As we step into 2025, now is a great time for small business owners to take a fresh look at their HR practices. Making thoughtful updates now can help create a workplace that’s more engaged, productive, and compliant. Below are some practical tips and strategies to boost engagement and ensure compliance for your business's success in the year ahead.
Prioritize your employee’s well-being. Studies have shown that happy and healthy employees are more engaged, productive, and less likely to leave. But how do you know if in fact your employes are engaged, productive, and less likely to leave? Ask them! Conduct an anonymous employee survey to understand their current pain points. Think about offering flexible work arrangements to better support work-life balance if you see a negative trend in their feedback. Look to introduce or expand wellness initiatives, such as mental health days, gym memberships, or mindfulness workshops.
Enhance Communication and Feedback. Open communication builds trust, helps employees feel appreciated, and encourages greater investment in their work, as they feel more informed and involved. Employees need to and deserve to know the “why”. Try to schedule regular one-on-one meetings between managers and their team members – start these meetings now early in the year to keep the momentum going. Implement a structured performance review process with clear goals and constructive feedback. And don’t forget to take advantage of tools like Slack or Microsoft Teams for easy communication.
Invest in Professional Development. Employees who grow with your company are more likely to stay and contribute to its success. They like you – they really do! Think about setting aside budget dollars for training, certifications, or attending industry events. Develop cross-training opportunities to build versatile skill sets within your team while encouraging your more tenured employees to pour into your newer workforce sharing their knowledge.
Update HR Policies and Practices. Staying compliant protects your business from legal risks and creates a fair workplace. If you did not complete a year-end review, take the time now to review and update your employee handbook. Conduct a compliance audit to ensure payroll, benefits, and workplace policies meet legal standards. Look for ways to stay informed on new regulations, such as wage transparency or remote work guidelines, through attorney newsletters, your local business networks, government websites (DOL or EEOC) or industry publications.
Embrace DEI&B. A diverse workplace encourages innovation and helps connect with a wider range of clients and customers. Consider offering DEI (Diversity, Equity, and Inclusion) training for both managers and employees, and take a closer look at your hiring practices to identify ways to reduce bias and attract diverse talent. Celebrating cultural milestones and promoting inclusivity through events and awareness campaigns can further strengthen your efforts.
Leverage HR Technology. Automation is the way of the future, and streamlining your HR processes will save you time and improve accuracy. Invest in an HR management system for easier payroll, onboarding, and compliance tracking. These platforms are filled with date – so use it! Use data analytics to track employee performance and engagement trends. Automate repetitive tasks like time tracking or benefits enrollment.
And finally, don't forget the importance of Fostering a Strong Company Culture. A positive culture not only attracts top talent but also helps align your team with your mission. Take the time to clearly define and share your company values. It's also a good opportunity to reflect with your leadership team on whether those values are being lived out day-to-day. Look to also recognize and celebrate employees who embody those values—everyone wants to feel appreciated! Consider organizing team-building activities and events to strengthen connections.
By focusing on these HR resolutions, your small business can build a stronger, more resilient team in 2025. Remember, even small changes can have a big impact over time. Start with one or two initiatives, track your progress, and adjust as needed to ensure you're meeting your team's needs.
Here’s to a successful and meaningful year ahead!
