As the year winds down, companies often breathe a sigh of relief — but for HR, December can be one of the busiest months. Between holiday scheduling, year-end compliance, and setting up for a new year of growth, there’s a lot to get done. At HR-Strategies, we recommend taking a strategic approach now to set your company up for a smooth and successful 2026.

1. Wrap Up Year-End Compliance and Recordkeeping

• Update employee files: ensure all contact info, emergency contacts, and personal data are current.
• Conduct an internal audit of compliance-related documents: verify I-9 forms (or applicable eligibility documentation), benefits elections, payroll records, and personnel records.
• Prepare for tax- and benefit-filings: make sure your payroll closes cleanly, bonuses or commissions are accounted for correctly, and necessary tax forms (W-2, 1099, or benefit-related) are ready for distribution.

2. Review Compensation, Benefits & Holiday Pay Policies

December is a great time to revisit compensation and benefits before the new year:

• Confirm holiday pay, year-end bonuses or incentive payments, so employees receive them on time and accurately.
• Review benefits enrollments, benefit plan renewals, and deductions to ensure everything is aligned for the coming year.
• Consider whether compensation levels remain competitive — especially as regulatory and labor market pressures (e.g. minimum-wage changes, overtime laws, pay transparency) intensify heading into 2026.

3. Plan Holiday Scheduling, Time-Off & Staffing Carefully

The holidays bring both celebration and scheduling headaches. To avoid staffing problems or unhappy employees:

• Encourage employees to submit PTO/time-off requests early, and approve according to fair, transparent policies.
• Offer flexibility where possible — shift swaps, compressed schedules, or remote/flex time — to accommodate personal holiday plans while maintaining coverage.
• Cross-train key roles or utilize temporary/seasonal staff if necessary to avoid disruptions when regular staff take time off.

4. Recognize Achievements & Build Morale — Even (Especially) at Year-End

The end of the year is an ideal time to celebrate successes, recognize hard work, and boost engagement for the year ahead:

• Create a “year-end wins” board or kudos system so employees — including behind-the-scenes staff — can highlight their accomplishments.
• Consider small holiday gestures: appreciation messages, flexible schedules, or well-being resources. These go a long way toward retention and motivation.
• Plan ahead for 2026: whether that means new performance reviews, training plans, staffing forecasts, or benefits upgrades — use December as a time to reflect and strategize.

5. Let HR-Outsourcing Handle the Load — Focus on What You Do Best

This December, outsourcing your HR to a trusted partner like HR-Strategies can make all the difference. We handle the heavy lifting — compliance, payroll, record-keeping, benefits administration — so that you can stay focused on your core business. If you don’t have the bandwidth, our team can help with payroll & benefits processing and much more! From all of us at HR-Strategies, we wish you a productive close to 2025 — and a happy, organized, and compliant start to 2026. 🎉