Here is a helpful Year End HR Checklist: Giving You Essential Tips for Your Small Businesses
As the year winds down, your HR person, or in the absence of an HR person, your leader, plays a crucial role in ensuring that businesses are prepared for the new year. For small businesses with 30-50 employees, a well-organized year-end HR checklist can make a significant difference in operations, compliance, and employee satisfaction.
Here’s a comprehensive guide to help you wrap up the year smoothly.
Review and Update Employee Records
The first step is to ensure that all employee records are up-to-date. This includes confirming contact details, checking that certifications and training records are current, and ensuring that all employee information is accurate and complete. Accurate records are not just a best practice but a legal requirement, so make sure nothing is overlooked. You’re going to be sending out their T4s in the new year (if you do not have an automated payroll system), so you might as well check now that you have their address correct!
Conduct Performance Evaluations
Year-end is the perfect time to conduct performance evaluations. These reviews provide an opportunity to assess employee performance over the past year, set goals for the upcoming year, and discuss career development. Document these evaluations carefully and use them to set future performance objectives.
Review Benefits and Compensation
It’s essential to review your benefits and compensation packages. Ensure that any changes, such as bonuses or salary adjustments, are reflected in your payroll system. Also, verify that your benefits enrollment processes are up-to-date and ready for the new year. This step is crucial for maintaining employee satisfaction and ensuring compliance with compensation laws.
If you’ve made any changes to your benefits plans this year, make sure that you update the salaries in your benefits plans. If your employees have to rely on STD or LTD next year, it will be calculated based on what you have entered as their annual salary!
Compliance and Legal Checks
Compliance with labour laws and regulations is non-negotiable. Conduct a thorough review to ensure that your business adheres to all relevant legal requirements. This includes filing necessary tax documents, such as T4 slips in Canada, and ensuring that your business is compliant with all employment standards. Have you started using HannahHR.com yet? If not -sign up and save time and money!
Plan Training and Development for the Next Year
Assess your team’s training needs and plan for the upcoming year. Whether it’s mandatory training sessions or professional development opportunities, having a clear plan in place ensures that your employees continue to grow and contribute to the company’s success.
Manage PTO and Leave Balances
Year-end is also the time to review paid time off (PTO) and leave balances. Make sure any remaining PTO is managed according to your company’s policies. Remember, technically, there is no provision for rolling over vacation in BC’s ESA. Clear communication with employees about their leave balances can prevent confusion and ensure that everyone starts the new year on the right foot.
Engage with Employees
Consider conducting an employee satisfaction survey to gauge morale and identify areas for improvement. Planning team-building activities or a year-end event can boost morale and foster a sense of community within your team.
Review Company Policies
Take this time to review and update your employee handbook. Ensure that all company policies are current and reflect the latest legal requirements and best practices. This includes any updates to health and safety protocols, remote work policies, or other key areas.
Prepare Year-End Reports
Prepare year-end reports summarizing HR activities, metrics, and achievements over the past year. This is also a good time to analyze key HR metrics, such as turnover rates, absenteeism, and employee satisfaction, to identify areas for improvement in the coming year.
Strategic HR Planning
Align your HR goals with the company’s strategic objectives for the upcoming year. This could involve planning for recruitment, workforce development, and other HR initiatives that support your business’s growth and success.
Organize Office and Digital Files
Finally, take some time to clean up and organize both your physical office space and digital files. Archive old files, organize your digital records, and ensure compliance with data protection regulations. A well-organized workspace can improve efficiency and make it easier to start the new year on the right foot.
The year-end can be a hectic time for HR, but with a well-structured checklist, you can ensure that everything is in order as you transition into the new year. From updating employee records to strategic planning, these best practices will help your small business stay compliant, efficient, and ready for the challenges and opportunities of the upcoming year.