If you own a small or medium-sized business without a dedicated HR team, you might rely on an office manager or admin staff to handle the basics — payroll, leave, and contracts. But what happens when serious workplace behaviour issues arise?
Without strong performance management processes, small issues can spiral into legal risks, customer complaints, and costly productivity losses.
This case study shows how one medium-sized business turned things around — and how an HR consultant can help you do the same.
The Situation: Slipping Standards and Escalating Problems
Our client was a medium-sized business with around 50 employees and no in-house HR manager. Over time, without consistent supervision, the workplace culture began to decline:
- Extended breaks became the norm.
- Staff regularly took personal calls during work hours.
- Inappropriate language was common on site.
- Mistakes in customer orders damaged relationships and increased rework costs.
With no formal performance management system in place, standards drifted. The breaking point came when a sexual harassment complaint was made by an employee — putting the business at risk of legal action and reputational harm.
Our Role: HR Review and Lawful Action
The business owner engaged us to conduct an independent HR review. Our process included:
- Workplace culture assessment — interviewing staff, reviewing processes, and identifying gaps in supervision.
- Policy compliance check — ensuring workplace behaviour rules, sexual harassment policies, and performance standards met legal requirements.
- Identifying misconduct patterns — including specific individuals undermining productivity and morale. See article on managing toxic employees
- Guiding the owner through lawful processes — avoiding unfair dismissal claims and ensuring procedural fairness.
We worked with management to lawfully remove problem employees who were unwilling to change and who posed ongoing risks to the business.
The Results: Resetting Standards and Restoring Productivity
Once the immediate risks were addressed, we helped the business reset expectations:
- Introduced a clear code of conduct and behaviour guidelines.
- Updated sexual harassment and bullying policies in line with current legislation.
- Delivered supervisor training on early intervention in performance issues.
- Introduced regular performance check-ins and simple incident reporting.
Within weeks, productivity increased, customer errors dropped, and staff morale improved. Employees understood the expectations — and that management was committed to maintaining them.
Key Lessons for Small and Medium Business Owners
If you don’t have a full-time HR manager, you still need strong performance management processes. Without them:
- Misconduct can spread and drive away good employees.
- You face a higher risk of legal claims, including unfair dismissal or harassment cases.
- Productivity and customer satisfaction can take a hit.
Engaging an experienced HR consultant means you can:
- Resolve workplace issues lawfully and quickly.
- Protect your business from costly claims.
- Build a respectful, accountable workplace culture.
FAQs
Q: Can I terminate an employee for misconduct without a HR manager?
A: Yes, but you must follow the correct process to avoid unfair dismissal claims. An HR consultant can guide you step-by-step to ensure it’s lawful.
Q: What if I only need HR help occasionally?
A: Many small and medium businesses hire HR consultants on an as-needed basis for issues like performance management, workplace investigations, or policy updates.
Q: How much does HR consulting cost for performance issues?
A: It varies depending on complexity, but many cases can be resolved quickly with the right process — preventing far more expensive legal or productivity losses.
Need HR Help? We Work Across Australia
We support small and medium businesses in Sydney, Melbourne, Brisbane, Perth, and regional areas to manage performance issues, resolve workplace complaints, and build better team culture.
📞 Contact us today to take control of your workplace before small problems become costly risks.
For a complimentary workplace investigations procedural fairness consultancy discussion, contact David directly.
David Haydon
Principal HR Consultant and Employment Relations (ER) Specialist
Disclaimer. This article provides general information only and is not intended as legal advice. Every workplace matter is different, and employers should seek professional advice tailored to their circumstances. ER Focus is not a law firm. Where legal advice is required, we work with trusted employment lawyers and can assist in making referrals.