As the year wraps up and the holidays take center stage, HR teams often find themselves balancing celebration with cleanup. December has a way of feeling both unhurried and overwhelming: schedules shift, employees take time off, and everyone is trying to tie up loose ends before the calendar resets. That’s exactly why this is the best moment to slow down, review what’s working, and prepare your organization for a clean, organized start in 2026.

A thoughtful year-end HR checklist not only keeps you compliant but also strengthens your team, sharpens your planning, and positions your business to hit the ground running in January. Here’s what every employer should complete before January 1.

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Review Employee Files and Update Documentation

Throughout the year, it’s common for small discrepancies to show up in employee files: updated certifications that haven’t been recorded, new responsibilities that never made it into a job description, or missing emergency contacts. December is a great time to tidy these up. Clean and complete documentation gives you protection in audits, ensures evaluations are accurate, and keeps communication consistent across your team.

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Conduct Final Payroll and PTO Audits

Year-end payroll is one of the most important cycles of the entire year. Spotting errors now prevents bigger problems in January.

• Verify PTO balances and ensure you’re applying “use-it-or-lose-it” or rollover rules correctly
• Double-check holiday pay, bonuses, and special year-end incentives
• Confirm that tax withholdings and deductions reflect any changes from open enrollment

Getting payroll right now keeps everyone on the same page and prevents costly corrections later.

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Complete Performance Reviews and Set New Goals

December naturally encourages reflection, and employees genuinely appreciate having clarity about how they performed and what’s expected in the new year. A meaningful performance review helps them feel supported and gives managers insight into strengths, gaps, and potential staffing needs. This is also when many companies discover they need additional help heading into Q1, great timing to connect with Talmo & Associates for staffing support.

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Evaluate Staffing Needs for Q1

Hiring in January isn’t something that starts in January: it starts now. By looking at workload trends, forecasting new projects, and assessing team bandwidth, you can get ahead of the surge that inevitably comes with the new year. This early planning prevents burnout, helps you budget wisely, and ensures you’re not scrambling for talent when business picks up.

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Update Employee Handbooks and Policies

Laws, technology, and workplace expectations shift quickly. The end of the year is the ideal time to review your handbook and make sure everything aligns with current regulations and internal processes.

• Confirm wage and hour policies meet current state and federal guidelines
• Refine remote or hybrid work expectations
• Revisit anti-harassment, safety, and cybersecurity protocols

Clear, updated policies keep your team informed and protect your organization from unnecessary risk.

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Wrap Up Required Training

Whether you handle training quarterly or annually, December is the moment to make sure compliance courses and safety refreshers are fully completed. Missing mandatory training can lead to avoidable issues during audits or workers’ compensation claims. Sending reminders now will set you up for compliance and peace of mind in the new year.

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Review Vendor and Staffing Agency Partnerships

The end of the year offers a natural opportunity to step back and assess the relationships that help your business run smoothly. That includes payroll providers, software tools, and of course, your staffing partners. Think through what worked, what needs adjusting, and where you’d like to see improvements next year. With staffing, this might mean speeding up the hiring process, improving candidate quality, or setting clearer expectations for incoming roles. We prefer to encourage our clients to schedule a year-end planning call so we can help map out goals and hiring needs for Q1.

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Reconfirm Benefits and Open Enrollment Changes

Open enrollment changes often create a wave of small adjustments: new deductions, updated coverage, and shifting employee needs. Before the year closes, take time to verify that all elections are processed correctly and that employees have received confirmation of their choices. Ensuring everything is set now prevents payroll errors and helps employees feel confident about their benefits as they head into the new year.

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Celebrate Wins and Recognize Your Team

December is a busy month, but it’s also a chance to acknowledge the hard work your employees have put in all year long. Recognition doesn’t have to be elaborate. A heartfelt message from leadership, a team breakfast, or a small end-of-year appreciation gesture can go a long way. People remember how they feel at work, and closing the year with gratitude strengthens loyalty and boosts morale.

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Set Your HR Priorities for 2026

Once the administrative tasks are wrapped, step back and look at the bigger picture. What are the top goals for your HR team in 2026?

• Improving retention and employee engagement
• Strengthening your hiring pipeline
• Expanding training and development programs

Setting clear priorities now gives your team direction and helps you enter the year with focus instead of uncertainty.

A strong year-end checklist keeps your workplace organized, compliant, and ready for what’s ahead. It’s not just about closing out the year; it’s about setting the tone for a smoother, more productive start to 2026.

If you need help evaluating staffing needs, preparing for turnover, or building a hiring plan for Q1, Talmo & Associates is here to help. Whether you need temp, temp-to-hire, or direct hires, we can make the transition into the new year seamless.

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