible.

Where Breakdowns Usually Show Up First

When informal HR processes start to strain, issues tend to surface in the same core areas.

Onboarding

• Required forms may be delayed or missed (I-9, W-4, state paperwork)

• New hires may receive inconsistent or incomplete information

• Managers may be unclear about their onboarding responsibilities

  
  

The result is often extra clean-up work for HR and a confusing or frustrating first experience for new employees.

Discipline + Performance Management

• Similar performance issues are handled differently across teams

• Documentation is inconsistent, incomplete, or missing

• HR struggles to explain or defend decisions later

  
  

Without a consistent approach, organizations risk fairness concerns and exposure during disputes.

Compliance Reporting

Many compliance requirements occur quarterly, annually, or on an ad hoc basis. Examples include EEO-1 reporting, payroll filings, and state new hire reporting. When these processes are undocumented, deadlines can be missed, sometimes without anyone realizing it until penalties appear.

Training

Without documented training processes:

• Mandatory training deadlines can be overlooked

• Completion may not be properly tracked

• Employees and managers may not know what training is required or how often

  
  

Recognizing the Tipping Point

You may be at the tipping point when you notice:

• The same questions being asked repeatedly

• Growing frustration or confusion among managers or employees

• Managers asking HR for clearer guidance

• HR spending more time fixing problems than preventing them

  
  

These are strong indicators that informal practices need more structure.

Formalizing a process does not mean becoming rigid or overly bureaucratic. It simply means creating clarity and consistency where it matters most.

If you are new to HR or stepping into an HR Department of One role, it’s important to name this explicitly: You are not expected to fix everything at once. Your first priority is going to be visibility over perfection.

Before changing processes, focus on understanding:

• What is currently being done

• Where breakdowns happen most often

• Which areas carry the most risk

  
  

Observing patterns and documenting reality is far more valuable than rushing to build policies that don’t reflect how work actually happens.

How to Start Documenting Without Getting Overwhelmed

At this stage, your job is not to redesign HR. Your job is to understand what is actually happening today. Observing patterns, documenting reality, and identifying where things break down will set you up for better decisions later.

Think of documentation as visibility first, improvement comes second.

Formalizing HR processes does not require a full overhaul or lengthy manuals. A practical and sustainable approach is to document processes as they are happening.

For example, during onboarding:

• Write down each step involved

• Identify who owns each step (HR, manager, IT, payroll, etc.)

• Note timing and handoffs

  
  

Short SOPs, checklists, or simple process maps are often enough. The goal is clarity, not perfection.

Tools like Scribe can make this easier by capturing steps as you work, ensuring documentation reflects real practices rather than assumptions.

This type of documentation is also extremely helpful when onboarding new HR team members or working with fractional HR support.

What to Prioritize First

How to Decide Where to Start

If you are feeling overwhelmed, start by asking:

• Where is the most risk if something goes wrong?

• What processes do people ask about repeatedly?

• What deadlines or cycles are coming up soon?

  
  

You do not need to document everything. You only need to document what matters most right now.

If nothing is documented, deciding where to start can feel daunting. Prioritization helps reduce overwhelm.

Start with Risk + Compliance

Focus first on processes tied to legal or regulatory requirements, such as:

• Required trainings

• Leave administration

• Compliance reporting and filings

  
  

Consider Upcoming Cycles or Deadlines

If open enrollment, performance reviews, audits, or annual reporting are approaching, documenting those processes can prevent last-minute confusion.

Address High-Friction Areas

If the same issues or questions come up repeatedly, that is a strong signal the process needs to be documented.

Starting small builds momentum and makes the transition away from informal practices more manageable.

A Simple “Good Enough” HR Foundation

For many small employers, a minimum viable HR foundation includes:

• An onboarding checklist

• A basic discipline and documentation process

• A compliance calendar

• A training tracker for required courses

  
  

These do not need to be complex. Clear, consistent, and documented is enough to significantly reduce risk and confusion.

What “Good Enough” Can Look Like

For many small employers, a minimum viable HR foundation is often enough to reduce confusion and risk. This typically includes:

• A basic onboarding checklist

• A simple discipline and documentation process

• A compliance calendar with key deadlines

• A tracker for required trainings

  
  

These do not need to be perfect or complex. Clear, consistent, and documented is enough to make a meaningful difference.

HR Risk

HR risk often feels abstract or overly legal, but it typically shows up in everyday situations.

Undocumented or inconsistent practices can lead to:

• Employees feeling unfairly treated

• Managers applying standards differently

• Missed compliance requirements or deadlines

• Difficulty explaining or defending decisions later

  
  

When processes are documented, organizations are better positioned to show that decisions are consistent, reasonable, and made in good faith.

Growth Brings New Needs

Informal HR processes are a normal part of small employers. The challenge is recognizing when those practices begin to create confusion, inconsistency, or risk.

The transition to more structured processes does not have to be overwhelming. It is usually a natural next step in a growing organization.

By identifying pain points, documenting what already exists, and prioritizing what matters most, organizations can build HR processes that support both the business and its people, without losing flexibility.