Do small firms fare better without a professional human resource manager?

We examine the direct and indirect effects of human resource (HR) informality—that is, not having a professional HR manager in post—on employee outcomes growth-oriented small firms. Drawing from literature principal–agent relationship trust, we theorise moderated-mediating model between informality unfavourable through owner-manager's distrust during firm growth. Based on matched employer–employee data 543 firms their 4853 employees United Kingdom, empirical results show positive significant association owner-managers' staff, especially multiple-site (often manifestation growth-oriented) Through this path, has adverse effect recorded staff voluntary turnover, absenteeism, number dismissals perceived collective trust management, which counteracts its weak effect, thus leads to an overall negative impact. The theoretical practical implications are discussed.