Key Takeaways:
Year-end HR activities are crucial for strategic planning and setting a foundation for the new year.
Effective communication, precise documentation, and proactive compliance reviews are essential to avoid costly errors.
Transforming routine HR tasks into strategic initiatives can significantly enhance organizational growth and employee engagement.
As the year comes to a close, HR professionals are tasked with a range of activities to ensure a smooth transition into the new year. From compliance checks to strategic planning, the end-of-year HR checklist is essential for wrapping up critical tasks and setting the stage for success.Â
Working through this strategic checklist isn't just ticking boxes, it’s about setting yourself up for success in the coming year. You're gathering insights, spotting trends, and laying the groundwork for smart decision-making. This approach turns HR from a behind-the-scenes player into a key driver of your company's success.
At Talent to Team, we're all about making HR work smarter, not harder. We can help you craft a year-end plan that fits your organization like a glove. Want to turn your end-of-year HR tasks into a springboard for growth? Let's chat about how we can energize your HR strategy and set you up for an amazing year ahead.
Compliance Checklist
A robust compliance process helps protect the organization and its employees. Use this checklist to cover essential compliance tasks:
Employee Information & Benefits
Update personal information: Ensure all employee details are current in your HR or Payroll system.
401K, HSA, and tax contributions: Remind employees to review their contributions and deductions.
FSA benefits: Remind employees to utilize FSA funds, as these do not roll over.
Expiring benefits: Notify employees of any other benefits that may expire soon.
Payroll Management
Meet with leadership to discuss bonus payouts. Review your current bonus plan with the finance team or CFO to ensure it aligns with your retention goals for maximum impact.Â
Review and manage PTO/vacation accruals. Update balances in line with your company policy. Check your current policy for rollover and/or payout and make sure employees know what to expect.
Plan for upcoming payroll changes. Research and be prepared for any state or federal changes, including minimum wage increases, new tax rates, or benefit adjustments that are set to take effect in the new year.
Compliance Review
New laws: Communicate any new local, state, or federal laws that need to be addressed. Ensure the leadership team knows what steps to take and that you have a clear communication plan to share with the rest of the company.
Minimum wage: Ensure that all employee pay meets or exceeds the latest minimum wage requirements by regularly reviewing and adjusting salaries. Stay updated on local, state, and federal wage laws to maintain compliance and avoid potential legal issues.
Labor law posters: Update workplace posters as necessary.
ACA compliance: Verify that your business meets all ACA compliance requirements, including offering health insurance to eligible employees and reporting coverage accurately. Regularly review policies to ensure adherence to federal regulations.
State-specific changes: Discuss upcoming changes with the finance team for budgeting purposes.
Employee Handbook Updates
Your employee handbook is a living document that needs regular attention. Handbooks should be reviewed annually to stay current with employment laws and policies. Here's how to maintain your handbook effectively:
Revise state addendums. Laws change frequently, and your handbook must keep pace.
Collect acknowledgments. Make sure employees have signed the latest handbook to confirm they've received and understand it. If you have any new additions to it, send those out by EOY for acknowledgment. Â
Adapt to remote work realities. If you have employees in multiple states, ensure your handbook complies with each state's requirements, including for remote workers.
A well-maintained handbook isn't just about compliance—it's a powerful tool for communicating your company culture and expectations. At Talent to Team, we specialize in crafting handbooks that truly reflect your organization's values and goals.Â
Strategic review
A strategic HR review is your opportunity to take stock of where your organization stands today and map the path to your future success. Here’s how to create a review that drives meaningful results:
Evaluate roles: Ensure the right people are in the right roles.
Talent strategies: Review plans for attracting and retaining top talent.
Goal-setting: Set clear, achievable goals for the next year or at least for Q1.
Benefits renewal: Prepare for and review open enrollment processes.
I-9 audit: Ensure compliance by conducting an audit and purging outdated files.
Access audits: Verify who has access to sensitive employee information.
Harassment training: Complete for clients in specific states as required.
Employee Engagement Budget
Creating an employee engagement budget is a strategic move to enhance workforce contentment and retention. Here's how to make the most of your investment:
Measure your starting point. Conduct anonymous surveys to gauge current employee satisfaction levels. Align with leadership and your CFO on budget.
Allocate resources wisely. Balance your budget across various engagement initiatives.Â
Prioritize benefits over raises. Tailor your offerings to match what your team values most.
Set clear eNPS goals. Develop a plan to elevate your Employee Net Promoter Score.Â
Remember, your engagement budget isn't just about numbers—it's about creating a workplace where your workforce excels. By focusing on these areas, you're not just improving satisfaction but building a stronger, more resilient organization.
Training and Development
Elevating your workforce through strategic learning initiatives is a cornerstone of effective HR management. Let’s turn this opportunity into a comprehensive plan for growth—by focusing on planning, scheduling, and building your training budget for 2025.
Schedule standard training: Plan required training for the coming year.
Identify core competencies: Focus on key skills by role to direct employee development.
Training stipend: Consider providing a stipend for further learning opportunities.
Values and Strategy Review
As your organization advances, your HR strategy should keep pace. Nearly all HR leaders in global companies play a key role in shaping business direction, underscoring the importance of this review.Â
Reassess your organizational values. Do they still resonate with your team and align with your business goals? This reflection helps maintain a strong company culture and guides decision-making.
Refresh your talent strategy. The HR strategy should be revised annually. Evaluate your approach to attracting, developing, and retaining top talent. Are your methods still effective in the current job market?
Revamp your performance management system. Focus on continuous feedback and development-oriented approaches.
Realign HR policies with business objectives. Ensure your HR practices support long-term organizational goals. This alignment can empower employees, minimize risks, and drive success.
Internal Review
Let's spotlight your internal HR operations as we approach the finish line of our year-end checklist. Studies confirm that meticulously maintained HR documents are vital for tracking personnel growth and maintaining legal compliance.Â
Client folders and HR playbook: Ensure everything is up-to-date and well-organized.
Password management: Keep a list of important passwords and common systems.
Secure storage: Verify that files are appropriately stored, avoiding local computer storage.
Finish the Year Strong with Talent to Team
You've got the toolkit – now let's put it to work. This HR end-of-year checklist isn't just a to-do list; it's your launchpad for revolutionizing your people practices. From fine-tuning compliance to boosting employee engagement, you're laying the groundwork for a year of growth and success.
At Talent to Team, we’re here to help you turn this checklist into actionable strategies for 2024 and beyond. From tackling immediate challenges to supporting your HR goals into 2025, we’ve got you covered. Let’s connect and make next year your best yet.