10 Year-End HR Priorities That Set You Up for a Strong 2026: Thoughtful Guidance for Leaders or Owners from an HR Consultant Who’s Been There

As an HR consultant working with small and mid-sized businesses, I've seen how HR tasks can slip during the year-end rush. But the way you close out your HR year shapes how confidently you enter the next one. A few focused actions for the leader or business owner can now reduce risk, strengthen culture, and improve engagement heading into 2026. Whether your team is five people or fifty, these priorities will help you wrap up 2025 with clarity and care.

1. Clean Up Employee Records

Ensure all employee records are accurate and current: addresses, contact details, emergency info, job titles, and employment statuses. Clean records mean W-2s and 1099s reach the right people and help you avoid tax reporting issues or benefit eligibility errors.

2. Understand What's Changing in 2026

Stay ahead of employment law updates. California's minimum wage rises to $16.90/hour, Nebraska jumps to $15/hour, New York is increasing exempt salary thresholds, and Maine begins implementing Paid Family and Medical Leave. The IRS also released a draft of the new W-4 form in August 2025—start preparing now.

3. Make Performance Conversations Meaningful

Transform reviews from checkbox activities into collaborative check-ins. Discuss what went well, where there's room for growth, and what support employees need. Align individual goals with your 2026 business objectives to build buy-in and show that their growth matters.

4. Audit Payroll for Accuracy

Review payroll for discrepancies before closing your books. Finalize bonuses, commissions, pay increases, and contractor compensation. Confirm tax withholdings are correct and schedule a review with your payroll provider for 2026 compliance.

5. Revisit Your HR Budget with Strategy in Mind

HR costs are strategic investments, not just expenses. Review spending on salaries, benefits, recruiting, training, and systems. Create budget versions for conservative, expected, and ambitious growth scenarios to give yourself flexibility in 2026.

6. Approach Time Off and Holidays Proactively

Manage overlapping vacation requests early and review PTO carryover or payout policies. Clear communication about holiday scheduling reduces stress and shows you respect your team's work-life balance.

7. Update Your Handbook and Policies

Ensure your handbook reflects how your business actually operates. Update remote work guidelines, communication expectations, and benefits eligibility. Consider adding or refining policies around DEI, wellness, or professional development.

8. Make Recognition Part of the Culture

Express genuine appreciation for your team's contributions. A personal note, team shoutout, or early finish before the holidays makes people feel valued. Recognition also reinforces the behaviors and values you want to carry into the new year.

9. Prepare for New Hires in 2026

If you're hiring in the new year, refresh your onboarding process now. Strong onboarding builds connection, reduces early turnover, and helps new employees feel welcomed and set up for success from day one.

10. Map Out Learning and Development Goals

Professional growth drives engagement and retention. Review where each employee stands with their learning goals and create individual development plans for 2026 that align with both business strategy and employee aspirations.

Final Thoughts

HR doesn't have to feel overwhelming when you take it one step at a time. These end-of-year practices strengthen your business by investing in the people who make it work.

If you need support with HR audits, compliance, onboarding, or performance management, I'm here to help you build a workplace that's both human-centered and strategically sound.

Here's to wrapping up 2025 with confidence and stepping into 2026 with intention and clarity.