A new year has a funny way of shining a spotlight on everything that was pushed aside when things got busy. For many business owners, HR tends to live in that “we’ll get to it” bucket. Until something breaks. Or worse, until someone asks for documentation you cannot find.

The good news? A little upfront HR work can save a lot of time, money, and stress as the year unfolds. Here are the key HR items worth tackling early to support growth and keep 2026 running smoothly.

Get Compliance Cleaned Up First

Before setting big goals, make sure the foundation is solid.

This is the unglamorous work that protects your business. Wage and hour classifications, exempt versus non-exempt status, I-9s, required postings, leave policies, and state specific rules are not things you want to scramble over mid-year.

Quick wins:

• Review employee classifications and pay practices
• Confirm required policies are in place for all states you operate in
• Check recordkeeping and documentation consistency

Update the Employee Handbook

If your handbook has not been touched in the last year, it is already outdated.

Policies evolve. Laws change. Your business likely changed too. New benefits, remote or hybrid work, updated attendance expectations, or clearer performance standards all deserve a refresh.

A strong handbook:

• Sets expectations clearly
• Protects the business legally
• Reduces day to day confusion for managers and employees

Plan Recruiting Before You Need It

Hiring reactively is expensive and exhausting.

The start of the year is the perfect time to step back and ask:

• What roles will we likely need this year?
• Where have we struggled to hire in the past?
• What support do managers actually need during hiring?

Locking in recruiting partnerships early gives you access to talent when you need it most. It also allows time to refine job descriptions, interview processes, and compensation strategy instead of rushing through decisions later.

Tighten Up Performance and Feedback Practices

Strong businesses do not wait until there is a problem to talk about performance.

Clear expectations, regular check ins, and documented feedback help employees grow and help leaders manage with confidence. Even simple structure makes a big difference.

Consider:

• Standardizing one on one check ins
• Aligning goals to business priorities
• Training managers on how to give effective feedback

This is one of the most overlooked growth tools and one of the most impactful.

Build HR Systems That Scale

What worked when you had ten employees may not work at fifty or one hundred.

Early in the year is the best time to evaluate:

• HRIS and payroll systems
• Onboarding and offboarding processes
• How information flows between leadership, managers, and HR

Scalable systems reduce manual work, limit errors, and free leaders up to focus on strategy instead of admin tasks.

Put a Real HR Strategy Behind the Business Goals

HR works best when it supports where the business is going, not just where it has been.

Whether growth means hiring, expanding into new states, improving retention, or developing leaders, HR should be part of the planning conversation. When HR is proactive instead of reactive, businesses move faster and with fewer roadblocks.

Wrapping It All Up

The start of the year is not about fixing everything overnight. It is about making intentional choices that prevent avoidable headaches later.

At CultivaHR, we help businesses of all sizes get organized, stay compliant, and build people practices that support real growth. From HR audits and handbook updates to recruiting partnerships and ongoing consulting, we focus on practical solutions that make running a business easier.

A little HR work now goes a long way all year long.