
The last months of the year are a great time for HR professionals to ensure they’re prepared for everything that needs to be done. It’s also an opportunity to evaluate which HR processes organizations want to take forward into the new year and which to leave behind. While certain HR compliance activities must be completed by the end of the year, HR professionals can also use this time of preparation to focus on tasks that will set their organizations on the right course for next year.
This article provides an overview of general, compliance-related, and employee compensation and benefits activities HR may need to tackle at the end of each year. The activities outlined in this article are not exhaustive. Because an organization’s failure to comply with certain year-end requirements can result in significant legal and financial consequences, employers are encouraged to seek legal counsel to discuss any specific issues.
General Activities
The end of the year is usually a busy time for HR professionals. They must accomplish a lot in a relatively short time period to close out the year and prepare for the upcoming one. These tasks may include:
- Completing annual performance reviews
- Asking employees to update their personal and contact information
- Backing up HR data and personnel files
- Establishing an annual budget and allocating resources
- Reviewing recruiting and hiring processes
- Creating plans for new hires
HR can also create and update succession plans and job descriptions.
The following tasks are general activities HR professionals should consider completing at the end of the year.
HR Metrics Development
The year’s end is an opportunity to review the year, analyzing what went well and where improvements can be made. This provides HR a chance to develop meaningful metrics for the upcoming year. These metrics may measure:
- Employee engagement and satisfaction
- Employee productivity
- Turnover rate, including new hire turnover
- HR growth compared to revenue
- Average time to fill open positions
- Offer acceptance rate
- Promotion rate
- Time to hire
- HR-to-employee ratio
By aligning HR metrics to long-term organizational goals, HR can positively impact an organization’s growth and facilitate strategic decision-making.
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