Strategic HR Focus at Year-End

As 2025 is coming to a close, the People Operations teams across many industries are engulfed with their annual year-end processes. While this time of year is filled with tactical tasks—such as updating handbooks, performance evaluations, and budgeting—it’s important to pause and consider how your organization is preparing for the future. Thoughtful planning, strategic thinking, and a sharp focus on both operational efficiency and long-term success will set a strong stage for the coming year.

In 2025, there was a substantial shift that took the focus from stability to adaptability. Throughout the planning process, it is critical to pay attention to the broader strategic direction of the organization, collaborating with department leaders to understand how decisions in one area impact the workflow of another. The following are some strategic ways to make year-end deadlines more impactful.

Strategic Focus with Collaboration

At year-end, many leaders find it difficult to balance the time devoted to the long-term vision of the business with the immediate needs that keep it operating.

A common reason People Operations is set back is the perception that discussions about future talent can be brief or that HR responsibilities can be handled as routine checklist items, rather than guided by dedicated People Operations expertise. This is a risky proposition that suggests an underappreciation of the perspectives that stem from People Operations’ direct connection to the workforce. If HR leadership is not a direct participant in the strategic planning that happens at year-end, miscommunication and overlap of effort can occur, causing many undesirable ripple effects.

In short, full collaboration between People Operations, Finance, Operations, and Executive Leadership transforms year-end planning from an administrative task into a strategic exercise that aligns the workforce decisions with business objectives.

Reactive vs. Proactive

We are already in the midst of Q4. Have you started your strategic plan for 2026? If not, start today, and plan to start earlier next year. Waiting too long to focus on key priorities can lead to reactive, hasty decisions that may not serve your organization well. Being reactive can lead to misguided agreements or partnerships formed out of convenience—driven by the need to check a box or delegate a task—rather than by strategic intent.

Benefits and compensation are a good example of areas that should be addressed well before year-end. It is important to evaluate the benefits you offer to determine whether they align with the needs of your team, the organization’s strategic plan, budget, attract talent, and are compliant with regulations. If you wait until the end of the year or when your provider comes to you with the renewal quotes on last year’s plan design, you will usually have a very small window to perform the right amount of due diligence to ensure that the provider and plan align with your needs. With 401(k) and similar plans, it’s vital to check plan requirements related to required year-end data submission dates to avoid potential penalties. Many plans require data submission between January 31 and February 15. Consider requesting early testing to mitigate potential issues. It is never fun failing testing and having to return money and reprocess W-2s.

A comprehensive, strategic People Operations plan and well-built compliance calendar can be extremely helpful in mitigating these issues. An effective calendar identifies key initiatives, milestones, deadlines, and related considerations or steps that are expected to be especially impactful and require added preparedness in the year ahead. It should also note dependencies on other groups or leaders, such as times when they will need to provide information or input. Developing a strategic plan that incorporates a detailed project timeline, compliance due dates, and key internal deadlines is an effective way to stay proactive rather than reactive.

Develop the Future Impact

The end of the year is also an opportunity to reflect on the accomplishments from the past year and to intentionally structure the year to come. In 2026, the future belongs to adaptive, tech-enabled, and human-centered organizations. Leaders should set direction across the following areas:

• Regulatory Compliance: Stay ahead of local, state, and federal labor laws. New regulations continue to emerge in areas such as protections for pregnant workers, pay transparency, data privacy, and AI ethics. Ensure your employee handbook, policies, and procedures are updated to reflect any changes needed to remain compliant.
• Performance Growth: Are your performance programs providing real-time feedback and effectively tracking goal progression? Have you set clear, achievable goals that help employees understand how their contributions align with the organization’s objectives?
• Strategic Workforce Planning: Do your current staffing levels and skillsets align with the organization’s strategic goals? Does your forecast account for promotions and address skill gaps? Consider your staffing, training, and succession plans for the year ahead. In 2026, planning requires a clear understanding of who you will need, not just who you have today.
• Succession Planning and Talent Development: Are you embedding continuous learning into your culture? Are you using customized training programs that reflect your organization's mission, vision, and values?
• Employee Engagement and Retention: Data can reveal critical insights—such as manager effectiveness and employee needs—that help mitigate turnover spikes. When was the last time you gathered employee feedback through a survey or conducted stay interviews? High engagement drives stronger retention rates and higher productivity. Understanding what keeps your employees motivated and fulfilled is key to sustaining both.
• Total Rewards: Does your compensation philosophy support competitive pay while also emphasizing flexibility, purpose, and well-being? Employees today want more than just a salary. Use market data for a holistic view of where you stand and identify the adjustments needed to stay competitive.

• HR Information Systems: What HR metrics are you currently tracking, and which ones should you be tracking? Have you created an HR dashboard that provides leadership with the data needed to make informed, data-driven business decisions?
• Communication and Transparency: Do you have consistent communication channels that help employees understand the “why” behind business decisions? Are you leveraging technology to enable leaders to model transparency effectively?

The areas above are only a few of the many moving parts that are defined by an effective People Operations strategy.

Strengthening Your Future

This time of year is an opportunity to focus on the future. Envision what you want the organization to look like at the end of 2026, and identify the right tools and talent needed to make that happen. Reflect on the wins and losses from the past year and leverage this knowledge to propel the organization forward. Collaborate with the leadership team to align the organization’s goals for the upcoming year across all functional areas. Pause, reflect, and realign so your organization continues to grow and progress in the year ahead.

This should serve as a launch pad for progress and future strategic focus. The more you collaborate and leverage strengths within your team, the stronger your foundation will be. The future should be intelligent, strategic, and human at the core.

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If you’re seeking support in any of the areas mentioned above—or across your entire People Operations strategy—our team brings the expertise and partnership needed to help you confidently shape your organization’s future plan. Invite us in for a conversation. We are happy to help. We’ve partnered with leaders from over 6,000 businesses in our 29-year history and are ready to put our experience to work with you.