Closing out the year can feel like a rush for any small business. With so much to do, it’s easy for important HR tasks to slip through the cracks. But taking the time to organize your HR operations now can set you up for a smooth and successful year ahead.
We know your time is valuable, so we’ve created a straightforward checklist to help you stay compliant, support your team, and prepare for 2026. Think of it as your roadmap to wrapping up the year with confidence.
What to Tackle Before Year-End
Small business owners often wear many hats, and the HR hat is one of the most critical. Prioritizing these activities before 2025 ends will help you avoid last-minute stress and start the new year on the right foot.
Review and Plan
First, look back to plan forward. What worked well this year, and what could be improved?
- Complete performance reviews: This is the perfect time to formally evaluate employee performance, set clear goals for the upcoming year, and identify opportunities for training or growth. In a small business, personalized feedback and recognition can make a huge difference in employee morale and retention.
- Review hiring and recruitment plans: Analyze your hiring process from the past year. Think about your staffing needs for 2026 and create a clear plan for recruiting, onboarding, and budgeting for new roles.
- Establish your HR budget: Plan your HR budget for next year. Include costs for recruitment, training, benefits, and any employee engagement initiatives you’re considering. Proactive budgeting helps you avoid unexpected expenses down the road.
- Conduct a workforce analysis: Take stock of your current team’s strengths and any skill gaps. This analysis will help you identify key talent, plan for future leadership roles, and ensure your team is aligned with your business goals.
Update and Organize
With the new year comes the need for fresh, accurate records. Staying organized now prevents compliance headaches later.
- Update your staff directory: Ask all employees to verify their contact details, emergency contacts, tax withholding forms, and beneficiary information. Keeping these records current is crucial for payroll, benefits, and legal compliance.
- Back up HR and personnel data: Data security is essential. Ensure all critical HR files and employee data are securely backed up to protect sensitive information.
- Update policies and employee handbooks: Review and revise your company policies and employee handbook to reflect any legal changes or internal updates from the past year. Make sure all employees have signed the latest versions.
Engage and Comply
Finally, make sure your business is compliant and that your employees feel heard.
- Conduct a compliance audit: Take a thorough look at employee classifications, labor law postings, personnel files, and policy documents. Check that everything is up-to-date and legally compliant. It’s much easier to address any gaps now than to deal with issues in the new year.
- Collect employee feedback: Use engagement or satisfaction surveys to gather honest feedback from your team. These insights are invaluable for guiding positive changes in your policies, communication, and overall workplace culture.
Set Your Business Up for Success
Wrapping up year-end HR tasks can feel like a lot, but preparing early makes all the difference. By following this checklist, you can finish the year feeling organized and confident, ready to lead your team into a successful 2026.
At Bull Insurance Agency, we believe in making complex processes simple. If you need more resources or guidance to support your year-end goals, don’t hesitate to reach out. We’ve got your back.