Year-end is more than a time to wrap up payroll and celebrate another year. It is also an opportunity to take a closer look at your workforce, policies, benefits, compliance responsibilities, and HR processes before the new year begins. 

Use this checklist to review the key HR items your small business should address before 2026 ends. 

Key Takeaways 

• Review your records. Make sure employee, payroll, benefits, and HR information is accurate before the year ends. 
• Prepare for year-end reporting. Review payroll records and make sure you’re ready for W-2 processing and other applicable requirements. 
• Address outstanding employee matters. Don’t allow unresolved performance, disciplinary, or employee relations issues to carry over without a plan. 
• Look ahead to 2027. Review workforce needs, hiring plans, benefits, and compensation considerations. 

What employee and payroll information should you review before year-end?What employee and payroll information should you review before year-end? 

Start by making sure your employee records are accurate and up to date. Small errors can create problems when it’s time to process tax forms or make changes in the new year. Make sure any changes that occurred throughout the year have been properly reflected in your HR and payroll systems. 

Review: 

• Employee names and addresses 
• Social Security numbers and other required employee information 
• Employment status and job titles 
• Pay rates and compensation changes 
• Direct deposit information 
• Federal and state tax withholding information 
• Employee classifications 
• New hires, terminations, and status changes 
• Timekeeping and payroll records 

How should small businesses prepare for W-2 processing? 

Year-end is the time to make sure your payroll records are ready for W-2 processing. 

Review employee wage and tax information, confirm that payroll records are complete, and identify any discrepancies that need to be corrected before W-2s are prepared and distributed. 

Employers should also make sure they understand applicable federal, state, and local reporting requirements and deadlines for the upcoming tax season. 

What should you review about PTO and vacation balances? 

Review each employee’s available paid time off (PTO) or vacation balance before the end of the year. 

Check your policies to determine: 

• Whether unused PTO carries over 
• Whether there is a maximum carryover amount 
• Whether unused time is paid out 
• When employees need to use accrued time 
• How PTO requests are handled around the holidays 

State and local laws may also affect how employers can administer certain types of paid leave, so make sure your policies and practices align with the requirements that apply to your employees. 

What holiday pay and scheduling rules should you confirm? 

Holiday schedules can create questions about employee hours, overtime, paid holidays, and time off. 

Before the holidays, confirm which days your business will be closed, which employees are expected to work, how you handle holiday pay, and how employees should record their time. 

If your business has a holiday pay policy, make sure managers and employees understand it. Federal law generally does not require private employers to provide paid holidays, but state or local requirements and company policies may apply. 

Are your employee handbook and HR policies still up to date? 

The end of the year is a good time to review your employee handbook and identify policies that need updating for 2027. 

Consider whether your policies accurately reflect your current: 

• Workplace practices 
• Remote or hybrid work arrangements 
• Attendance and scheduling expectations 
• Paid time off policies 
• Leave policies 
• Technology and social media expectations 
• Workplace conduct standards 
• Safety procedures 
• Employee benefits 

Changes in federal, state, or local employment requirements may also mean certain policies need review or revision. 

What employee performance or disciplinary matters should be addressed? 

Don’t let unresolved employee issues carry over into the new year without a plan. 

Review outstanding performance concerns, disciplinary matters, employee relations issues, and documented coaching conversations. Make sure relevant documentation is complete, consistent, and stored appropriately. 

If an issue requires additional action, determine who is responsible for addressing it and establish a timeline for the next steps. 

What should you review before the next benefits enrollment period? 

If your business recently completed or is preparing for open enrollment, make sure employees have received the information they need about their benefits. 

Review whether: 

• Employees completed required enrollment steps 
• Benefit elections were submitted accurately 
• Employee contributions are correct 
• Payroll deductions reflect current elections 
• Employees received required notices or communications 
• Benefit changes are ready to take effect in 2027 

It’s also a good time to review how your current benefits package supports your workforce and whether you should consider any changes for the coming year. 

What should small businesses review about employee classifications? 

Year-end is a good time to review whether employees are properly classified, especially if your business has experienced changes in roles, responsibilities, pay structures, or work arrangements during the year. 

Review applicable employee classifications and make sure your payroll and HR records reflect those classifications accurately. Classification questions can involve wage-and-hour, tax, benefits, and other legal requirements, so employers should seek qualified guidance when needed. 

What HR records should your business review and retain?What HR records should your business review and retain? 

Take time to make sure important HR records are organized and retained according to applicable requirements and your company’s recordkeeping practices. 

Depending on the record, this may include: 

• Payroll and timekeeping records 
• Employee personnel records 
• Hiring and onboarding documentation 
• Benefits records 
• Leave documentation 
• Performance and disciplinary documentation 
• Workplace injury and safety records 
• Required employment and tax records 

A year-end review can help you identify missing information before you need those records. 

What should you review about workplace safety and workers’ compensation? 

HR and workplace safety responsibilities don’t stop at the end of the calendar year. 

Review workplace injury records, safety incidents, workers’ compensation claims, and any outstanding safety concerns. Consider whether your employees need updated training or whether certain workplace hazards need addressing before 2027. 

Year-end can also be a good time to review your workers’ compensation information and make sure relevant employee and payroll data is accurate. 

What hiring and workforce needs should you plan for in 2027? 

Your year-end HR review should look forward as well as backward. 

Review your hiring activity, turnover, open positions, employee growth, and anticipated business needs. Consider where your workforce may need to expand or where certain roles may need additional support in 2027. 

Ask: 

• Which positions will we need to fill? 
• Do we expect to add or reduce headcount? 
• Where did we experience turnover in 2026? 
• Are there skill gaps on our team? 
• Do compensation or benefits need to be reviewed? 
• What recruiting challenges should we plan for? 

How can GMS help small businesses prepare for the new year? 

For small businesses, keeping up with HR responsibilities can be challenging when HR is only one part of your job. GMS can provide support with many of the administrative responsibilities involved in managing employees, helping businesses enter the new year with organized HR processes and resources. 

GMS can support your business with: 

1. Payroll administration to help manage employee pay and year-end payroll processes 
2. HR support for employee questions, policies, and day-to-day HR needs 
3. Benefits administration to help manage employee benefits and enrollment 
4. Compliance support to help businesses keep track of applicable HR requirements 
5. HR technology through GMS Connect to help organize employee and HR information 
6. Workplace safety and risk management to help support a safer workplace 
7. Employee onboarding and management throughout the employment lifecycle 

A year-end HR checklist can help you identify what needs attention now and what to carry into 2027. 

GMS can help you simplify the HR side of your business so you can spend less time managing administrative tasks and more time focused on your people and your goals for the year ahead.

Holiday hiring can help businesses meet increased demand, but bringing on temporary employees also creates extra HR responsibilities. From determining how many employees you need to deciding what happens when the season ends, having a plan can help you manage your workforce more efficiently and reduce last-minute issues. 

Key Takeaways 

• Plan your staffing needs early so you know how many seasonal employees you need and when you’ll need them. 
• Set clear expectations around job responsibilities, schedules, overtime, pay, and the length of seasonal employment. 
• Handle compliance requirements carefully, including worker classification, required paperwork, payroll, and applicable employment regulations. 
• Give managers a communication plan so seasonal employees receive consistent training, feedback, and support. 
• Evaluate seasonal employees for long-term opportunities before their temporary assignments end. 

What should businesses do before hiring seasonal employees? 

Start by determining how much additional support your business will actually need. Review previous holiday seasons, anticipated sales or customer volume, operating hours, employee availability, and any planned time off. 

Consider: 

• Which departments will need additional employees? 
• When will you need the most support? 
• How many employees will you need? 
• How long will seasonal employees be needed? 
• What shifts and hours will they be expected to work? 

Planning your staffing needs before posting jobs can help you avoid understaffing and prevent you from hiring more employees than you need. 

What should you include in a seasonal job description? 

A seasonal job description should clearly explain what the employee will be responsible for and what they can expect from the position. 

Include information such as: 

• Job responsibilities and qualifications 
• Expected start and end dates 
• Typical hours and shifts 
• Weekend or holiday availability 
• Physical requirements, when applicable 
• Pay information 
• Any required experience or training 

Being transparent about the position from the beginning can help attract candidates who are better suited to the role and reduce misunderstandings after they’re hired. 

How should seasonal employees be classified? 

A seasonal employee should be classified based on the nature of the working relationship and applicable employment rules, not simply because the employee is temporary. 

Many seasonal workers are employees and may be subject to wage, tax, payroll, and other employment requirements. Misclassification can create compliance risks for an employer. 

If you’re uncertain about how a seasonal worker should be classified, consult qualified HR or compliance professionals before the employee begins working. 

What should employers communicate about seasonal schedules and overtime? 

Employers should explain scheduling and overtime expectations before seasonal employees begin working. 

Let employees know how schedules are created, how they should communicate their availability, what happens when schedules change, and how they should record their time. Employers should also understand applicable overtime requirements and make sure employees accurately report all hours worked. 

Clear expectations can help managers maintain adequate staffing while reducing confusion for employees during the busiest part of the season. 

What paperwork is required when hiring seasonal employees?

Seasonal employees generally need to complete the same required employment paperwork that applies to their employment situation, even if they will only work for a limited period. 

Depending on the employee and employer, this may include tax forms, employment eligibility documentation, direct deposit information, company policies, and other onboarding documents. 

A consistent onboarding process helps ensure new employees have the information they need while helping employers keep important employee records organized. 

Do seasonal employees need workplace safety training? 

Seasonal employees should receive the workplace safety training that applies to their job duties and work environment. 

Temporary employees may be unfamiliar with your equipment, processes, facility, or safety procedures, making proper training especially important. Employees should understand how to perform their jobs safely, report hazards or injuries, and raise safety concerns. 

Managers should also make sure seasonal employees know where to go with questions and who is responsible for addressing safety issues. 

What should seasonal employees know about payroll and holiday pay? 

Seasonal employees should understand when they will be paid, how they need to record their hours, and who to contact with payroll questions. 

Employers should also clearly communicate their policies regarding holiday pay, bonuses, or other seasonal compensation. Holiday pay isn’t automatically required simply because an employee works on a holiday, so employers should understand which requirements apply and clearly communicate their own policies. 

Accurate timekeeping is especially important during the holiday season, when employees may work different shifts or additional hours. 

How can managers effectively communicate with seasonal employees? 

Managers should have a consistent plan for communicating expectations with seasonal employees. 

Before the busy season begins, make sure managers know how to: 

• Explain job responsibilities and performance expectations 
• Communicate schedule changes 
• Provide training and feedback 
• Address attendance or performance concerns 
• Answer employee questions 
• Escalate HR or safety issues when necessary 

Seasonal employees may be new to both the organization and their role. Consistent communication can help them become productive more quickly and feel connected to the team. 

How can businesses decide which seasonal employees to keep? 

The holiday season can give employers an opportunity to evaluate potential long-term employees. 

Look at factors such as reliability, performance, attendance, skills, customer interactions, teamwork, and overall fit with the position. If a seasonal employee has demonstrated that they could be a good long-term addition, consider discussing permanent opportunities before their seasonal assignment ends. 

Planning ahead can make the transition from seasonal to permanent employment smoother for both the employee and the employer. 

How can GMS help businesses manage seasonal hiring? 

Managing a larger workforce during the holidays can put additional pressure on HR teams. Group Management Services (GMS) can help businesses simplify many of the administrative responsibilities that come with managing employees, allowing employers to spend more time focusing on their people and operations. 

As a professional employer organization (PEO), GMS can provide support with areas such as: 

• HR administration: Get support with day-to-day HR questions and employee management. 
• Payroll: Help manage payroll administration and timekeeping as your workforce and hours fluctuate. 
• Compliance: Access HR and compliance resources to help navigate employment requirements. 
• Onboarding: Streamline the process of bringing new employees onto your team. 
• Workplace safety: Access safety and risk management resources to help support a safer workplace. 
• HR technology: Use GMS Connect to help manage employee information and HR processes. 

Whether you’re hiring a few seasonal employees or adding significant temporary support, having the right processes and HR resources in place can make the busy season easier to manage. 

Ready to make holiday hiring less of a headache? Learn how GMS can help simplify your HR, payroll, compliance, and workplace safety needs.

Starting November 8, 2026, New York employers will have new obligations when current or former employees request access to their personnel records. Employers will need processes in place to locate responsive records, respond within a short timeframe, notify employees when certain negative information is added to their files, and preserve personnel records for at least three years after employment ends.  

For small businesses, the biggest challenge may not be understanding the law itself. It may be figuring out where employee records are stored, who responds to requests, and whether your business can produce a complete file quickly enough to meet the new requirements. 

Here’s what New York employers should know and do now. 

Key Takeaways 

• The law takes effect November 8, 2026. 
• Current and qualifying former employees will have personnel-record access rights. Former employees generally have three years after separation to request access.  
• Personnel records must generally be preserved for at least three years after separation. Other applicable laws may require longer retention periods for specific records.  
• Now is the time to review your processes. Map where employee records are stored, establish ownership of requests, review policies, and confirm vendor readiness. 
• Monitor future developments. Amendments are anticipated during the 2027 legislative session that could clarify aspects of the law.  

What does New York’s new personnel records law require? 

New York’s new law, Section 210-b of the New York Labor Law, gives current and former employees a statutory right to access their personnel records. 

The law takes effect November 8, 2026, giving employers a limited amount of time to review their current recordkeeping and response processes.  

Among other requirements, the law generally requires employers to: 

• Provide current and former employees with a copy of their personnel file after a written request
• Respond within five business days 
• Provide the records at no charge 
• Notify employees within 10 days when certain negative information is added to their personnel file 
• Give employees an opportunity to dispute certain information through a written rebuttal 
• Preserve personnel records without deletions for at least three years after employment ends 
• Avoid retaliation against employees who exercise their rights under the law  

The law applies broadly to New York employers, including private-sector employers. It also covers former employees who separated from employment within the preceding three years.  

What rights do current and former employees have? 

Employees and qualifying former employees will have the right to request access to their personnel records in writing. 

The law generally covers employer-maintained records related to employment decisions, including records concerning hiring, advancement, compensation, or discipline. Examples include applications and resumes, job titles and descriptions, compensation information, performance evaluations, warnings, probationary records, signed waivers, and disciplinary or termination documents.  

Former employees are also covered, with a three-year lookback period after separation from employment. 

Employees may also dispute information in their personnel records. If an employer and employee cannot agree on whether to amend or remove disputed information, the employee can submit a written rebuttal that becomes part of the record and must accompany the disputed material when it is subsequently shared outside the organization.  

How quickly must employers respond to personnel record requests? 

Employers will have five business days after receiving a written request to provide a copy of the personnel file. 

That timeline is one of the biggest operational considerations for employers. 

A personnel record request may sound simple, but an employee’s information may be spread across multiple systems and locations. A business might have documents in a human resources information system (HRIS), payroll system, manager files, shared drives, email, paper files, or with an outside HR or payroll provider. 

“The biggest mistake employers can make is assuming employee records are all stored in one place. In reality, information is often spread across HR systems, payroll platforms, manager files, email, and third-party providers. With New York’s new personnel records law requiring a response within five business days, employers should use this time to identify where records are kept, establish ownership of requests, and create a clear process before the law takes effect.”

— Nyleve Mills, HR Account Manager, GMS

Employers should not wait until their first request arrives to figure out who has access to these records or how they will be collected. 

What information could be included in a personnel file? 

The law uses a broad definition of personnel records and identifies several specific categories of information. 

Depending on the circumstances, personnel records can include: 

• Employee identifying information 
• Job title and description 
• Compensation information 
• Start date 
• Applications and resumes 
• Performance evaluations 
• Written performance warnings 
• Probationary records 
• Employee-signed waivers 
• Termination notices 
• Disciplinary records 

The law also addresses records maintained by third-party service providers on an employer’s behalf, meaning outsourcing record storage does not eliminate the employer’s responsibility to comply.  

Employers should also be careful about what information belongs in a personnel file. Certain records, including medical or accommodation-related information, may be subject to separate confidentiality and recordkeeping requirements.  

What challenges could small businesses face when responding to requests? 

The five-business-day response period could create practical challenges for employers without a dedicated HR department. 

Common challenges may include: 

• Finding the records. Employee information may be stored in multiple systems or locations. 
• Determining what is responsive. Employers may need to determine which documents fall within the law’s definition of a personnel record. 
• Protecting other employees’ information. Records may contain information about other individuals that should not be disclosed because doing so could create privacy concerns. 
• Coordinating with vendors. Payroll companies, HR technology providers, professional employer organizations (PEOs), or other third parties may maintain records on an employer’s behalf. Employers should know how quickly they can retrieve those records.
• Tracking deadlines. A request cannot simply sit in an HR inbox. Employers need a process for documenting when a request was received and who is responsible for completing it. 

For small businesses, having a clear process before the law takes effect can make responding to a request significantly more manageable. 

What should New York employers do before November 8? 

Employers should use the time before the effective date to evaluate how they create, store, access, and maintain personnel records. 

Start by mapping where employee records currently live. Include your HR system, payroll platform, paper files, shared drives, manager files, and third-party providers. 

Then establish a process for handling a personnel record request from start to finish. 

Your process should identify: 

1. Who receives the request 

2. Who determines what records are responsive 

3. Where records need to be collected from 

4. Who reviews records before they are provided 

5. How privacy concerns are addressed 

6. How the five-business-day deadline is tracked 

7. How the response is documented 

8. Who handles an employee’s dispute or rebuttal 

Creating this process now can help prevent a rushed response later. 

What changes should employers make to their recordkeeping practices? 

The new law is a good reason to take a closer look at how your organization manages personnel records. 

Consider creating a consistent personnel-file structure so similar records are stored in the same place for every employee. Digitizing paper records may also make it easier to locate and produce documents when necessary. 

Employers should also review their retention schedules. The new law requires personnel files to be preserved intact for at least three years after an employee’s separation, although other laws may require certain records to be retained for longer periods.  

Your recordkeeping process should also account for records maintained by outside vendors. Confirm that your providers can locate and transmit responsive records quickly enough to help you meet the five-business-day deadline. 

Should New York employers update their employee handbook or HR policies? 

The new law may warrant updates to policies and procedures addressing personnel records and employee requests. 

Employers should consider whether their handbook or internal HR policies accurately explain: 

• How personnel records are maintained 
• Who handles employee record requests 
• How employees can submit requests 
• How the company handles personnel record disputes 
• How records are retained 
• Who has access to confidential employee information 

Employers should also make sure managers understand that performance documentation and disciplinary records may ultimately be subject to an employee’s access rights. 

What is the new 10-day notice requirement for negative information? 

One of the law’s additional requirements is that employers notify employees within 10 days when certain negative information is added to their personnel file. The statute does not clearly define every situation that qualifies as negative information, creating uncertainty for employers.  

Employers should review their performance management and disciplinary processes to determine how to incorporate this notification requirement. 

Managers should also understand that adding documentation to an employee’s file may trigger additional HR responsibilities. 

Because the law’s definition and application of “negative information” may be clarified further, employers should monitor future guidance and legislative developments. 

What should employers know about the law’s enforcement? 

The New York Attorney General has exclusive enforcement authority under the new law. Civil penalties can range from $500 to $2,500 per violation, and employees do not have a private right of action under this particular statute.  

The law also prohibits retaliation against employees who exercise their rights under the statute. Because this is a new law, employers should continue monitoring legal developments and any future guidance or amendments that may clarify how to apply the requirements. 

How can GMS help New York employers prepare? 

For small businesses, preparing for a new personnel records requirement can be difficult when HR responsibilities are already spread across business owners, managers, and administrative teams. 

Group Management Services (GMS) can help businesses organize and manage many HR processes related to employee records, documentation, payroll, and compliance. 

GMS can support employers with: 

• HR guidance for employee documentation and day-to-day HR questions 
• HR technology through GMS Connect to help organize employee and workforce information 
• Employee record management and HR administration 
• Compliance support to help businesses stay aware of changing employment requirements 
• Employee onboarding and offboarding processes 
• Workplace policies and documentation 
• Payroll and employee data management 

GMS can help your business navigate the HR processes behind these changes and build a more organized approach to employee records, documentation, and compliance. Contact us today to get started.

Human Resources (HR) and payroll teams manage some of the most sensitive information within a business, including employee Social Security numbers, compensation information, tax documents, banking details, and benefits records. With so much confidential data at their fingertips, protecting these systems should be an ongoing priority. 

From using multi-factor authentication to limiting access to sensitive records, these five cybersecurity best practices can help HR and payroll teams reduce security risks and better protect employee data. 

Key Takeaways 

• Strengthen login security with multi-factor authentication and strong passwords. 
• Limit access to employee information based on job responsibilities. 
• Train employees to recognize phishing emails and suspicious requests. 
• Keep HR and payroll systems updated with the latest security patches. 
• Use secure systems to store and share sensitive employee records. 

1. Enable Multi-Factor Authentication 

Passwords alone aren’t enough to protect sensitive HR and payroll systems. Multi-factor authentication (MFA) adds another layer of security by requiring users to verify their identity through an additional method, such as an authentication app, verification code, or biometric authentication. 

Enabling MFA for payroll, benefits, HR, and other systems containing sensitive employee information can help prevent unauthorized access, even if a password is compromised. Businesses should prioritize MFA for employees with access to sensitive information and administrative accounts. 

2. Limit Access to Sensitive Information 

Not every employee needs access to personnel files, payroll data, or benefits records. Giving employees access only to the information required for their role can help minimize security risks. 

Role-based access controls allow organizations to determine which employees can view, edit, or manage specific types of information. 

Access should also be reviewed when employees change positions or leave the organization. Removing unnecessary permissions can help prevent former employees or employees in new roles from retaining access to information they no longer need. 

3. Train Employees to Spot Phishing Attempts 

Cybercriminals often target HR and payroll departments because employees in these roles regularly handle personal and financial information. 

A phishing email may appear to come from an executive, employee, vendor, or another trusted contact. It could ask an employee to send sensitive information, change direct deposit details, open an attachment, or click a link. 

Regular cybersecurity training can help employees recognize common warning signs, such as: 

• Unexpected requests for sensitive information 
• Urgent requests involving payroll or financial information 
• Suspicious links or attachments 
• Unfamiliar sender addresses 
• Requests that don’t follow normal company procedures 

Employees should also know how to report suspicious messages and verify unusual requests through a trusted communication method. 

4. Keep Software and Systems Up to Date 

Outdated software can leave systems vulnerable to known security issues. Regular updates and security patches can help address vulnerabilities and keep HR and payroll technology more secure. 

Organizations should work with their IT teams and technology providers to make sure operating systems, applications, and HR and payroll platforms are updated regularly. Keeping software current is a simple but important part of maintaining a strong cybersecurity strategy. 

5. Securely Store and Share Employee Records 

Employee information should be stored in secure, approved systems with appropriate access controls and encryption. 

HR and payroll teams should also be careful when sharing sensitive information. Sending confidential employee records through unsecured email or storing them on personal devices can create unnecessary security risks. 

Before sharing employee information, consider: 

What information am I sharing? 
Only provide the information that is necessary. 

Who needs access to it? 
Confirm that the recipient is authorized to receive the information. 

How am I sharing it? 
Use company-approved, secure systems and file-sharing methods whenever possible. 

How GMS Helps Protect Employee Information 

Managing employee information across multiple systems can complicate security and data management. A centralized HR technology platform can help organizations keep employee information organized while supporting appropriate access and security controls. 

GMS Connect provides businesses with a centralized HR platform for managing employee information, payroll, benefits, and other HR processes. By bringing important HR functions together in one system, businesses can reduce the need to manage employee information across disconnected platforms. 

GMS also helps businesses manage their HR technology as part of a broader HR and payroll solution, giving organizations access to support when they need it. 

Hiring and retention are often seen as separate HR priorities, but they’re more connected than they seem. 

Employee retention starts before you hire someone. The expectations created by a job posting, interview, and offer can influence whether a new hire feels confident about their decision to join your organization and whether that confidence continues after their first day. 

A strong retention strategy begins by making sure the right candidates understand the role, the workplace, and what success looks like before they accept an offer. From there, effective onboarding and early engagement can help turn a new hire into a long-term employee. 

Why Does Employee Retention Start During Hiring? 

The hiring process is an organization’s first opportunity to establish trust with a potential employee. Job descriptions, interviews, recruiter conversations, and interactions with hiring managers all shape a candidate’s expectations about the role. 

If those expectations don’t match reality, an employee may quickly become disengaged. 

Recruitment and selection practices can influence turnover, with realistic job previews helping candidates better understand both the positive aspects and challenges of a position before accepting it.  

That makes the hiring process more than a search for qualified candidates. It is the beginning of the employee experience. 

Key Takeaways 

• Retention starts before hiring 
• Set clear expectations from the start 
• Make onboarding a priority 
• Support new hires through the first 90 days 

How Can Hiring Strategies Support Employee Retention? 

Retention-focused hiring doesn’t mean changing your entire recruiting process. It means being intentional about what candidates learn before they join. 

1. Write Honest Job Descriptions 

A job description should do more than list qualifications. 

Candidates should understand what they will actually do, who they will work with, what their schedule may look like, and what’s expected of them. Specificity helps candidates determine whether the role is genuinely a good fit. Clear job descriptions also help hiring teams evaluate candidates against the position’s actual needs.  

2. Set Expectations During the Interview 

Hiring managers should be prepared to discuss both the opportunities and challenges of the position. Candidates should understand how performance will be evaluated, what the team’s communication style is like, and what their first few months may look like. 

This also lets candidates ask questions and decide whether the organization is right for them. 

3. Consider a Realistic Job Preview 

A realistic job preview gives candidates a more complete picture of what working in a particular role is actually like. 

This could include: 

• A “day in the life” overview 
• A conversation with someone currently in the position 
• A workplace tour 
• Examples of typical projects or responsibilities 
• A discussion of common challenges 
• A job-shadowing opportunity when appropriate 

Realistic job previews can help candidates make more informed decisions and better align expectations with reality.  

And that can benefit employers, too. A candidate who decides a role isn’t right for them before accepting an offer can save both the employee and employer the disruption of an early departure. 

Why Is Job Expectation Alignment Important for Retention? 

One of the biggest opportunities to improve retention is making sure employees know what success looks like before they begin. 

Consider a new hire who expects: 

• A collaborative team but primarily works independently 
• A flexible schedule but has strict in-office requirements 
• Opportunities for advancement but no clear development path
• A manageable workload but immediately inherits responsibilities beyond the job description 

Even if the organization is a good employer, these gaps between expectations and reality can create frustration. 

How Does Better Onboarding Support Employee Retention? 

Hiring is only the beginning. 

Once an employee accepts an offer, onboarding becomes the next opportunity to reinforce the expectations established during recruitment. 

Effective onboarding should answer some basic questions: 

What am I supposed to do? 
Employees need clarity around their responsibilities, priorities, and goals. 

Who can help me? 
New hires should know who to go to with questions or when they need support. 

How does my work contribute to the organization? 
Understanding the bigger picture can help employees see the value of their role. 

What should I accomplish during my first few months? 
Clear milestones give new hires a way to measure progress. 

Onboarding shouldn’t be limited to paperwork and orientation. It should be an ongoing process that helps employees become comfortable, capable, and connected. 

What Should Employers Focus on During the First 90 Days? 

The first 90 days can set the tone for an employee’s experience, but retention shouldn’t be reduced to a single onboarding checklist. 

Instead, employers can use the first three months to create a consistent cycle of clarity, support, and feedback. 

First 30 days: Build the foundation 

Focus on: 

• Role expectations 
• Training 
• Team introductions 
• Company policies and processes 
• Access to necessary technology and resources 
• Early questions and concerns 

Days 31 to 60: Build confidence 

Focus on: 

• Increasing responsibilities 
• Regular manager check-ins 
• Feedback on performance 
• Identifying areas where additional training is needed 
• Helping the employee build relationships across the organization 

Days 61 to 90: Build momentum 

Focus on: 

• Progress toward goals 
• Long-term development 
• Career interests 
• Employee feedback 
• Opportunities for greater ownership 
• Continued manager support 

The goal isn’t to overwhelm a new employee with information. It’s to make sure they don’t feel like they’re navigating the organization alone. 

How Can Employers Improve New Hire Engagement? 

Employees are more likely to become invested in an organization when they understand their role, feel supported by their manager, and see opportunities to contribute and grow. 

Some simple ways to encourage early engagement include: 

• Schedule consistent one-on-one conversations 
• Ask new hires what questions they still have 
• Check whether the role matches what they expected 
• Celebrate early wins 
• Introduce employees to people outside their immediate team 
• Ask for feedback on the onboarding experience 
• Discuss professional development early 

Regular check-ins create opportunities to identify concerns while they’re still manageable. 

Should Companies Focus More on Retention Than Recruiting? 

Recruiting and retention shouldn’t be viewed as competing priorities. 

A company can have an excellent recruiting strategy and still struggle with turnover if employees leave shortly after being hired. At the same time, strong retention practices make recruiting more valuable because the organization is more likely to keep the people it worked to attract. 

Better Hiring Can Lead to Better Retention 

Retention doesn’t begin when an employee decides whether to stay. It begins when a candidate decides whether to join. 

Every step of the hiring process contributes to the employee experience. Honest job descriptions, realistic expectations, meaningful conversations, and effective onboarding can help new hires enter an organization with a clearer understanding of their role and a stronger foundation for success. 

At GMS, we help businesses manage the HR processes that support employees throughout their entire journey, from hiring and onboarding to benefits, payroll, and ongoing HR support. When HR works together as one system, businesses can spend less time managing administrative tasks and more time building an employee experience that helps people stay and succeed. 

As the final quarter of the year approaches, many employers are focused on hitting revenue goals, preparing for the holidays, and planning for the year ahead. At the same time, human resources (HR) responsibilities become more complex. Open enrollment begins, paid time off (PTO) requests increase, payroll deadlines approach, and compliance obligations continue to evolve. 

Without a plan, it’s easy for small issues to become larger problems. Businesses that finish the year strong typically aren’t scrambling to keep up because they’ve already put the right systems in place. 

Use this Q4 HR checklist to review your policies, payroll processes, compliance obligations, employee records, and workforce plans before year-end. 

Key Takeaways 

• Completing a Q4 HR checklist before year-end can help employers stay organized and reduce compliance risks. 
• Review your HR policies, employee handbook, payroll processes, and personnel records before workloads increase. 
• Prepare managers for attendance issues, leave requests, performance conversations, and workplace concerns. 
• Plan ahead for open enrollment, holiday staffing, year-end payroll, and workforce planning to avoid last-minute challenges. 
• A proactive year-end HR audit helps businesses enter the new year with stronger processes and fewer administrative surprises. 

Quick Q4 HR Checklist

Area	Key Action
Employee Retention	Identify retention risks and succession planning opportunities
Employee Handbook	Review policies and update outdated language
PTO Planning	Prepare for holiday staffing coverage
Wage & Hour Compliance	Review employee classifications and timekeeping
Compliance Deadlines	Track year-end filings, notices, and requirements
Payroll	Verify employee and tax information
Employee Records	Audit personnel files and documentation
Manager Training	Review documentation and employee relations procedures
Workplace Safety	Evaluate safety training and reporting processes
Hiring & Onboarding	Review recruiting and onboarding materials
Benefits & Workforce Planning	Prepare for open enrollment and next year’s staffing needs

1. Review HR Policies and Your Employee Handbook

Before year-end, review the workplace policies employees and managers rely on every day. Your employee handbook should accurately reflect current business practices and compliance requirements.

Checklist:

• Review PTO and holiday policies
• Verify attendance and scheduling expectations
• Review remote or hybrid work policies
• Update any outdated handbook language
• Review recent employment law changes
• Ensure managers understand policy enforcement expectations

Why it matters: Inconsistent policy enforcement often creates confusion, employee complaints, and avoidable HR issues.

2. Prepare for Holiday PTO Requests and Staffing Challenges

As the holidays approach, employee time-off requests often increase. Planning ahead can help maintain productivity while supporting employee work-life balance.

Checklist:

• Review PTO approval procedures
• Identify critical business functions requiring coverage
• Cross-train employees for essential responsibilities
• Establish backup coverage plans
• Communicate holiday scheduling expectations early

Why it matters: Waiting until PTO requests begin arriving can create staffing gaps and operational disruptions.

3. Audit Wage and Hour Compliance

Workload fluctuations, overtime, and flexible work arrangements can make compliance more challenging during Q4.

Checklist:

• Review exempt and non-exempt classifications
• Verify employee timekeeping procedures
• Evaluate overtime approval processes
• Confirm remote employees are accurately tracking hours
• Review state and local wage requirements

Why it matters: Wage and hour violations can result in costly penalties, employee disputes, and compliance concerns.

4. Review Upcoming Compliance Deadlines

Year-end often includes multiple HR and payroll-related deadlines. Missing even one requirement can create unnecessary risk.

Checklist:

• Review payroll tax deadlines
• Track employee benefits compliance requirements
• Verify required employee notices
• Confirm open enrollment communications timelines
• Monitor state and local employment law updates

Why it matters: A centralized compliance calendar can help ensure important deadlines aren’t missed during a busy quarter.

5. Prepare for Year-End Payroll

Accurate employee information makes year-end payroll processing significantly easier.

Checklist:

• Verify employee tax forms
• Confirm employee mailing addresses
• Review payroll deductions
• Confirm bonus and incentive plans
• Review independent contractor classifications

Why it matters: Early preparation helps reduce payroll errors, tax reporting issues, and year-end corrections.

6. Audit Employee Records

Organized and complete employee records help support compliance and better HR decision-making.

Checklist:

• Review I-9 documentation
• Update job descriptions
• Confirm employee acknowledgments are on file
• Review performance-related documentation
• Verify accommodation and leave documentation
• Ensure personnel files are complete and organized

Why it matters: Accurate records help businesses prepare for audits, investigations, or employee disputes.

7. Train Managers Before Q4

Managers play a critical role in handling workplace concerns and enforcing company policies.

Checklist:

• Review documentation expectations
• Train managers on attendance and leave issues
• Reinforce performance management procedures
• Clarify when concerns should be escalated to HR
• Review workplace conduct expectations

Why it matters: Consistent manager training helps reduce employee relations concerns and strengthens workplace culture.

8. Evaluate Workplace Safety Preparedness

Workplace preparedness extends beyond accident prevention. It also includes having a clear response plan when incidents occur.

Checklist:

• Review safety training records
• Evaluate incident reporting procedures
• Review workers’ compensation reporting requirements
• Assess return-to-work processes
• Verify emergency communication procedures

Why it matters: Strong safety procedures can reduce disruptions and help employees feel more secure at work.

9. Review Hiring and Onboarding Processes

Many organizations continue hiring throughout Q4 or begin preparing for hiring needs in the new year.

Checklist:

• Review job descriptions
• Evaluate interview processes
• Audit background check procedures
• Review offer letter templates
• Update onboarding documentation

Why it matters: Consistent hiring processes improve compliance and create a better candidate experience.

10. Prepare for Open Enrollment and Workforce Planning

Benefits administration and workforce planning often occur simultaneously during Q4, making organization especially important.

Checklist:

• Review employee benefits offerings
• Finalize open enrollment communications
• Establish enrollment timelines
• Evaluate future staffing needs
• Identify succession planning opportunities
• Review departmental hiring plans

Why it matters: Early planning helps employees make informed benefits decisions while giving leadership greater visibility into future workforce needs.

The Best Way to Prepare Your Business for Q4

Preparing for Q4 isn’t about expecting problems. It’s about putting reliable systems in place before business gets busy.

By reviewing policies, payroll procedures, compliance obligations, employee records, and workforce plans in advance, employers can reduce risk, improve efficiency, and create a better experience for employees throughout the final quarter of the year.

For growing businesses, managing these responsibilities internally can become increasingly complex. A Professional Employer Organization (PEO) can help simplify HR administration, payroll, benefits management, compliance support, workplace safety, and risk management throughout the year. By partnering with a PEO, employers can spend less time on administrative tasks and more time focusing on business growth.