Every business has a few projects that end up on next year’s to-do list. The website refresh that didn’t happen. The system upgrade that’s been postponed. The project that never quite got off the ground.
Some things can wait. But when it comes to your people, there are a few issues worth dealing with sooner rather than later.
As the end of 2026 approaches, many small business owners are already thinking about the year ahead. There are budgets to finalise, business goals to set and plans to put in place for growth.
But while you’re looking ahead, it’s worth taking stock of what’s been happening within your team over the past 12 months.
Perhaps there’s a performance concern you’ve been putting off addressing. An employee who’s taken on more responsibilities than their role originally required. Or a workplace frustration that keeps resurfacing but never quite gets resolved.
These issues are easy to push aside when you’re busy running a business, particularly when they don’t appear urgent. The trouble is, they rarely disappear on their own.
Before you turn your attention to 2027, here are five HR matters worth reviewing.
1. Performance concerns you’ve been putting off
Having difficult conversations with employees is something few business owners look forward to. It’s particularly challenging in small businesses, where working relationships are often close and you may have known your employees for years.
Perhaps someone hasn’t been meeting expectations, their performance has gradually declined or their behaviour is affecting other team members.
It can be tempting to give them a little more time to improve or hope that the situation will resolve itself.
Unfortunately, avoiding these conversations can make matters worse. Employees may not realise there’s a problem if nobody has clearly communicated their concerns. Meanwhile, other team members may become frustrated if they feel they’re picking up the slack.
Addressing performance concerns doesn’t have to mean launching straight into a formal process. In many cases, a constructive conversation about expectations, challenges and support can be a useful starting point.
The important thing is to address concerns promptly and fairly, rather than allowing them to continue unchecked.
If there are performance issues that have been sitting on your to-do list, now is a good time to work out how you’ll address them.
2. Employment contracts and policies that haven’t kept pace
Small businesses can change considerably over the course of a year. Employees move into new roles, responsibilities evolve and working arrangements become more flexible.
But employment documentation doesn’t always keep up with those changes.
You may have employees whose job descriptions no longer reflect what they do, workplace policies that haven’t been reviewed for some time or informal arrangements that have never been properly documented.
There may also have been changes to employment laws, award rates or other requirements that affect your business.
While reviewing paperwork might not be the most exciting way to finish the year, it’s an important part of managing your responsibilities as an employer.
Take some time to check that employment contracts, job descriptions and workplace policies remain accurate and appropriate. It’s also worth reviewing employee classifications, pay rates and entitlements to make sure you’re meeting your obligations.
You don’t necessarily need to overhaul every document. The aim is to identify anything that’s outdated, unclear or no longer reflects how your business operates.
A little attention now can help prevent confusion, disputes and potentially costly mistakes down the track.
3. Employees who have been carrying too much
The end of the year can be an especially demanding period for small businesses. There are deadlines to meet, customers to look after and often fewer people available as employees begin taking leave.
For some teams, however, the pressure hasn’t been limited to the past few weeks.
Perhaps you’ve had vacancies that haven’t been filled, an increase in business without additional staffing or employees who’ve gradually taken on more work as the year progressed.
Often, it’s your most reliable employees who absorb the extra responsibilities. They’re the people who get things done, rarely complain and can always be counted on when something needs attention.
But just because someone is managing their workload doesn’t necessarily mean that workload is sustainable.
Over time, excessive demands can lead to fatigue, frustration and disengagement. Employees who have consistently gone above and beyond may begin questioning whether they can continue at the same pace.
This is a good opportunity to check in with your team about how they’re managing.
Are workloads reasonable? Are responsibilities fairly distributed? Do employees have the resources and support they need? Have temporary arrangements quietly become permanent expectations?
Employers also have responsibilities to identify and manage psychosocial hazards, which can include excessive job demands and inadequate support.
Addressing these issues may involve reviewing priorities, redistributing tasks or reconsidering staffing needs for the coming year.
It’s also worth remembering that your employees’ experience of the year may be quite different from your own. Creating opportunities for honest feedback can help you identify pressures that aren’t immediately obvious.
4. Workplace tensions that haven’t been resolved
Not every workplace problem results in a formal complaint.
Sometimes it’s an ongoing disagreement between colleagues, frustration about how decisions are made or a team member who feels they’re being treated differently from others.
These concerns can sit beneath the surface for months, particularly if employees are reluctant to speak up or managers aren’t sure how to respond.
In a small business, where people often work closely together, unresolved tensions can have a noticeable impact on the wider team.
Communication becomes strained, collaboration suffers and employees may begin losing confidence that their concerns will be taken seriously.
It’s worth reflecting on whether there have been recurring frustrations or conflicts throughout the year that haven’t been properly addressed.
Have employees raised the same concerns more than once? Are there working relationships that have become difficult? Have changes been promised but not followed through?
Not every disagreement requires a formal investigation. However, concerns should be taken seriously and handled in a fair and appropriate way. More serious matters, including allegations of bullying, harassment or discrimination, may require prompt action and a more formal response.
If you’re unsure how to approach a sensitive workplace issue, seeking professional HR advice can help you understand your obligations and determine the most appropriate next steps.
5. People practices that no longer suit your business
What worked when you had five employees may not work quite as well when you have 15 or 25.
In the early stages of a business, managing employees is often relatively informal. New starters learn by working alongside others, performance feedback happens through everyday conversations and everyone has a reasonable understanding of their responsibilities.
As your business grows, these arrangements can become harder to maintain.
You may find that new employees aren’t receiving consistent onboarding, managers have different approaches to handling employee matters or people aren’t entirely clear about what’s expected of them.
Employee development can also slip down the priority list when everyone is focused on getting through the day-to-day workload.
These aren’t necessarily signs of poor management. They’re often part of the natural growing pains of running a business.
But they are worth addressing.
Before heading into 2027, consider whether your current approach to onboarding, performance management, employee communication and development is still meeting the needs of your business.
Introducing a little more structure can make a significant difference, both for your employees and for the managers responsible for supporting them.
Start 2027 with a clear people plan
With everything that needs to happen before the Christmas break, the last thing most small business owners need is another lengthy to-do list.
The good news is that you don’t have to resolve every HR issue before the year ends.
Instead, set aside some time to consider what has worked well from a people perspective during 2026 and what could be improved.
Think about the employee issues that have continued to resurface, where your team has experienced the greatest pressure and whether your current processes are helping or hindering the way people work.
It’s also worth asking your employees for their perspective. They may be able to highlight challenges or opportunities that aren’t immediately visible to you.
From there, identify two or three priorities that would make the greatest difference to your business and your employees in 2027.
Some matters, particularly those involving employee safety or legal obligations, may need immediate attention. Others can form part of a practical HR plan for the new year.
The important thing is to have a clear understanding of what needs attention and a plan to address it.
Our team provides flexible, practical HR advice and support to help small businesses manage their people responsibilities with confidence. Whether you need guidance on an existing issue or want to improve your HR practices for the year ahead, we’re here to help.Reach out for a free consultation here.
Frequently asked questions
What HR matters should small businesses review at the end of the year?
An end-of-year HR review should consider employment contracts, pay rates and entitlements, workplace policies, employee performance, outstanding workplace concerns and staffing needs. It’s also a good opportunity to review employee workloads, wellbeing and leave arrangements, including any requirements relating to Christmas shutdown periods.
How often should a small business review its HR policies and procedures?
Reviewing HR policies at least annually is a useful starting point. However, policies and procedures should also be updated whenever relevant employment laws change or your business introduces new working arrangements, responsibilities or processes. Regular reviews help ensure your policies remain practical, accurate and compliant.
Should employers address performance issues before the Christmas break?
Performance concerns should generally be addressed promptly rather than delayed simply because the end of the year is approaching. However, the appropriate approach will depend on the circumstances. Employers should ensure employees understand the concerns, have a fair opportunity to respond and receive appropriate support. Seeking HR advice can be helpful when dealing with more complex or sensitive situations.
How can outsourced HR help small businesses prepare for the new year?
Outsourced HR professionals can help review existing employment practices, identify potential compliance gaps, provide advice on outstanding employee matters and develop practical HR priorities. This gives small business owners access to specialist knowledge and support without needing to employ a full-time HR manager.