At this time of year, HR teams and business owners are navigating a delicate balance between wrapping up the current year and laying the groundwork for a successful year ahead. It’s a period that can often feel rushed with competing priorities, but focusing on key HR areas now will ensure a smooth close to the year while setting your people and business up for success in the new year. Here are five areas to prioritise:

1. Workforce Planning and Role Review

The end of the year is the perfect time to review your workforce needs and ensure you are adequately prepared for the year ahead. Consider:

• Forecasting future workforce needs: Will there be growth, or are adjustments needed due to economic changes?
• Role clarity: Are your current roles aligned with your business strategy? This is a good time to evaluate and update job descriptions and ensure you have the right people in the right positions.
• Career pathways: As more employees look for development rather than traditional promotions, consider creating sideways career paths that offer growth without requiring leadership roles.

Tip: Engage with department heads and leaders early to align their goals with workforce needs, especially with the busy holiday period looming.

2. Employee Wellbeing and Mental Health

The end of the year can be both joyful and stressful for employees. Many feel the pressure to wrap up projects while managing personal commitments. Prioritise:

• Mental health check-ins: Regularly check in with your team about their mental health. Encourage the use of Employee Assistance Programs (EAPs) and other support systems.
• Leave management: Ensure employees are taking their leave and that you have a clear plan for managing leave liabilities. Planning now will prevent headaches during the holiday period and early next year.

Tip: Consider offering flexible work arrangements as people juggle personal and professional demands during this time.

3. Recognition and Celebration

End-of-year celebrations provide an opportunity to recognise hard work, reinforce culture, and boost morale. However, it’s essential to ensure that these celebrations are inclusive and aligned with company values:

• Celebrate achievements: Recognise both individual and team accomplishments. Personal, thoughtful recognition can significantly impact motivation heading into the new year.
• Diversity and inclusion: Be mindful that holiday celebrations may not be the same for everyone. Create an inclusive environment where everyone feels welcome to join in the celebrations, regardless of their background.

Tip: If you’re hosting an office Christmas party, plan with HR in mind to avoid potential pitfalls, such as inappropriate behaviour or exclusionary practices. Keep it fun but keep it respectful. Take a look at our recent How to Plan the Perfect Office Christmas Party: Celebrate the Year Without the HR Headaches blog for inspiration.

4. Performance Reviews and Goal Setting

Performance reviews are often dreaded by employees and managers alike, but with the right approach, they can be an invaluable tool for reflection and forward planning.

• Reflect on the year: Use performance reviews as an opportunity to have meaningful conversations about both successes and areas for development.
• Set new goals: Align performance feedback with clear goals for the upcoming year. Ensure goals are realistic and aligned with the business’s strategic priorities.
• Training and development: Identify any training gaps and plan development activities for the new year, so employees have a clear path for their growth.

Tip: Introduce a 1:1 rhythm where feedback is more frequent, so the end-of-year review becomes part of an ongoing conversation rather than a once-a-year task.

5. Compliance and Legislative Updates

Ensuring compliance with employment laws and regulations is essential, and year-end is ideal for double-checking everything is in order

• Policy review: Review key policies and ensure they are up to date with any legislative changes. This may include updates to leave entitlements, workplace safety measures, and anti-discrimination laws.
• Audits: Conduct an HR audit to identify any areas of non-compliance or risk that need to be addressed.
• Prepare for the new year: If new laws or regulations will come into effect in the next calendar year, begin preparing now to ensure a smooth transition.

Tip: Keep communication lines open with your legal and HR compliance teams to ensure that nothing slips through the cracks as the year winds down.

Wrapping Up the Year with Confidence

As year-end approaches, HR teams and business owners must balance closing out the year and planning ahead. Focusing on key areas ensures your team feels supported, recognized, and prepared for new challenges. Reflecting on lessons learned and planning for the future sets you up for a strong start in January. Prioritizing your people now will pay off when the new year begins.

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