The Small Business’ Essential HR Roadmap for January

The start of a new year is the perfect opportunity to set the foundation for anything. For small business owners, January isn’t just about new year’s resolutions—it’s also about hitting the reset button on strategic HR tasks for efficient operations, compliance, and employee engagement throughout the year. Here are the key areas to focus on as you kick off the year.

1. Update Your Employee Handbook: The start of the year is a great time to review and update your employee handbook to ensure it reflects any changes in employment laws, company policies, or benefits.

Key Considerations:

• Read our previous blog post, “Employee Handbook Ease for Small Businesses – Part I” and “Employee Handbook Ease for Small Businesses – Part II” to learn what should be included in an employee handbook.

• Review updates to federal, state, and local employment laws to include evolving regulations such as minimum wage changes, paid leave requirements, pay transparency, and artificial intelligence usage.

• Clearly outline workplace policies, remote work options, and performance expectations.

2. Set and Share Goals for the Year: Employees perform better when they understand how their work contributes to the company's mission and goals. Use January to set clear objectives for the year and communicate them to your team.

Key Considerations:

• Develop company-wide and team-specific goals.

• Schedule a team meeting to discuss these goals and how employees can specifically contribute.

• Recognize and celebrate team achievements from the previous year.

• Incorporate employee feedback into goal setting for better buy-in and engagement.

3. Conduct Compliance Audits: Avoid legal issues and start the year on the right side of the law by ensuring your business is compliant with all employment regulations through audits.

Checklist:

• Verify that your I-9 forms are accurate and up-to-date.

• Ensure compliance with wage and hour laws, especially if overtime, minimum wage, or pay transparency laws apply in your area.

• Review and update your payroll system to reflect changes to taxes or benefits.

• Double-check that your workers are classified correctly as part-time/full-time employees or independent contractors. Read our pervious blog post, “Ensuring Compliance for Independent Contractors and Employees in Your Small Business” for assistance.

• Review and revise job descriptions for accuracy.

• Confirm all required labor posters are current and posted where required.

4. Revisit Your Hiring and Retention Strategies: The labor market continues to be challenging, making January a good time to refine your strategies for finding and keeping top talent.

Key Considerations:

• Develop an employee referral program to leverage your team’s network.

• Highlight your unique company culture in job postings to attract aligned candidates.

• Conduct “stay interviews” with current employees to identify areas for improvement and areas to brag about.

5. Focus on Employee Well-Being: Starting the year with a focus on employee well-being can set a positive tone for 2024 and improve retention.

Key Considerations:

• Offer mental health resources, such as access to counseling services or wellness apps.

• Organize a team-building virtual or in-person event to foster stronger relationships among employees.

• Introduce flexible work arrangements, if possible, to support work-life balance.

6. Invest in Training and Development: Employees who feel supported in their professional growth are more likely to stay engaged and loyal. Use January to launch or revamp training programs.

Key Considerations:

• Read our previous blog post, “Top 4 HR Trainings to Transform Your Small Business from Liability to Asset” for more tips.

• Offer technical skills training to employees such as programming, project management, or accounting or soft skills such as DEI, problem-solving, or communication.

• Provide leadership training for managers to improve their ability to support teams such as sexual harassment prevention, workplace discrimination awareness, or effective performance coaching.

• Use online platforms like LinkedIn Learning or Coursera for cost-effective options.

• Develop professional development opportunities such as attending a seminar or boot camp for a certification.

7. Review Benefits and Compensation Packages: Kick off the year by ensuring your benefits and compensation packages remain competitive and are aligned with your business.

Key Considerations:

• Evaluate your health insurance and retirement plan offerings for cost-effectiveness and coverage.

• Communicate to employees any changes to health insurance and retirement plans.

• Evaluate additional benefits that can improve recruitment and retention such as cell phone reimbursement, stock options, tuition reimbursement, paid leave, or paid volunteer days.

• Benchmark your compensation against industry standards to stay competitive.

• Plan and schedule potential salary adjustments for 2025.

8. Automate and Streamline HR Processes: Save time and reduce errors by implementing or upgrading HR software solutions as your budget allows.

Key Considerations:

• Begin using payroll software to ensure timely and accurate paychecks. Read our previous blog post, “11 Tips for Small Business Owners Selecting a Payroll System” for more guidance.

• Implement employee self-service portals for easier access to benefits and tax forms.

• Leverage time-tracking tools to manage schedules and compliance.

• Assess cybersecurity of employee data systems to properly protect confidential employee data. Read our previous blog post, “The Vital Role of Data Privacy Policies in Your Small Business” to develop a data privacy policy.

Final Thoughts

January is a great time to set the tone for the rest of the year. By approaching HR as a dynamic, strategic function, you're not just managing employees, you're also building your competitive advantage.

Need personalized guidance navigating these January HR strategies? CPR specializes in supporting small businesses through strategic HR transformation. Contact us today to get started. Let’s make 2025 your best year yet!

Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.