As the year winds down, now is the time to make sure your HR processes and policies are in order for 2025. By addressing key areas like compliance, employee engagement, and operational efficiencies, you can set your team and business up for success in the new year. To help you stay organized, we’ve compiled a detailed year-end HR checklist.
You can also download our HR Checklist PDF for a handy reference as you prepare.
Compensation and Benefits
Review Pay and Benefits Packages
Take a close look at your current salary structures, benefits, and time-off policies. Are they competitive enough to attract and retain top talent? If not, consider updates to align with market standards.
Confirm Bonus and Gift Reporting
Whether you’re giving bonuses or non-cash gifts like gift cards, make sure you’re following tax rules. Proper reporting on W-2 forms is essential to avoid complications.
Employee Engagement and Retention
Assess Training and Development Programs
Training programs should help employees grow in their roles and align with the organization’s goals. If your current offerings aren’t hitting the mark, think about where updates are needed to add value.
Evaluate Recognition Programs
Recognition matters to your employees, but consistency and inclusivity are key. Take some time to ensure your recognition efforts reflect your company’s culture and values.
Compliance and Legal Updates
Audit Wage and Hour Policies
Verify that your overtime, travel time, and on-call pay policies comply with wage and hour laws. Staying proactive here can prevent issues down the road.
Review FLSA Compliance
Check that all exempt employees meet the Fair Labor Standards Act (FLSA) requirements for salary thresholds and duties.
Check I-9 Documentation
Ensure employee records are accurate and up to date. This is a simple step that can prevent compliance headaches.
Update the Employee Handbook
If your handbook hasn’t been reviewed in a while, this is the time to update it with any new laws, policies, or organizational changes. Get input from leadership to make sure it reflects the company’s current direction.
Prepare for W-4 and W-2 Distribution
Help employees get ready for tax season by communicating about W-4 forms and the timeline for W-2 availability. Clear instructions now save confusion later.
HR Technology and Tools
Evaluate Your Systems
Take a look at the tools and technology your HR team uses. Are they making processes more efficient and improving the experience for your team and employees? If not, it may be time to consider upgrades or new solutions.
Risk Management and Safety
Review Safety Policies
Ensure workplace safety protocols are current and compliant with regulations. Complete any required audits or inspections before the year ends.
Confirm Insurance Coverage
Check that your workers’ compensation and other insurance policies are up to date and provide adequate protection.
Talent and Organizational Alignment
Update Job Descriptions
Job descriptions should accurately reflect the responsibilities of each role. If your organization’s needs have evolved, make sure the descriptions do, too.
Connect Performance Reviews to Business Goals
A good performance review process ties directly to your organization’s mission and objectives. If your reviews feel disconnected, now’s the time to realign.
Improve Operational Efficiency
Automate Where You Can
Identify any manual processes that could be automated. Whether it’s payroll or onboarding, reducing repetitive tasks can save time and prevent errors.
Refocus on Strategic Planning
Look at how much time leaders spend on administrative tasks. Shifting those responsibilities through delegation or automation allows for more focus on strategy and growth.
Download Your HR Checklist PDF
This checklist is your starting point for a smoother, more organized transition into the new year. For an easy-to-use version, download our HR checklist PDF and keep it handy as you finalize your plans for 2025.
If you need help tackling any of these steps or want expert advice, XpanseHR is here to support you. Contact us today at to learn more about how we can help. Make 2025 the year your HR strategy leads the way.
