Are You Ready?
The perfect HR checklist for the new Financial Year
The new Financial Year is here, and it's the best time to evaluate and ensure your business is ready to tackle the upcoming challenges. One of the most critical components of any business is Human Resources (HR), and as such, this blog will focus on 7 HR fundamentals that you should address as soon as possible.
1. Review Minimum Wage Compliance
The Fair Work Commission has increased the Federal Minimum Wage by 5.75% or $23.23 hour. This rate applies from the first full pay period starting on or after the 1st of July.
As an employer, you need to ensure you're paying paying eligible employees the correct minimum wage. If you're not compliant, you risk facing underpayment claims and potential Fair Work Ombudsman penalties.
2. Prepare for Superannuation increases
From July 1st, Superannuation rates increased to 11%. You must ensure that you are providing your workforce with the correct compensation package prescribed under the employment contract. In reviewing your contracts of employment, ensure that your salary structures inclusive of superannuation align with the new rates. If unsure, consult with HR experts, as there are serious penalties for non-compliance.
3. Update Employee Handbooks
With any financial year comes changes to employment laws and regulations. When updating your business policies to reflect these changes, it is crucial to review and update your employee handbook, employee policies and procedures, ensuring they align with the new updates.
4. Evaluate your training and development programs
Investing in the growth and development of your employees is integral to the success of your business. At the beginning of each financial year, it's critical to plan your training and development program for your employees, enabling them to grow in their roles, acquire new skills and, in turn, add value to the business.
5. Revise recruitment and retention strategies
Skill shortages are now the new norm, and as such, revamping your recruitment and retention strategies is essential to the survival of your business. Reimagining the recruitment process and offering attractive employee retention strategies can attract, develop, and retain top talent within your organisation.
6. Plan your employee reviews
Start the New Financial Year by planning employee reviews, aligning employee goals with company objectives. Employee review sessions can provide excellent insight into employee performance and identify areas of improvement.
7. Concisely communicate important changes
Make a clear and concise communication plan to articulate any policy or process changes to your employees, ensuring they have a solid understanding of the underlying reasons and business outcomes. Consistent and transparent communication with your employees engenders trust in your company culture, reduces confusion and increases employee engagement retention.
Taking the time to evaluate and enhance your HR fundamentals is critical in setting up your new financial year for success. Consider the above suggestions to ensure that your company is compliant, effective, streamlined, and retains high-quality talent.
A final suggestion? We recommend using an HR platform to automate admin tasks and streamline HR operations. Investing in cloud-based software that handles core HR processes such as onboarding and documentation storage, employee information, skill tracking, and more, allows your HR team to focus on strategic HR activities while everything else runs smoothly.