As 2012 comes to a close and another new work-year begins, Human Resources Departments should take the time to review certain business practices. Getting processes and procedures in place will set the right start to 2013.
- Health Plans. Calendar year plans should check to confirm that all plans are set for the new plan year. FSA plans should have already communicated the new $2,500 salary reduction contribution limitation.
- Performance Reviews. Many employees expect feedback on performance for the year. Establishing a formal review process can help both management and employee productivity.
- Compensation. Review past compensation and determine if it is in line with job expectations and performance, along with company finances. Merit bonuses and compensation increases might be considered.
- Handbook Review. If you have a company handbook, the end of the year is a good time to review policies in the handbook to confirm that they are still being followed. Any policies that have become obsolete during the year should be removed from the handbook.
- Fair Labor Standard Act Classifications. Employers must follow the rules of the Fair Labor Standards Act (FLSA) to determine if employees should be classified as exempt or nonexempt. Exempt employees do not have to be paid overtime. Whether an employee can be classified as exempt from the FLSA is determined by the employee's job duties. Employee responsibilities throughout the year should be reviewed to determine if they are properly classified for FLSA purposes.
- Job Descriptions/Roles and Responsibilities. All employees should understand the responsibilities of their job. A year-end review of roles and responsibilities can give employees a firm footing for the upcoming year.
- Department/Company Goals. Review goals from 2012 to determine if they were achieved. Set new goals for 2013, along with priorities to develop a company-wide strategy.
- Notice Postings. Understand state and federal posting requirements to confirm that employees are being provided required documentation under applicable law.
- Personnel Information/Emergency Contact. Employers might want to maintain contact information for employees in case of an emergency. Employees can be reminded at year's end to update information stored in company files.
- Workplace Training. Employers should line up anti-harrassment, diversity and discrimination training for the next year.
- W-2. Confirm addresses for mailing or providing electronic access to Form W-2.
- Holidays. Set Company-approved holidays for 2013.
Reviewing processes at the end of the year will help start 2013 strong from an HR perspective.
