Preparing Your Human Resources Business Function for the New Year with Updated Benefits and Policies

Starting a new year offers a fresh opportunity for human resources (HR) teams to review and improve their business functions. This preparation ensures compliance with legal requirements, supports employee satisfaction, and aligns HR practices with organizational goals. Key areas to focus on include updating employee benefits, managing W-2 forms, and refreshing company policies. This guide walks you through practical steps to get your HR function ready for the year ahead.

HR workspace with updated policies and benefits documents

Review and Update Employee Benefits

Employee benefits play a crucial role in attracting and retaining talent. As regulations and market trends change, it is essential to review your benefits offerings annually.

• Assess Current Benefits

Start by evaluating the existing benefits package. Gather employee feedback through surveys or focus groups to understand what benefits are most valued and which may need improvement.

• Research Legal Changes

Stay informed about new laws affecting benefits, such as changes in health insurance requirements, retirement plans, or family leave policies. For example, updates to the Affordable Care Act or state-specific mandates may require adjustments.

• Consider New Benefits

Introduce benefits that reflect current employee needs. Options might include mental health support, flexible work arrangements, or wellness programs. These additions can boost morale and productivity.

• Communicate Clearly

Once updates are finalized, prepare clear communication materials. Use emails, webinars, or printed guides to explain changes and enrollment procedures. Transparency helps employees understand and appreciate their benefits.

Prepare and Distribute W-2 Forms

W-2 forms are essential for tax reporting and must be handled accurately and on time.

• Verify Employee Information

Confirm that all employee names, Social Security numbers, and addresses are correct in your payroll system. Errors can delay tax filings and cause frustration.

• Update Payroll Systems

Ensure your payroll software reflects any changes in tax laws or withholding rates for the new year. This step prevents mistakes in wage reporting.

• Set a Distribution Timeline

The IRS requires employers to provide W-2 forms to employees by January 31. Plan your internal deadlines to allow time for printing, mailing, or electronic delivery.

• Provide Support Resources

Offer guidance on how employees can read their W-2 forms and where to get help with tax questions. This support reduces confusion during tax season.

Refresh Company Policies and Procedures

Policies set the framework for workplace behavior and compliance. Regular updates keep them relevant and effective.

• Conduct a Policy Audit

Review all existing policies, including those on harassment, remote work, attendance, and data security. Identify outdated sections or gaps.

• Incorporate Legal Updates

Reflect changes in labor laws, such as minimum wage increases or new anti-discrimination rules. For example, some states have introduced stricter regulations on paid sick leave.

• Simplify Language

Rewrite policies in clear, straightforward language. Avoid jargon to ensure all employees understand their rights and responsibilities.

• Train Managers and Staff

Organize training sessions to explain policy changes. Managers should be equipped to enforce policies consistently and answer employee questions.

• Document Acknowledgment

Require employees to sign acknowledgments confirming they have read and understood updated policies. This step protects the organization legally.

Plan for Employee Training and Development

The new year is a good time to set training goals that align with company objectives.

• Identify Skill Gaps

Use performance reviews and feedback to find areas where employees need development.

• Schedule Training Sessions

Plan workshops, online courses, or mentoring programs to address these needs.

• Promote Career Growth

Encourage employees to set personal development goals. Support these with resources and time.

Use Technology to Improve HR Efficiency

Modern HR software can simplify many administrative tasks.

• Automate Routine Processes

Use tools for benefits enrollment, time tracking, and performance management to reduce manual work.

• Enhance Data Security

Protect sensitive employee information with secure systems and regular audits.

• Enable Remote Access

Provide platforms that allow employees and managers to access HR resources from anywhere.

Monitor Compliance and Prepare for Audits

Compliance is critical to avoid penalties and maintain trust.

• Keep Records Organized

Maintain accurate documentation of benefits, payroll, and policy acknowledgments.

• Schedule Internal Reviews

Regularly check compliance with labor laws and company policies.

• Stay Updated on Regulations

Subscribe to HR newsletters or consult legal experts to keep informed about changes.

Foster Open Communication and Employee Engagement

Engaged employees contribute to a positive workplace culture.

• Hold Regular Check-Ins

Encourage managers to meet with team members to discuss concerns and feedback.

• Promote Transparency

Share company updates and explain decisions that affect employees.

• Recognize Achievements

Celebrate milestones and successes to boost morale.