HR Question:

I know there are several year-end human resources activities that should be done, and I’m worried I will miss a step. What are some of the best HR practices for the end of the year?

HR Answer:

With the end of the year approaching, take this opportunity to celebrate accomplishments and gear up for an even better year ahead. We find it’s helpful to have a robust year-end HR checklist to ensure nothing is missed. Following this action list isn’t merely for the sake of routine; it drives efficiency, supports compliance, and sets the stage for growth. Consider using the following interactive checklist to set your organization up for success.

Compensation, Payroll, and Benefits

Compensation benchmarking and required payroll administration changes are among the most important year-end tasks to consider.

Keep Payroll Books Open

Check with your payroll provider for specific year-end processes necessary for a clean year-end. Many providers will allow you to “keep the books open” after your final scheduled pay run to allow for last-minute payroll runs or corrections. This is particularly important if you are waiting for pay statements from third-party disability providers, for example.

Send Updated Tax Rates

Review your tax notices and notify your payroll provider of any changes in unemployment tax rates or other contribution changes for the upcoming year. Verify the accuracy of employee benefits information, including enrollments, terminations, and deductions. If there are changes in coverage, be sure new deductions are scheduled to begin in the new year and that all enrollment changes are provided to the appropriate parties.

Consider Compensation Benchmarking

Look into compensation benchmarking to ensure the company is staying competitive against industry standards. If adjustments are necessary, strategize how these changes will be implemented for the upcoming year.

Evaluate Wellness Plan Usage

Review wellness programs, assess their impact, and consider new plan initiatives. What is working and what isn’t? What shows engagement and what doesn’t? Plan for any necessary changes to increase engagement.

Compliance and Reporting

Compliance tasks are a critical year-end activity for Human Resources. Keep in mind these can vary based on your organization’s size, industry, and location(s), so be sure to do your research to compile a complete list.

Review Employee Handbook

Update your employee handbook to reflect any new laws or internal changes. An updated handbook can help to limit liability as employment laws and policies change. It’s important that all employees are made aware of and understand any updates

Assess Employment Notice Updates

Review compliance posters and employee notices to make sure they are up-to-date and compliant in anticipation of any changes in the upcoming year. Check for federal, state, and local changes.

Gather ACA Records

Ensure records and data are ready for the required ACA reports (if applicable) ensuring that forms 1094-C and 1095-C will be prepared correctly in the new year.

Conduct I-9 Audit

Consider an audit of your I-9 documents for compliance and take this time to remove records for terminated employees in accordance with proper record retention requirements.

Planning and Strategy

Developing strategies for the new year sets a strong foundation. Take this time to reflect on the current year and plan for the upcoming year, identifying HR goals that align with company goals and objectives.

Perform Staffing Analysis

Analyze staffing needs and forecast hiring requirements to guide your recruitment goals. Be sure your human resources objectives focus on employee retention, engagement, training, and continuous improvement while keeping in line with company goals.

Review Budget

Compare the current year’s HR budget with actual expenses to identify areas for improvement. Look for excess or gaps, and remember to consider anticipated costs for recruitment, training, and compliance.

Plan the Calendar

Get your calendar ready! Schedule your upcoming employee engagement initiatives and training and development programs. Planning now will ensure the costs associated are included in the new year’s budget.

Coordinate Succession Planning

Update succession plans by identifying key roles and preparing for potential transitions. This strategic planning will help support business continuity planning and allow for employee development that can be identified in year-end performance discussions.

Communication

Effective communication is key to closing out the year smoothly.

Share Gratitude

Take the end of the year as an opportunity to recognize those around you. Review employee recognition programs and consider implementing end-of-year rewards or appreciation events.  Send year-end messages or thank you notes to employees, acknowledging their hard work and contributions.

Communicate Achievements and New Goals

Collaborate with senior leadership and schedule a Town Hall meeting to recap the year’s achievements and highlight the goals for the new year. Most importantly, allow questions and open feedback.

Send New Holiday Schedule

Don’t forget to let employees know of scheduled company holidays for the new year!
 
The HR checklist above should get you well on your way to a fantastic new year. And of course, this is not an exhaustive list as each organization will have its own unique circumstances and goals. Therefore, we invite you to look internally at your own processes and needs and modify the list to best serve you and your organization.

Special thanks to Sherri Hume, SHRM-CP, HR Business Advisor, for sharing her expertise in this HR Question of the Week!

Are you overwhelmed trying to keep up with everything on your HR plate? You don’t have to do it alone. Clark Schaefer Strategic HR can help with HR Recordkeeping & Compliance, Benefits & Compensation, Training & Development, Recruitment, Employee Relations, and so much more. Visit our Outsourced HR Services page to learn how we can support your HR function.