HR Lite for Small Business

At what point does a start-up or a small business need HR?  In my experience many small businesses feel comfortable as long as their payroll company is handling payroll reporting properly.  Yet, as the business grows, the need for standardization in managing people develops.   Policies on vacation, sick time, harassment, dress attire and much more begin to surface.

I’ve heard clients use the term “HR Lite” to express their internal HR structure.  Basically, they don’t want rules to stifle their growth culture.  Plus, by nature, true entrepreneurs avoid rules and regulations.

What HR issues do you face as a small business that concern you?  If you were to build an “HR Lite” package of services for your business, what essential services would you need most?