From ensuring compliance to boosting company culture, this year-end HR checklist will set you up for success in the New Year
The final quarter of 2022 is here — and if you aren’t already thinking about end-of-year HR tasks, now is the time to start. Not only is it essential to assess and update your HR functions and policies for your growing business, it’s also important to map out your people needs and develop a recruiting plan for the New Year.
To simplify things for you, we’ve mapped out the top considerations for end-of-year HR planning in three critical areas: legal and compliance, company policies, and workforce and recruiting. Use this as your comprehensive End-of-Year HR checklist to make sure your i’s are dotted, your t’s are crossed, and you’re on track for success.
End-of-Year HR Checklist for Businesses
- LEGAL & COMPLIANCE -
The end of the year is the ideal time for HR risk management planning. Carefully audit your policies and processes to make sure they’re compliant with all relevant labor and employment laws in your area.
❏ Ensure compliance with any new state, city, or federal labor laws, which are typically effective the first of the year.
❏ Verify correct labor laws are properly posted in the designated areas.
❏ Review the accuracy of employee classifications, either as exempt (salary) or non-exempt (hourly), as well as contractor versus employee status.
❏ Audit and organize employee personnel files for compliance with employment record requirements.
❏ Review the following employment processes for compliance with EEOC regulations to support fairness and equity in your hiring and employment practices.
❏ Remind employees to update their personal information for benefits cards, tax documents, etc.
❏ Review your company’s employment practice liability insurance (EPLI) policy to ensure your organization is protected.
- COMPANY POLICIES -
Perhaps your workforce has recently incorporated remote or hybrid work arrangements, or perhaps it has simply grown in size. As your company evolves and changes, your policies and practices need to be updated as part of your End-of-Year HR planning — not just for compliance reasons, but to support a healthy company culture and meet the changing needs of your workforce.
❏ Review and update all of your company policies, including those related to:
❏ Remote work and hybrid working arrangements
❏ Diversity, equity, and inclusion
❏ Update your employee handbook or develop a new one.
❏ Review employee headcount for compliance with federal laws. (If your workforce has grown, you may need to include new policies to address COBRA, Family Medical Leave, or benefit eligibility.)
❏ Update your company holiday schedule.
❏ Make any necessary changes to your PTO (paid time off) policy.
❏ Update the descriptions of your employee benefits.
- WORKFORCE & RECRUITING -
To attract and retain top talent in the year ahead, it’s necessary to set the stage with the right people processes and policies. This section of the End-of-Year HR checklist will help your organization compete in today’s challenging labor market by adjusting your compensation, making a workforce plan, upgrading your approach recruiting and hiring, and supporting employee development.
❏ Review your company’s approach to employee compensation in the following areas:
❏ Job market analysis - Is your compensation competitive in the marketplace? (This can be a time-consuming task, so it’s highly recommended to enlist an HR expert.)
❏ Pay increases - What’s your plan to keep your compensation competitive, and are you offering adequate pay increases to reward and retain high-performance workers?
❏ Pay equity review - Find out if you’re paying too much, or too little, for each role — either within your own organization or compared to other similar roles in your industry or location.
❏ Adjust your company’s pay structure as necessary, based on the activities above.
❏ Create a workforce staffing plan that forecasts your organization’s future hiring needs.
❏ Meet with department heads and make a list of future hires.
❏ Map out the dates you want each new hire to begin.
❏ Estimate the amount of time it will take to fill each position.
❏ Review and update job descriptions to ensure accuracy and compliance with the Fair Labor Standards Act (FLSA).
❏ Review the following people processes for effectiveness and set a new course where necessary:
❏ Engagement and Retention
❏ Plan and perform annual end-of-year employee performance reviews.
❏ Update your employee training and development plan for the New Year.
❏ Implement employee assessments to identify strengths and opportunities for development.
❏ Schedule training workshops to address skills gaps.
❏ Implement or update your employee recognition program to reward high performers.
Need help crossing items off your end-of-year HR checklist? That’s our specialty.
Let us take the work of HR compliance and planning off your plate so you can focus on growing your business. We’ll work with you and your team to devise a plan designed to fit your needs, from a full HR audit, to workforce planning and more.
To get started, schedule your FREE consultation today.