As the end of the financial year approaches, HR teams face a crucial period of review, reconciliation, and preparation for the year ahead. With compliance obligations, employee benefits audits, or strategic planning all on the agenda, it’s crucial that HR teams stay organised in order to finish the financial year in a strong position.

A well-structured year-end HR checklist can help HR managers and directors close the year efficiently while setting up for a successful new cycle.

In this post, we outline some of the key areas HR teams could focus on during this critical period.

 

  1. Ensure compliance with employment laws and regulations

Compliance is always one of the biggest challenges for HR teams. However, adhering to regulatory compliance is a non-negotiable at the end of the financial year. Teams must ensure that all legal requirements related to payroll, benefits, and employee records are met to avoid penalties and legal risks.

Here are a few ways in which you and your team could ensure you address your compliance in the lead-up to the financial year end.

  • Review payroll compliance: Ensure payroll has been processed accurately, including bonuses, benefits, and any outstanding payments. Double-check tax withholdings, superannuation contributions, and any required year-end adjustments.
  • Update employee contracts: Review and update employment contracts, ensuring they align with any recent regulatory changes and company policies.
  • Audit workplace policies: Evaluate HR policies such as leave entitlements, workplace safety, and harassment policies to ensure they remain compliant with current labour laws.
  • Prepare for any audits: Be ready for potential audits by organising employee records, tax filings, and compliance documents.

 

  1. Performance reviews and compensation evaluations

Year-end is the ideal time for HR leaders to conduct employee evaluations, review compensation structures, and address performance-related concerns.

  • Schedule performance reviews: Ensure all employees receive timely feedback through structured performance appraisals.
  • Identify training needs: Analyse skills gaps and develop employee training plans for the upcoming year.
  • Recognise top performers: Celebrate achievements through bonuses, promotions, and other forms of recognition to boost morale and retention.
  • Assess compensation and benefits: Benchmark salaries against industry standards to ensure competitive compensation packages.

 

  1. Finalise HR and payroll reports

Accurate reporting is essential for financial planning and compliance. HR teams should ensure all year-end payroll, benefits, and tax documents are completed correctly.

  • Generate year-end payroll reports: Reconcile payroll records and ensure accuracy in tax filings.
  • Review leave balances: Ensure accurate leave balances are recorded and adjust as needed.
  • Prepare employee tax documents: Distribute tax forms (such as P60s) in accordance with legal deadlines.

 

  1. Review employee benefits and update policies

A new financial year is a great opportunity to assess the effectiveness of your benefits program and make necessary adjustments.

  • Audit employee benefits: Review health insurance, retirement plans, and other perks to ensure they meet employees’ needs.
  • Negotiate with providers: Work with benefits providers to explore cost-saving opportunities or enhanced coverage options.
  • Communicate benefits changes: Inform employees about any updates to their benefits plans to prevent misunderstandings and ensure engagement.

Offering flexible benefits could be a great way to put your employees in the driver’s seat when it comes to choosing their own workplace perks. With a more agile approach to benefits, organisations can significantly improve their employee engagement and appeal to workers across different age, and diversity demographics.

 

  1. Plan workforce strategy for the new financial year

HR teams should use this time to align workforce planning with business goals, identifying key recruitment and retention strategies.

  • Evaluate workforce needs: Assess current headcount and forecast hiring needs based on business objectives.
  • Develop recruitment strategies: Plan hiring initiatives to attract top talent while optimising costs.
  • Enhance employee engagement: Implement initiatives that foster a positive work culture and improve retention.
  • Set diversity goals: Review diversity, equity, and inclusion initiatives and set measurable goals for the new year.

 

  1. Update HR technology and processes

Efficient HR processes and technology can enhance productivity and streamline administrative tasks. Evaluate your current HR systems and consider upgrades or improvements.

  • Assess HR software needs: Determine whether current HR technology meets business needs or if upgrades are required.
  • Automate repetitive tasks: Identify opportunities to streamline processes using automation.
  • Ensure data security compliance: Review and update cybersecurity measures to protect sensitive employee information.
  • Provide HR training: Ensure HR team members are trained on any new tools or policy updates.

 

  1. Communicate key updates to employees

Transparent communication is essential during the year-end transition. Keep employees informed about payroll updates, benefits changes, and strategic goals.

  • Hold year-end meetings: Provide employees with an overview of company performance and upcoming changes.
  • Distribute HR newsletters: Share key HR updates, upcoming training opportunities, and any new initiatives.
  • Encourage employee feedback: Gather insights through surveys or meetings to improve HR strategies moving forward.

 

Finding the right tools to support your year-end preparations

Closing out the financial year can be a complex process, but with a well-structured plan, HR teams can navigate this transition smoothly, standing them in good stead for the next financial year.

Taking the time to conduct a thorough year-end review not only safeguards compliance but could also significantly strengthen your employee engagement, streamline your HR processes and ultimately enhance your overall efficiency as an HR team.

With dedicated employee benefits software such as Strait Logics’ suite of solutions, fine-tuning your processes, and building better communications around your workplace rewards becomes much easier. Contact us today to learn how we can support your HR team’s success in the coming year.