Q4 is here and many business owners are reviewing budgets, setting goals, and preparing for the year ahead, but there’s one important year-end task that shouldn’t be overlooked: reviewing your HR practices.

An annual HR audit can help identify outdated policies, administrative gaps, and potential compliance concerns before they become bigger problems.

1. Review Your Employee Handbook: Does your handbook reflect current company policies and applicable employment laws? Pay particular attention to leave policies, workplace conduct, remote work expectations, and employee reporting procedures.

2. Check Employee Classifications: Review whether workers are appropriately classified as employees or independent contractors. For employees, confirm that exempt and nonexempt classifications align with applicable wage and hour requirements.

3. Review Personnel Records: Make sure employee records are organized, securely maintained, and retained according to applicable requirements. Check that required employment documentation is complete and that sensitive information is handled appropriately.

4. Evaluate Benefits Administration: Review enrollment procedures, employee eligibility, required notices, and plan documentation. Employers should also verify which federal and state reporting obligations apply to their organization.

5. Assess Hiring and Onboarding Practices: Review job descriptions, hiring procedures, onboarding materials, and required employment forms. Consistent processes can help improve the employee experience while reducing administrative errors.

6. Prepare for Upcoming Changes: Employment regulations, benefit limits, and reporting requirements can change from year to year. Before entering 2027, review applicable updates and determine whether policies, payroll practices, or employee communications need adjustment.

At The Grigg Group, we understand that small business owners have enough on their plates. Let us help make sure your ducks are in a row and keeping things compliant going into 2027.