The end of the year is a perfect opportunity for HR Departments to set the stage for organizational success in the year ahead. This period is a strategic checkpoint to reflect, recalibrate, and prepare. Here are some of the most important things to prioritize from an HR compliance perspective:
1. Compliance and Policy Updates
The end of the year is a great time to ensure your organization is compliant with evolving employment laws and that your workplace policies are consistent with any new updates. State minimum wage laws as well as state PTO/sick leave laws are some areas that readily change from year to year. In order to remain compliant with new laws, employers should:
- Check for new federal, state and local employment laws effective in the new year;
- Make changes to policies as necessary;
- Communicate changes in policy to managers and employees;
- Review and update the employee handbook; and
- Acquire and display updated employment and labor law posters.
2. Confirm that Employees Have Completed Mandatory Harassment Trainings
Many states and localities require this training on an annual basis. Failure to comply can result in civil penalties and fines. The end of the year is a great time to ensure that required trainings have been completed and documented.
Annual, or in some cases bi-annual harassment training is required in the following states:
- California
- Connecticut
- Delaware
- District of Columbia (for employers with tipped employees)
- Illinois
- Maine
- Massachusetts
- New York
3. Finalize Performance Reviews and Goal Setting
Performance management often culminates at year-end. This process not only closes the loop on the current year but also motivates employees for the future. Beyond completing evaluations, HR should ensure the process is meaningful by encouraging managers to provide constructive feedback and recognize achievements.
Employers should use end-of-year performance reviews to formally wrap up a year's work, align individual goals with company objectives, provide crucial feedback for growth, determine compensation/bonuses, and plan for the future by setting new goals and identifying development needs in one structured session.
4. Plan for Talent Development and Succession
Year-end is a natural time to identify skill gaps and plan for leadership continuity. This ensures the organization is resilient and prepared for growth. Examples of this could include:
- Reviewing succession plans for critical roles
- Investing in learning and development programs that align with future business needs
- Encouraging managers to nominate high-potential employees for promotions and other recognition
5. Recognize and Celebrate Employee Achievements
Employee recognition is often overlooked amid year-end deadlines, yet it’s vital for engagement. Recognition fosters loyalty and reinforces the human side of HR. Events and communications that highlight team and individual contributions help to strengthen company culture and morale heading into the new year.
6. Set Strategic Priorities for the New Year
Finally, HR leaders should use year-end reflection to chart the course ahead. This could include identifying initiatives in areas such as technology, employee morale or training. The idea is to establish measurable goals and track progress and impact.