As we approach the end of the year and prepare for the one ahead, it’s essential for HR teams to get their companies ready for success.

Both businesses and employees are facing significant challenges. For companies, customer behavior is changing quickly, and new technologies like Generative AI are reshaping how we work. Business leaders need to adapt to these changes to stay competitive.

On the employee side, many are worried about job security due to AI and economic uncertainties, including inflation and recession fears. This has led to increased stress and burnout, with employees seeking better work-life balance.

HR leaders need to consider these challenges and take proactive steps to keep their employees engaged and their company on the path to success. Get ready for year-end with this helpful checklist:

1. Review Benefits

Top talent is always in demand. To retain employees, businesses must offer competitive pay and benefits. Key benefits that employees value include:

• Employer-covered healthcare
• Life insurance
• Retirement plans
• Paid time off
• Mental health support

It is important to conduct employee surveys and seek direct feedback to ensure their voice is heard and that you are providing them with a benefits package that meets their evolving needs.

Evaluate Employee Engagement

Monitoring employee engagement is crucial. While engagement has reached a record high of 23% globally, that still means most workers are not engaged. Employee engagement in the U.S. is slightly higher, coming in at 32%.

Top-performing companies have 70% employee engagement. Engaged employees are more productive and contribute to better company morale and profits. HR should regularly check engagement levels and develop plans to improve them as our workforce continues to evolve.

3. Assess Training and Development Programs

Despite job openings, many employees fear losing their jobs due to technology. HR should assess training programs to ensure employees can continue to broaden their skillset. Offering upskilling and reskilling opportunities can help retain staff and attract new talent.

Professional development is another key to a positive company culture. Companies that invest in training see higher internal mobility and advancement opportunities.

Lastly, HR leaders should ensure that managers are equipped to support employee development and growth effectively.

4. Measure Diversity, Equity, Inclusion and Belonging (DEI&B) Efforts

The end of the year is a good time to review DEI&B initiatives. Collecting demographic data can help assess progress and identify areas for improvement. Many employees consider DEI&B efforts important, yet many feel there is still room for improvement in the workplace.

HR should examine salaries and promotions through a DEI&B lens to ensure fairness across the organization.

5. Ensure Adherence to Evolving Regulations

New regulations are introduced regularly at various levels. HR teams must stay updated to avoid fines and legal issues. Key areas to review include:

• Minimum wage increases
• Pay transparency
• Overtime rules
• Paid leave policies

Year-end is also a good time to check compliance training to ensure it’s up to date.

6. Inform About Changes and Results

HR teams need a clear strategy for communicating changes within the organization. Transparency helps build trust and engagement with employees. When changes occur, it’s essential to explain the reasons behind them to avoid confusion and maintain company morale.

Research shows that many organizations undergo significant changes, but not all are successful. Effective communication is crucial for navigating these transitions.

By focusing on these areas, HR teams can help their companies thrive as we move into the new year.

7. Annual Document Preparation and Reporting

As the year wraps up, HR teams should carefully review their documentation related to wages and payroll. It’s important that these records match tax documents, like W-2s, and align with employees’ W-4 forms. Additionally, HR may need to provide information about health insurance plans, equal employment opportunity (EEO) forms, and other reporting requirements.

Year-end reporting also involves reconciling budgets, revenue, and expenses to accurately assess the company’s performance. Keeping an eye on trends, such as employee retention, can help identify potential issues that need attention.

8. Preparing Your Strategy for the Upcoming Year

In addition to reviewing the past year, it’s time to create an action plan for the year ahead. After evaluating how well the company met its goals, HR leaders should develop a targeted plan to address any gaps and introduce new initiatives.

Today’s businesses must also be flexible in a constantly changing environment. Effective planning helps keep employees focused and aligned with company objectives. HR strategies should empower employees with the tools and skills they need to succeed.

Here’s to a Successful New Year

As we close out this year, the next one will bring its own unique challenges. HR teams that conduct thorough year-end assessments and create plans aligned with company goals will be well-positioned for success.

If you are looking for additional HR support, OneDigital Resourcing Edge can help. Contact us today to discuss your needs and how we can partner together to set your business up for a successful new year!