At the end of each year, all nonprofits have a long checklist of tasks that need to be completed. Get the budget completed for the new year. Bring in as much revenue as possible. And so on. If you don’t have a dedicated human resources team, many of the annual employee-related close-out activities can be forgotten (or are unknown) altogether.
Here are a few places you can start.
Review your current employee manual for the employee benefits, policies, and procedures. Are they current and do they reflect how you are working now? Are you meeting all current state and federal regulations?
Prepare any employee notifications regarding their retirement plans, health insurance benefits, or other required compliance notices. Employees participating in these programs should be re-enrolling into selected benefit programs. Check your health insurance plan dates to be sure your employees don’t miss out on any health benefits. For most health insurance programs, enrollment ends December 15 for the upcoming year. Also, the end of the year is when notifications for employer 401k and other retirement programs should be distributed so that employees can make the necessary changes for the upcoming year.
Prepare your team for performance reviews. Make sure your team is aware of how they will be evaluated and the entire performance review process. You also need to determine what incentives, bonuses, or other recognition, if any, you will provide the team for their hard work during the year. Don’t forget, you also want to take the time to address performance deficiencies and put plans in place to create improvement in the new year.
Make sure your employee records are current. Review your employee records and I-9 files to make sure you are in compliance with record retention guidelines. You should also take the time to dispose of outdated termination records or outdated job applications properly.
Remember, human resources compliance may vary from state to state, and federal laws change. Because laws, regulations, and filing deadlines are constantly changing, check with the appropriate partners and agencies for the latest information.
Working with your payroll service or other human resources experts can help you stay and remain in compliance throughout the year.
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