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Creating an HR End-of-Year Checklist in 2022

January 6, 2023

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There is no question that the holiday season and the end-of-the-year period can be challenging for HR departments everywhere. In the final months of 2022, HR managers are facing numerous questions and multiple new challenges: payroll and employee benefits, resignations and recruiting, performance reviews, the impact of inflation, and various new economic issues. However, managers can prepare for the end of the year by simply creating a checklist that includes at least four key issues to analyze and address before 1st January. The checklist below can provide a model that will help managers focus on the most essential tasks they need to accomplish to start 2023 the right way.

Payroll and Employee Benefits

Employers who offer competitive salaries and benefits are showing their employees, in very obvious ways, that they care about their wants and needs, which can result in a happier and more productive team. A recent Pew Research Center study also shows that 63% of the US employees who decided to quit their jobs in 2021 cited low pay as one of the reasons. In fact, a fair salary and good benefits can solve the most critical issues cited by workers as major reasons for quitting their jobs.

HR managers should keep in mind that typical employee benefits include insurance and paid time off. But even small benefits, like free snacks and coffee, can increase job satisfaction.

Resignations and Recruiting

Managing resignations and recruiting has never been easy for HR managers, but the last two years have proved even more difficult than usual. According to The Washington Post, approximately 4.3 million Americans quit or changed jobs in December 2021 alone, prompting US journalists and analysts to label the trend as “The Great Resignation”. While numerous workers have chosen to leave the workforce altogether to care for family members during the COVID-19 pandemic, others said that low salaries, lack of future opportunities, and feeling disrespected by their employers were the primary causes for quitting.

Offering fair salaries is undoubtedly extremely important, but HR managers should also consider providing benefits that can help workers overcome stress and allow them to care for their children or relatives.

Effective Performance Reviews

Performance reviews are important for helping workers engage in constructive discussions, set significant goals, and find new ways of boosting work performance. However, the recent Pew Research Center survey proves that many American workers already feel disrespected or disregarded by their employers, which can help HR managers design better performance reviews that are more employee-centered.

According to the Harvard Business Review, HR managers should rethink the traditional performance management process and consider replacing annual reviews with informal check-ins between managers and workers.

The Impact of Inflation and Other Similar Issues

Rising inflation and other economic concerns are undoubtedly among the most important issues facing both managers and employees this year. According to a Bank of America survey, 71% of US workers have recently reported that the cost of living exceeds their wages and benefits. The report proves that, although many people in the US are currently employed, 6 in 10 workers are worried about their financial situation. Lorna Sabbia, head of the retirement and personal wealth solutions at Bank of America, said the main reason for concern is inflation. However, inflation is not the only economic issue facing Americans this year. Similar studies have also shown that the cost of utilities has also increased year-over-year.

HR managers should take the time to analyze the true impact of inflation and other economic issues on their workers. While it might not be advisable to significantly increase salaries and benefits during times of economic hardship, keeping up with surging inflation is a must. 

Using the End-of-Year Checklist

Creating an end-of-year checklist is an effective way to plan and review HR initiatives for the coming year. Managers should thoroughly analyze the information, use the new data to update wages and benefits, and rethink the recruitment and performance management processes at the beginning of 2023. Moreover, they should also consider the fact that recent concerns, such as inflation and other economic issues, could impact workers’ stress levels and ultimately affect their productivity.