HR Checklist: Set Your Business Up For Success in the New Financial Year

A new financial year is much like the start of a calendar year.

For business owners and employers, it’s the ideal time to look back on the previous year, and plan for the coming one.

This is also a good time for businesses to assess their Human Resources functions. Whether you’re a business with an in-house HR team, or one that doesn’t, this checklist should help you get started for the new financial year.

Review and update HR policies

This might seem like a no-brainer, but we encourage businesses to review their existing HR policies, and update them if needed for the new FY. What might have been a relevant policy in the past year might not be in the new one, or might need an update based on how the business has changed over the year.

Employment law experiences frequent changes and updates—in the past year alone, the Minimum Wage review resulted in an increase for the National Minimum Wage and minimum award wages. An update to the Sex Discrimination Act also emphasised the positive duty employers have to take to ensure their employees’ safety.

Here are some questions to ask:

• Does your current suite of policies take into account the changes in employment law that have happened in the previous months?
• Are these updated in your Employee Handbook?
• Are you on top of any changes in employment law over the past year?

We encourage you to audit these policies and inform your employees if there are any changes to them.

As well, there are the most crucial policies to review:

• Leave Policy: this includes the parental leave policy, as parental leave has increased from 20 to 22 weeks.
• Workplace health and safety policy
• Remote or hybrid work policy

Conduct Performance Reviews and Clarify Goals

It’s all too easy for performance goals and reviews to get lost in the shuffle of everything else a business has going on during the year. However, at Now Actually, we believe in the value of performance reviews. They shouldn’t be meetings done for the sake of ticking an item off a list—these reviews should provide management with a clear view of how employees are performing and how they can enhance performance and employee engagement.

Performance reviews are also a chance for employees to communicate with management about their workload, and how well they’re meeting their goals.

Here are some things to think about when it comes to performance reviews:

• How often are they being conducted?
• How do employees track their KPIs?
• How do you measure your employees’ KPIs and how they’re met?

We recommend scheduling performance reviews for employees as a way to assess their performance in the past year, as well as an opportunity for goal-setting in the new one.

Consider Training and Development Programs

The new financial year is also a good chance to look at what training and development programs your business currently has for employees.

After conducting performance reviews, management should have a clear view of employees’ skill gaps and areas for improvement. This paves the way towards discussing which programs could be implemented to enhance employee performance.

When considering training and development, you can ask:

• Are there any new opportunities for staff that would be useful to add value to the business?
• What events, conferences and/or workshops are available?
• What kind of budget needs to be set aside for each team member?

Review Compensation and Benefits

As we’ve mentioned, employment law is ever-evolving. Reviewing salary structures and benefits for employees is non-negotiable when it comes to looking at your HR functions in the new financial year.

Here are some things to think about:

• Ensure your salary structures are competitive, compliant with the law, and align with industry standards
• Consider conducting a market analysis to stay updated, or consulting with a third party regarding this
• Do your benefits packages still meet the needs and expectations of your employees?

This is also a good time to evaluate your benefits offerings and make necessary adjustments.

Taking the time to audit, review, and update the items in this checklist can be a huge commitment, especially if you don’t have a dedicated HR department in your business. However, the points in this checklist are crucial for businesses who want to be compliant with the law and ensure they’re doing right by their people.

Addressing these key areas can drive meaningful improvements that benefit both your business and your people. Need advice or guidance around any of the points in this checklist? Contact our team, and we’d be happy to help!