Key HR Tasks to Prepare Your Business for Year-End
As the year draws to a close, businesses have a unique opportunity to reflect on their accomplishments and prepare for the year ahead. From a Human Resources (HR) perspective, the end of the year is a critical time to ensure that your business is both compliant and fostering a healthy, positive workplace culture. Whether you’re finalizing paperwork, planning for growth, or ensuring employee engagement, these five key takeaways will help guide your business toward a successful year-end transition.
Review and Update Compliance Policies
Compliance should always be top of mind for businesses, and the end of the year is an ideal time to ensure that you’re up to date with local, state, and federal labor laws. Some areas to focus on include:
Wage and hour compliance: Ensure your payroll practices align with the Fair Labor Standards Act (FLSA) and minimum wage laws. Verify that all employees, including exempt and non-exempt workers, are being paid accurately.
Health benefits and ACA requirements: For businesses with over 50 employees, confirm that your health benefits comply with the Affordable Care Act (ACA). Review your offerings to ensure coverage requirements have been met.
Leave policies: Double-check that your family and medical leave policies comply with the Family and Medical Leave Act (FMLA) and any state-specific regulations. Additionally, make sure any unused paid time off (PTO), sick time off (STO), or vacation carryover policies are properly documented.
Key Data Point: Labor law changes frequently—ensure your policies are reviewed annually to stay compliant. Failure to do so can result in costly penalties.
Audit Employee Data for Accuracy
End-of-year payroll processing and tax filings can be cumbersome, but performing an audit of your employee data ensures that no costly errors occur. Verify that employee addresses, Social Security numbers, and tax withholding forms (W-4s) are up to date.
Additionally, ensure that all compensation data, such as bonuses or commissions, are properly documented. This will help smooth the year-end tax reporting process and make W-2 distribution much easier.
Key Data Point: IRS data shows that incorrect employee information can lead to tax filing delays and penalties—be proactive in verifying data before filing.
Plan for Open Enrollment and Benefits Renewal
For many businesses, the end of the year coincides with open enrollment for employee benefits. Review your benefits offerings to make sure they are competitive, compliant, and aligned with your employees’ needs. Businesses should also communicate clearly with employees about any upcoming changes in health insurance premiums, coverage, or wellness initiatives.
Start the benefits renewal process early to avoid last-minute issues and to give your employees ample time to make informed decisions.
Key Data Point: According to SHRM, employee benefits are a major driver of employee satisfaction—89% of employees say good benefits are critical to job satisfaction.
Performance Reviews and Goal Setting
Year-end is the perfect time for employee performance reviews and setting goals for the upcoming year. These reviews are an opportunity to provide feedback, recognize achievements, and set expectations for the year ahead.
For small businesses, it’s important to foster a culture of continuous improvement. Align performance reviews with goal setting to help your employees develop both professionally and personally. This not only increases engagement but also supports the overall success of your business.
Key Data Point: Companies with strong employee engagement outperform competitors by 147%, according to Gallup. Performance reviews can serve as a key tool to boost engagement and retention.
Reflect on Company Culture and Employee Engagement
The end of the year offers a natural pause to reflect on company culture and employee morale. Employee engagement surveys can help you gauge how your team feels about the work environment, leadership, and career growth opportunities.
Based on feedback, make any necessary adjustments to strengthen your company’s culture. Whether it’s promoting work-life balance, implementing new wellness programs, or providing leadership training, your focus should be on creating a positive and supportive environment.
Key Data Point: A 2023 survey from Glassdoor found that 77% of employees consider a company’s culture before applying for a job. A healthy work culture can be your competitive advantage in attracting and retaining top talent.
Preparing for the end of the year from an HR perspective is a complex process that requires careful planning to ensure your business stays compliant, your employees remain engaged, and your company culture continues to thrive. By prioritizing compliance updates, auditing employee data, planning benefits, conducting performance reviews, and fostering a positive work environment, your business will be ready to take on the challenges of the new year.
Rising Tide HR is here to support you every step of the way. With our expert guidance in HR management, we can help you take these proactive steps to avoid compliance issues and build a strong foundation for long-term growth. Reach out to us today to ensure your business is well-prepared for success.
