An Employer’s Year-End Guide
The end of the year signals a great time to review your current practices to keep morale – and retention – up in 2020. When doing a year-end check-up, consider these five key elements.
1. Employee Salaries: Every year, companies set their salary budgets. And according to recent data from Aon’s 2019-2020 Salary Increase Survey, salaries are projected to increase 3.2% in 2020. Since the Work Institute reports it can cost 33% of a worker’s annual salary to hire a replacement, now is a good time to think about raises for next year and benchmark your pay against the industry to make sure you’re competitive in today’s labor market.
2. Workers’ Performance: The annual review may be a thing of the past but that doesn’t mean feedback is out entirely. Instead, the trend is to provide more frequent input on performance so employees can recognize opportunities for improvement in near real time. These conversations don’t have to be formal sit-downs but can be quick check-ins to discuss progress so be sure to set aside time soon to converse with workers.
3. The Employee Handbook: Employment laws and regulations are constantly evolving so it’s critical to stay on top of changes every year to keep your workplace running optimally. The new year marks a good time for an annual refresh of your handbook’s contents. As you prepare to unveil an updated guide for 2020, check out our list of must-haves to include.
4. Fringe Benefits: With a tight labor market, companies are increasingly turning to fringe benefits to boost their compensation packages with added perks. To find out what appeals to workers, run a quick survey or solicit informal input on what they want – and need – to be sure your 2020 offerings will boost satisfaction with your package. To find out popular benefits among employers, check out the annual SHRM Employee Benefits survey.
5. Bonuses: In many companies, an annual bonus is the norm. If you plan to issue bonuses to employees before this year ends, make sure your system of rewards is fair among peer groups. That means whether you choose to issue a flat dollar amount, a figure based on an individual’s salary, or a goal- or performance-based bonus, recognize employees in the same way. For more tips on awarding bonuses, watch our video.
Make the most of a year-end audit to start off 2020 right. For more assistance, contact Complete Payroll Solutions at 888.909.6596.