Once every 11-or-so years, the stars align for a 27th biweekly pay period.

However, this extra pay period can create budgeting, compliance, and administrative headaches if not handled properly.

At Namely, we understand how complex payroll management can be, which is why our all-in-one HCM platform is designed to simplify payroll processes, compliance, and reporting for growing companies.

Worried about that extra pay period this year? Follow these five steps to stay ahead and keep your employees paid and compliance teams happy.

How can Companies Handle an Extra Pay Period?

There are two different payroll strategies for tackling Pay Period #27: pro-rata adjustments or a pay-as-usual approach.

Understanding Pro-Rata Adjustments

With this approach, employees keep their annual salary, but their biweekly pay is recalculated to spread that amount evenly across all 27 pay periods.

How It Works:

• Divide the employee’s annual salary by 27 instead of 26.
• Each paycheck is slightly smaller, but total annual compensation stays the same.

Example:
A salary of $52,000 normally results in $2,000 per paycheck ($52,000 ÷ 26).
In a 27‑paycheck year, the biweekly amount becomes $1,925.93 ($52,000 ÷ 27).

What Employers Should Know:
This option keeps payroll budgets predictable, and that’s a big plus! Just be prepared to communicate the change early and clearly so employees understand why their checks look different.

Understanding “Pay As Usual” (Employee‑Preferred)

This option keeps things simple: employees continue receiving the same biweekly amount they’re used to, even in a 27‑paycheck year.

How It Works:

• The biweekly pay rate stays the same as a 26‑pay period year.
• Employees are effectively paid two extra weeks of salary over the year.

Example:
A $52,000 employee keeps receiving $2,000 biweekly, totaling $54,000 by year‑end.

What Employers Should Know:
Employees love the consistency (and the extra “surprise” bump at the end of the year). Employers, however, should anticipate the additional payroll expense and how it may affect annual budgeting or cash flow.

5 Steps for the 27 Pay Periods

Once you’ve determined pro-rata vs “pay as usual” for your company, these five steps are crucial to continuing down the 27 pay period path.

1. Understand How and Why 27 Pay Periods Occur (and Tell the Others!)

Every 11 years or so, the calendar aligns in such a way that a biweekly payroll schedule results in 27 pay periods instead of 26. This happens because there are 52 weeks plus one extra day (or two in leap years), which can slip in an extra paycheck within the fiscal year.

Awareness is the first step. Knowing which years have 27 pay periods lets you prepare your budgeting and payroll schedules accordingly.

And don’t forget to clue in administration and/or executives who might otherwise be out of the loop!

2. Communicate Early and Transparently with Employees

Once you’ve explained it to those figures signing off on paychecks, it’s time to tell your employees about which payment option you’ll apply in 2026!

An extra paycheck may bring questions or confusion from your employees. Will the extra paycheck affect benefits, tax withholdings, or deductions?

Clear, proactive communication can ease employee concerns and even become an engagement opportunity. Use your HR platform’s communication tools, like Namely’s integrated messaging and mobile app, to keep your workforce informed about the payroll calendar changes and what they mean for them.

3. Adjust Your Payroll Budget Accurately

That extra pay period means a company-wide increase in gross payroll expenses for the year.

Adjust your budgeting to reflect this change so your finance team or payroll does not encounter surprises. Payroll software integrated with real-time reporting and forecasting — like Namely’s Reporting module, can help you visualize the financial impact and make informed strategic decisions.

4. Review Payroll Tax and Compliance Impact

An additional pay period affects payroll tax calculations, benefit deductions, and other statutory withholdings.

Ensure your payroll system accounts for the 27th pay period according to IRS guidance and local regulations.

Namely’s payroll automation simplifies tax handling and compliance across multiple states and jurisdictions, shielding you from costly errors.

5. Tap into Technology to Simplify the Extra Pay Period

Manual payroll adjustments add extra work and risk for your HR team.

With an all-in-one payroll and HR platform like Namely, you can automate payroll processing including unusual payroll years.

Namely’s managed payroll and compliance services relieve administrative burden, allowing your HR and finance teams to focus on strategic initiatives instead of manual calculations.

Final Thoughts

The 27 pay periods in 2026 don’t have to be a headache for your payroll team or employees. By understanding the how and why, communicating clearly, adjusting budgets, ensuring compliance, and leveraging technology like Namely’s integrated HCM platform, your company can navigate this payroll quirk confidently.

Ready to simplify your payroll with an intuitive, all-in-one platform? Request a demo today and see how Namely can help your business thrive in 2026 and beyond.

Namely — More Than Payroll. A Better Way to Work.

2026 Payroll: Managing 27 Pay Periods

Prepare for 2026’s 27th pay period. Learn how to manage pro-rata adjustments or "pay as usual" strategies to keep your budget and employees on track.

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With evolving state and local ordinances, inflation-driven adjustments, and ongoing federal policy discussions, employers must continually monitor and implement changes to remain in compliance with labor laws.

That’s why the Namely team has compiled these updated figures for U.S. minimum wage rates by state to help employers stay informed.

At the federal level, the Fair Labor Standards Act (FLSA) continues to require nonexempt employees in both private and public sectors to be paid the higher of the federal, state, or local minimum wage.

As of this writing, the federal minimum wage remains $7.25 per hour, unchanged since July 2009, despite advocacy for increases from both parties.

Which States Have Minimum Wages Higher Than the Federal Rate in 2026?

The following states (among others) have minimum wages exceeding the federal $7.25 rate in 2026. Many of these states also implement annual adjustments:

Alaska, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Maine, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, Nevada, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington If any of your employees work in states or cities where the minimum wage exceeds the federal rate, you’re required to pay the higher applicable rate. Employers operating across multiple jurisdictions should

If any of your employees work in states or cities where the minimum wage exceeds the federal rate, you’re required to pay the higher applicable rate. Employers operating across multiple jurisdictions should ensure payroll systems can track and apply the correct rates consistently.

2026 Federal & State Minimum Wage Guide

Namely appreciates how hard it is to keep up with changing laws. Download our Federal & State Minimum Wage Guide to ensure you are staying compliant.

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You’re not alone. It’s one of the most common concerns we hear from HR professionals.

As we look toward 2026, the employment landscape continues to evolve at a rapid pace. New OSHA and AI regulations are taking shape, employee expectations are shifting, and HR leaders need practical strategies to build workplaces where people truly thrive.

In this blog, we’re unpacking some of the biggest compliance trends to keep an eye on in 2026.

1. Navigating New Employment Laws for HR Compliance 2026

Let’s talk about the challenge that keeps many HR professionals up at night: employment compliance. It’s complex, it’s constantly evolving, and getting it right is essential.

Each year brings new federal, state, and local employment laws, and 2026 is shaping up to be particularly dynamic.

From wage transparency requirements to expanded paid leave policies, staying informed protects both your organization and your team members.

If your organization operates across multiple states, the complexity amplifies. While regulations vary by location, several key areas are seeing widespread changes:

• Lactation laws and paid lactation breaks: in states like Illinois, employers must compensate nursing mothers for the time taken to express breast milk. Employers also cannot require nursing moms to use paid leave during breaks. It’s independent of other breaks.
• Paid sick leave and family leave policies: Paid sick leave policies will continue to expand. States like Colorado are adding extra paid family and medical leave for parents with a child in hospital, for example.
• Pay transparency requirements: California will lead the country in some of the biggest pay transparency regulations next year. Employers with 100 or more employees will be required to submit detailed annual pay data reports to the Civil Rights Department. This change, along with similar changes happening across Europe, could impact more states as 2026 goes along.

Without dedicated resources to monitor these developments, important updates can easily slip through the cracks.

Elite 8 Compliance Webinar OnDemand

Join Christine V. Walters, J.D., MAS, SHRM-SCP, SPHR, for an informative discussion on EEOC/DEI, AI, Cannabis, Misclassification, Pay Transparency & More!

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2. Meeting Rising Expectations Around Flexibility and Benefits

Compliance in employee benefits and benefits administration is another pillar to watch in 2026.

And the need for compliant employee healthcare is clear. In 2023 alone, the Employee Benefits Security Administration (EBSA) recovered nearly $1.5 billion in employee-owed benefits from employers who weren’t meeting their obligations.

But compliance around healthcare benefits (ACA, HIPAA, and COBRA) is just the foundation.

Today’s workplace brings together four generations, each with unique needs and expectations. Flexibility, mental health support, and personalized benefits aren’t perks anymore. They’re essential elements of a competitive employee experience.

Here’s the encouraging news: creating compliant benefits packages doesn’t require unlimited budgets.

With thoughtful planning and the right tools, you can provide a better benefits experience.

3. How to Build Inclusive Workplaces While Navigating DEI Compliance

Diverse, equitable, and inclusive (DEI) workplaces are what employees, customers, and communities increasingly expect from today’s employers.

The challenge for HR? Navigating the evolving landscape of Equal Employment Opportunity Commission (EEOC) requirements while public sentiment and policy directions continue to shift.

In 2026, expect continued emphasis on workplace culture and accountability. The key is staying connected to both regulatory requirements and the genuine needs of your team and community.

Smaller HR teams have a unique advantage here. You’re agile, close to your people, and you can build intentional, inclusive cultures from the ground up.

That’s not just beneficial for HR compliance. Inclusion can be a powerful business advantage.

4. Staying Current with OSHA Safety Standards

OSHA is implementing some of its most significant updates in years.

These changes deserve your attention, both for avoiding penalties and protecting your team and strengthening your organization’s reputation.

One major development is the Heat Illness Prevention Standard, which will require employers to provide shade, hydration, and acclimatization programs for workers exposed to extreme temperatures.

This applies across industries, from construction to office environments.

OSHA is also strengthening injury and illness recordkeeping requirements, with certain employers now required to electronically submit detailed incident data. This increases transparency and the likelihood of focused inspections.

For HR teams, this means taking a proactive approach: updating safety programs, ensuring thorough team training, and maintaining comprehensive, up-to-date compliance documentation.

5. Embracing AI and Automation Responsibly

Artificial intelligence and automation are no longer futuristic. They’re here.

From agentic AI options like chatbots to scheduling tools, small businesses are adopting tech to streamline operations. But with new tools come new responsibilities, including data privacy, employee training, and ethical considerations.

Two massive AI compliance discussions HR leaders should keep in mind are:

• How your company uses AI in hiring, and
• AI data safety for customers and employees.

AI’s use in HR (and more specifically in hiring) has been debated across multiple states for a few years, including California, Utah, and Colorado.

However, it’s Illinois’s aggressive stance on AI usage that people across the country are watching.

Starting in 2026, Illinois employers have to expressly tell job candidates how the employers are using AI throughout the hiring process.

This legislation exists to help offset inherent biases that can percolate through AI tools and, thus, expose businesses to EEOC lawsuits.

Data safety within AI tools is another huge component of AI compliance in 2026.

GDPR, HIPAA, and other governance regulations require companies to comply with best practices to keep data protected.  However, third-party AI tools can complicate existing data governance and even expose sensitive data.

Businesses should have clear documentation on what information AI tools in use have, as well as a map or AI framework showing where data goes.

6. Strengthening Your Crisis and Risk Management Plans

Recent years have taught us that crises don’t announce themselves. They just happen.

The best way to counteract a cybersecurity incident, a natural disaster, or an unexpected operational challenge? Having a clearly defined and well-communicated risk management plan in place.

Regulatory bodies and industry standards increasingly expect organizations to demonstrate genuine preparedness for operational disruptions, including:

• Data Protection & Cybersecurity Compliance: Stricter privacy laws require clear protocols for breach response, data recovery, and customer notification.
• Workplace Safety Measures: Crisis planning must include employee safety during emergencies, ensuring compliance with occupational health and safety standards.
• Business Continuity Documentation: Many states and industries now mandate documented continuity plans to minimize downtime and financial impact.
• Communication Protocols: Compliance frameworks often require clear internal and external communication strategies to maintain trust and prevent misinformation during crises.

HR plays a foundational role in emphasizing the need for crisis response plans and distributing information about what to do when a crisis strikes.

Let 2026 be the year you transform risk management from a potential HR weakness into a competitive strength.

Let’s Get Ahead of 2026 Together

Keeping up with the ever-changing compliance landscape shouldn’t feel like a solo journey. We understand the unique challenges HR teams face, and we’re here to support you every step of the way.

Download our free HR calendar packed full of key compliance dates and ideas for celebrating employees.

Ready for more comprehensive support? Namely offers the technology and managed services to keep you compliant. From a central system of record and digital document storage to an electronic Employee Handbook and real-time alerts, we help you stay current on constantly changing regulations to avoid potential fines and penalties.

With Namely by your side, you can focus on what you do best: building an organization and workplace culture that truly makes a difference. And don’t forget to register for our first webinar of 2026!

Elite 8 Compliance Webinar OnDemand

Join Christine V. Walters, J.D., MAS, SHRM-SCP, SPHR, for an informative discussion on EEOC/DEI, AI, Cannabis, Misclassification, Pay Transparency & More!

Watch OnDemand

In fact, 41% of employees describe open enrollment as “extremely confusing,” and nearly half find the decision-making process “very stressful.” For HR professionals like you, these feelings aren’t unfamiliar.

Along with helping employees navigate their options, your team may have faced its own stress including managing multiple software systems , compliance hurdles, and an influx of questions requiring immediate responses.

While challenges from your 2025 open enrollment season may still feel fresh, there’s an opportunity to shift your focus.

The lessons from this year can act as a springboard, helping you make 2026 smoother, more efficient, and, most importantly, less stressful for everyone involved.

With a structured review process and small, actionable changes, you can turn this year’s friction into a foundation for future success.

Step 1: Conduct an Immediate Debrief (The “While It’s Fresh” Phase)

The first step in creating a better open enrollment process is to reflect on what happened this year, before the details fade. Start by gathering both quantitative data and qualitative feedback.

When it comes to metrics, look at your enrollment completion rates.

Did employees struggle to complete the process?

Were there noticeable patterns in plan migration or areas where individuals seemed to get stuck?

Additionally, review the volume of help desk tickets submitted and track the most common issues employees faced. These numbers can tell a story about your pain points and help identify where the process might have broken down.

At the same time, put real employee feedback at the center of your evaluation. Consider deploying a short, five-question survey to your employees and, if possible, their dependents.

Keep the questions simple, like “What do you wish you had known earlier?” or “How user-friendly was the enrollment system?”

This can help you understand the human side of the enrollment experience,where confusion or stress stemmed from, and what could have made a difference for your workforce.

Lastly, don’t forget to loop in your internal stakeholders, like payroll and finance. Schedule a debrief meeting to discuss behind-the-scenes challenges.

Were there specific manual data corrections that caused major headaches? If yes, these “nightmare” scenarios can highlight areas where your systems failed or lacked the automation needed to reduce errors and save time.

Step 2: Audit Your Communication Strategy

Once you’ve analyzed the operational hiccups, it’s time to reflect on how you engaged with employees.

Even the best open enrollment system falls flat without an effective communication strategy, so ask yourself: Did employees really understand the benefits options available to them?

Start by digging into your engagement data to find problem areas or “dead zones.” Review email open rates and attendance records for any information sessions offered. If these numbers were disappointingly low, it’s possible that the communication channels or timing didn’t resonate with your audience.

Next, take an honest look at the content of your messages.

Were your emails long and overly detailed? If so, they might have been overwhelming to employees.

Aim to simplify. Break long updates into a series of shorter, punchier messages that feel more digestible. Ditch unnecessary jargon and provide plain-English descriptions for every benefits option. Including a glossary of unfamiliar terms can also empower employees to feel more confident and informed.

Lastly, consider diversifying your communication efforts by embracing a multi-channel approach for 2026. Beyond emails, explore options like short videos, live webinars, or even mobile push notifications. Interactive content, such as quizzes or clickable decision trees, can go a long way in keeping employees engaged while making complex information easier to digest.

Step 3: Tackle Technology and Compliance Friction

No one wants to repeat technical frustrations from the previous year, so addressing system performance and compliance issues early can save time and stress down the road.

If employees experienced glitches, slowdowns, or outright system crashes during open in enrollment 2025, prioritize extensive testing for 2026. Your testing process should mimic real-life scenarios (including complex employee cases or instances with multiple dependents) to uncover potential bugs before your team and employees encounter them.

Additionally, take a closer look at your integration process. Manual data entry errors can be one of the most frustrating aspects of enrollment for HR teams, especially when they affect payroll or other internal operations.

Use this time to explore tools that integrate directly with payroll and automate data transfers. These solutions can not only reduce errors but also free up time for your team to focus on higher-value tasks.

From a compliance perspective, make sure you’re fully prepared to meet new and ongoing requirements. For instance, the Affordable Care Act (ACA) affordability threshold will rise to 9.96% in 2026. Likewise, SECURE 2.0 will introduce mandatory Roth catch-up contributions for high earners. Adding these changes to your 2026 checklist now ensures that nothing falls through the cracks later.

Step 4: Personalize the Employee Experience

Finally, one of the best ways to improve open enrollment is to make it feel less generic and more personal for employees.

Introducing guided tools can help here. For example, consider implementing features that offer tailored plan recommendations based on employees’ specific life stages. A tool that shows “people like me” scenarios can make decision-making much more approachable.

If employees reported feeling disconnected or found the process too impersonal in 2025, think about adding more opportunities for human connection in 2026.

Virtual breakout rooms or one-on-one sessions with benefits counselors can provide employees with individualized support, helping them make confident choices.

Don’t forget that open enrollment is not just a once-a-year event. Keeping employees engaged year-round doesn’t have to be complicated. It could mean hosting monthly webinars on financial wellness or sharing quick, actionable tips related to health benefits.

By reinforcing key concepts throughout the year, you’ll help employees feel more prepared when enrollment season arrives.

Setting the Clock for 2026

Building a seamless, stress‑free open enrollment season for 2026 starts well before enrollment opens. By mapping out a backward timeline and planning three to four months ahead, you can shift open enrollment from a routine compliance task to a powerful strategic moment.

When employees feel informed and confident in their benefits decisions, trust deepens, and your organization gains a healthier, more supported workforce.

Take the challenges, the wins, and everything in between from 2025 and use it to create a smoother, more personalized experience this year.

With data‑driven insights, thoughtful preparation, and the right technology, you can deliver an open enrollment that truly stands out.

Ready to elevate your approach? Connect with Namely’s HR experts today and see how our all‑in‑one HCM platform can transform your next open enrollment. Request your personalized demo now.

Wrapping up 2025 means careful review, compliance checks, and strategic planning.

To help you conquer the final weeks of the year, we’re highlighting key year-end tasks and ways to prepare your HR functions for a successful 2026.

Why HR Teams Need a Year-End Wrap-Up

Year-end can be a hectic time for HR. You’re juggling closing out employee records, ensuring compliance with upcoming regulations, preparing payroll, and much more.  

Using a structured checklist can help ensure nothing is overlooked. The Namely Year-End HR Checklist is designed specifically for HR professionals to track critical tasks like:

• Reviewing and updating employee information
• Finalizing performance reviews and bonuses
• Verifying compliance with changing labor laws
• Preparing documentation for audits and reporting

Download your copy today and use it as a guide to double-check nothing is missed.

Practical Steps to Close Out 2025

Employee Data Audit

Make sure all employee files are complete and up to date. This includes contact information, benefits enrollment, and employment status changes during the year such as promotions or terminations.

Benefits and Compliance Review

Double-check that benefits plans and contributions align with current regulations for tax year 2025. Updating your knowledge of any new state or federal legislation that took effect during the year is essential.

Performance and Compensation Finalization

Close out performance evaluations and confirm that any merit increases or bonuses are correctly documented and scheduled.

Year-End Payroll Processing

Reconcile all payroll transactions to avoid errors before issuing year-end tax documents such as W-2s or 1099s. You can make payroll processing easier by downloading our free Namely Year-End Payroll Checklist.

How HR Teams Can Prepare for 2026

As we move into 2026, HR leaders will face new challenges and exciting opportunities stemming from emerging trends.

Expect to see a continued focus on employee well-being (especially mental and financial health), a need for benefit management that employees can trust, and a give-and-take when it comes to how your employees feel about using AI tools — especially for HR evaluations.

These topics and more have compliance considerations and can impact your company in wildly different ways.

Looking ahead, preparation (from tools like our HR checklist) is key. Here are three ways to stay organized:

Use Data to Guide Your Planning

Data is your best friend when planning for the year ahead!

Review insights from 2025–like turnover rates, engagement scores, and performance trends– to set realistic HR goals for next year.

Use these data-heavy insights from 2025 to set HR goals, update policies, and prepare employee communications for the upcoming year.

Continuous Learning and Policy Updates

The end of the year is prime time to reflect on what worked and what didn’t.

Use year-end reflections to identify gaps in training, update employee handbooks, and prepare for any legislative changes effective in 2026.

Staying proactive ensures compliance while building trust with employees. It shows your team that you’re committed to transparency and growth.

Leverage the Namely HR Calendar

The journey toward better organization in 2026 starts with knowing what’s ahead!

Incorporate important dates and deadlines into your planning by consulting the Namely HR Calendar. This calendar helps you keep track of compliance deadlines, open enrollment periods, and other critical milestones in 2026.

By using these dates, you’ll avoid last-minute scrambles and keep your team aligned. And with Namely’s HR checklist, you’ll be able to focus on creating a great employee experience.

Final Thoughts

Year-end is a strategic opportunity to refine HR processes, uphold compliance, and renew your focus on employee engagement and development. With the right resources, you can wrap up 2025 with confidence and start 2026 on a solid foundation. Our HR checklist can be an easy win for any team.

Stay One Step Ahead Throughout the Year

Namely understands the challenges HR professionals and business leaders manage 24/7/365. Our solutions and services are designed with you in mind.

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But let’s be honest, organizing these events can sometimes feel like walking a tightrope. How much fun is “too much” fun? How can we celebrate the holidays with our colleagues without creating an uncomfortable scenario?

At Namely, we believe the secret sauce lies in thoughtful planning and crystal-clear communication.

The result? A work holiday party that feels inclusive, enjoyable, aligned with your company’s values, and most importantly, stress free!

Here are 5 tips for planning a work holiday party that leaves your team energized, engaged, safe, and smiling.

1. Set Clear Work Holiday Party Expectations Right from the Start

A successful work party begins before the event itself. Share the essentials early: when and where, the theme, dress code, and (most importantly) behavioral expectations. Send a reminder close to the day to remind everyone it’s time to connect, celebrate, and yes, stay professional.

If you’re offering alcoholic beverages, make sure to clearly lay out the guidelines:

• Define drink limits
• Specify whether alcohol is company-provided
• Clarify if outside beverages are off-limits

Clear communication keeps things safe and fun for everyone.

2. Make Work Events Inclusive and Welcoming to Everyone

Christmas, Hannukah, Festivus – no two holiday celebrations are alike! Your work holiday party should reflect that diversity. Aim for themes that spotlight togetherness and camaraderie instead of focusing on traditional rituals.

Offer a variety of food, beverages, and activities that appeal to all preferences. When your team feels seen and included, attendance and engagement soar.

Need planning help? We’ve got a checklist for that, covering venue tips, menu planning and everything in between

3. Encourage Management to Set the Tone

Leadership presence matters. Managers who show up, interact respectfully, and keep things upbeat without losing sight of professionalism send a clear message: it’s okay to relax and have fun.

Encourage leaders to be hosts who foster connection and uphold the values your company stands for. That commitment brings a warm, positive vibe that lasts well beyond the party, even reinforcing an employee’s “why” at work.

4. Prioritize Safety and Comfort within the Workplace (Even at a Party)

Your care for employees extends beyond party time. Arrange transportation options or share details on safe travel alternatives to make sure everyone gets home from your work holiday party without stress.

When your team knows you’ve thought through their safety, it builds trust and shows you value their well-being.

5. Create Fun That Builds Bridges

Choose activities that invite genuine interaction instead of competitive or potentially divisive games. Think team-building exercises, moments recognizing great work, or interactive fun that reflects your company spirit.

The goal? Forge connections and memories that reinforce culture, not awkward regrets.

Let Namely Help You Make Every Season Bright

At Namely, we make managing HR from your work holiday party to day-to-day processes simple and scalable. Our platform equips HR teams to communicate clearly, stay compliant, and foster collaboration that drives results.

What do our customers say about Namely?

“Namely has transformed how we handle employee events and communications. Clear guidelines and streamlined processes mean fewer surprises and more meaningful celebrations.” – Taylor M., HR Manager

Let Namely help you build workplace traditions that reflect your values and bring your team closer together every step of the way.

HR Guide to Holiday Party Success Made Simple

Ensure your HR holiday party runs smoothly and risk-free. Discover proven strategies to boost engagement, reduce liability, and celebrate success with confidence.

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Between evaluating benefit plans and ensuring every team member understands their options, there’s genuine pressure to get everything right. And when a majority of employees struggle to care, the pressure on HR teams and leaders can quickly compound.

But here’s the thing: with thoughtful preparation and a people-first approach, open enrollment transforms from a stressful obligation into a meaningful opportunity to demonstrate how much the company values its people.

Let’s walk through how to approach open enrollment season with confidence.

Start Earlier Than You Think

What’s the most common challenge we see? Teams waiting too long to get started. We recommend starting your planning at least 60–90 days before your open enrollment period. This enables you to collaborate with your benefits partners, thoughtfully assess your current offerings, and explore what’s possible for the year ahead. When you start early, you create space for better decisions, clearer communication, and genuine choice.

Review Current Plans and Utilization

Taking time to understand how your people experienced their benefits over the past year will provide insight to make educated decisions for the upcoming year. Which offerings resonated with your team? Where did you see high engagement, and where might there be unmet needs or gaps in coverage?

This review is your opportunity to:

• Celebrate what’s working well and identify areas for improvement

• Discover new options that better serve your unique workforce

• Find smart ways to optimize costs without compromising quality

• Ensure your benefits strategy truly reflects your people’s needs and your company’s value

This is where having the right benefits administration software and data insights becomes invaluable for making informed, people-centered decisions.

Stay Current with Compliance Requirements

Open enrollment isn’t just about offering great benefits—it’s about doing so responsibly and in compliance with regulations.

Make sure you’re prepared with:

• Current ACA regulations and affordability requirements

• All required employee notices, including SBCs and COBRA information

• Key deadlines for renewals and necessary filings

• Any state-specific requirements that impact your benefit offerings

If your team has grown or changed this year, take time to understand how those changes might affect your compliance responsibilities.

Craft Clear, Helpful Employee Communications

The way you communicate about benefits can make all the difference in how your people experience open enrollment. Start developing materials early—emails, guides, comparison tools, and timelines—so your people have plenty of time to digest information and ask thoughtful questions.

Focus on:

• Using clear, everyday language that everyone can understand

• Clearly explaining what’s new or different this year

• Providing easy-to-use plan comparison tools

• Creating multiple ways for people to get support and answers

Consider hosting live information sessions where employees can ask questions and get real-time support—these conversations often reveal insights that improve the entire process.

Set Up Systems for Success

Even the best benefits and clearest communication need strong administrative support to create a smooth experience for everyone involved.

Take time now to:

• Ensure your HR systems and enrollment platforms are ready and tested

• Verify employee eligibility and classifications

• Clearly define who’s responsible for what across your team

• Build in buffer time well before final deadlines

Having the right HCM can significantly streamline your administrative workload while ensuring accuracy and compliance throughout the process.

Keep Your People at the Center

At its heart, open enrollment is about supporting the humans who make your organization successful. Benefits are deeply personal, and how you approach this process reflects your company’s commitment to your people’s wellbeing.

Make space to:

• Gather feedback before and after enrollment to continuously improve

• Transparently explain the reasoning behind any changes

• Highlight how your benefits investment demonstrates your commitment to your team

• Provide personalized support whenever possible

When your people feel informed, supported, and valued throughout this process, they’re more likely to make confident decisions and feel genuinely cared for by your organization.

Moving Forward with Confidence

Open enrollment doesn’t have to be a source of stress. With early planning, clear communication, and a genuine focus on your people’s needs, you can create an experience that strengthens trust and demonstrates your organization’s values in action.

Remember, this process is ultimately about the people who choose to build their careers with you. When you approach open enrollment as an opportunity to serve and support your team, everyone benefits.

For employers, the decisions you make around benefits offerings, communications, and resources directly shape how supported and valued your people feel.

For employees, benefits selections impact their mental, physical, and financial well-being—and often their families’ well-being too. Yet too often, the enrollment process gets treated as just another box to check—rushed through, defaulting to last year’s selections, and missing valuable opportunities to make better choices.

The data tells a concerning story: nearly 70% of employees spend 30 minutes or less reviewing their benefits during open enrollment, and most simply stick with their previous selections. To put this in perspective, the average American spends almost 5 times longer on social media than they do reviewing benefit options during the entire enrollment period.

Here’s what we know: when employees take the time to really engage with open enrollment, they make better decisions. And when that happens, job satisfaction, retention, and engagement all improve. As HR professionals, you have the power to help. Here’s how:

Prioritize Education and Clarity When Discussing Employee Benefits Options

One of the biggest reasons employees rush through enrollment is a lack of understanding. Clear, accessible education makes all the difference. Consider these approaches:

• Host webinars or interactive workshops where employees can get answers to their questions
• Create comparison charts and easy-to-understand guides that break down complex information
• Send personalized communications that highlight changes or key benefits most relevant to each person

The more informed and confident your employees feel, the more time they’ll invest in the open enrollment process.

Embrace User-Friendly Technology

Technology can transform open enrollment from a confusing chore into a streamlined, empowering experience. When you invest in intuitive, mobile-friendly platforms, you give your people the flexibility to explore their benefits options on their own time—at home with family or during a quiet moment at work.

Look for enrollment platforms that include:

• Plan tools that provide side-by-side comparisons of coverage, costs, and provider networks
• Decision-support features like cost estimators, recommendation engines, or guidance based on individual lifestyle and health needs
• Integration with payroll and HR systems to reduce errors and ensure seamless updates

Technology is great, but ensuring the process is engaging and educational can help to maximize results. If the platform is too basic or lacks context, employees may rush through without truly understanding their choices.

Consider adding interactive content like:

• Short explainer videos embedded in the platform
• Helpful tips or FAQs that appear during the selection process
• Personalized dashboards that highlight changes from the previous year or flag underutilized benefits

User-friendly technology should do more than digitize the process. It should empower your employees to make informed, confident decisions about their benefits. When done right, it becomes the foundation of a positive open enrollment experience.

It’s also important to track engagement metrics—like time spent on the platform, resources accessed, or completion rates—to identify where your people might need more support. These insights can guide future improvements and help you proactively reach out to employees who may be struggling.

Support Younger Workers Through Employee Benefits Selection

Younger employees (Gen Z) are often the most likely to rush through enrollment. For many, it’s their first real experience navigating benefits, and it can feel overwhelming. A little extra support—gentle reminders, dedicated workshops, or one-on-one guidance—can help them understand the long-term value of their options and ensure they don’t miss critical coverage that could benefit them for years to come.

Provide Accessible Support for Any Open Enrollment Questions

Not every employee feels confident about benefits, and that’s perfectly okay. A dedicated support system can help reduce anxiety and confusion during enrollment. You might consider:

• Offering one-on-one consultations with HR or benefits advisors
• Setting up a help desk, hotline, or comprehensive FAQ resource for quick questions
• Encouraging peer-to-peer discussions among employees who are familiar with the process

Accessible, personalized support empowers your people to slow down and make confident, informed selections that truly work for their lives.

Create a Culture of Engagement

When employees feel valued and connected to your organization, they’re naturally more invested in processes like open enrollment. You can build this culture by:

• Keeping communication about employee benefits open and ongoing throughout the year
• Actively seeking feedback on the enrollment experience and making meaningful improvements
• Recognizing employees who engage thoughtfully in benefits programs

Every effort you make contributes to a workplace culture where benefits are seen as part of the bigger picture of employee well-being and support.

Make Employee Benefits Open Enrollment Successful for Everyone

Encouraging employees to invest more time in open enrollment isn’t about checking a compliance box—it’s about creating a culture of informed decision-making, genuine engagement, and care for your people. The payoff is significant: employees who understand and appreciate their benefits are more satisfied, more loyal, and more likely to feel truly supported in both their professional and personal lives.

At Namely, we believe that when you simplify and humanize the open enrollment process, you create opportunities for deeper employee engagement and satisfaction. Our platform is designed to make benefits enrollment intuitive and empowering for everyone on your team. Ready to transform your open enrollment experience? Let’s talk about how we can help you create a benefits process that truly works for your people.

Namely understands the pressures HR and business leaders face and is committed to helping you navigate a workforce where change is constant. In this guide, we’ll unpack:

• Federal Changes: What the One Big Beautiful Bill Act Impact Means for HR
• State-Level Trends: What HR Teams Need to Watch
• How Technology Can Make Compliance Easier
• What HR Teams Should Do to Get Ahead of OBBBA’s Impact

Federal Changes: What the One Big Beautiful Bill Act Impact Means for HR

The OBBBA is extensive—spanning 1,000+ pages and covering everything from immigration enforcement to tax reform and healthcare policy. For HR professionals and business owners, the bill introduces a series of changes that will directly affect payroll operations, benefits administration, and workforce compliance.

Here are the key provisions you should be preparing for:

Tax-Free Tips and Overtime

Under the OBBBA, employees earning less than $150,000 annually (or $300,000 for couples) can now deduct up to $25,000 in tips and $12,500 in overtime premium pay from their federal taxable income. This provision is designed to offer tax relief to workers in tipped and hourly roles, particularly in industries like hospitality, retail, and healthcare. Time & attendance and payroll are front and center with this tax-free tip and overtime adjustment.

Impact on HR and Employers:
HR teams will need to ensure that payroll systems can accurately track and report these earnings separately. Employers must also prepare for new W-2 formatting requirements, which will require tips and overtime to be listed as distinct line items. For small businesses, this means additional administrative oversight and potential updates to payroll software and employee communication protocols.

HSA Expansion and Telehealth

Beginning in 2026, Health Savings Account (HSA) funds can be used for direct primary care services (up to $150/month for individuals and $300/month for families) and for ACA bronze or catastrophic health plans. Additionally, pre-deductible telehealth coverage is now permanently allowed for HSA-compatible plans.

Impact on HR and Employers:
HR teams will need to work closely with benefits providers to update plan documents and ensure employees understand how to take advantage of these expanded options. While this presents an opportunity to offer more flexible, cost-effective healthcare solutions, it also requires clear communication and thoughtful plan design to avoid confusion or noncompliance.

Dependent Care FSA Limit Increase

The annual contribution limit for Dependent Care Flexible Spending Accounts (FSA) will rise from $5,000 to $7,500 starting in 2026. This change is intended to help working families better manage the rising costs of childcare and eldercare.

Impact on HR and Employers:
HR teams must update benefits systems to reflect the new limits and ensure compliance with nondiscrimination testing rules. This change can enhance recruitment and retention by offering more meaningful support to working parents—but it also requires careful planning to ensure equitable access and understanding across the workforce.

ICE Enforcement and I-9 Compliance

The OBBBA significantly increases funding for immigration enforcement, including plans to hire over 10,000 new agents and expand workplace audits. Employers should expect heightened scrutiny of I-9 documentation and employment eligibility verification.

Impact on HR and Employers:
HR teams must ensure that I-9 forms are completed accurately and stored securely, with processes in place for regular audits and updates. Companies that lack dedicated compliance staff are especially vulnerable to fines and penalties if documentation is incomplete or outdated. This makes proactive compliance and training essential.

State-Level Trends: What HR Teams Need to Watch

While the One Big Beautiful Bill Act (OBBBA) is a federal law, its ripple effects are being felt across states—many of which are introducing or updating their own employment regulations in response to broader national shifts.

For HR teams and business owners, these state-level changes add another layer of complexity to workforce management, especially for organizations operating in multiple jurisdictions.

Here are the key trends to monitor:

Earned Sick Leave Expansion

At least nine jurisdictions—including Philadelphia, Chicago, and Alaska—have introduced or updated earned sick leave laws. These changes vary widely in terms of accrual rates, eligibility, and usage rules.

Impact on HR and Employers:
HR teams must stay on top of local ordinances and ensure that leave policies are compliant in every location where employees work. This includes updating employee handbooks, adjusting accrual tracking systems, and training managers on new requirements.

For businesses with lean HR teams, the administrative burden of managing multiple leave policies can be significant—and noncompliance can lead to costly penalties.

Pay Transparency Laws

States such as Illinois, Minnesota, New Jersey, Vermont, and Massachusetts have enacted or proposed laws requiring employers to include salary ranges in job postings. Some laws also mandate internal pay audits and employee access to compensation data.

Impact on HR and Employers:
These laws are reshaping how organizations approach compensation strategy and talent acquisition. HR teams must ensure that job descriptions are updated and that salary bands are clearly defined and consistently applied.

For many businesses, this may require a cultural shift toward greater transparency and a review of pay equity practices—both of which can be resource-intensive but are increasingly expected by job seekers.

Minimum Wage Updates

More than 80 jurisdictions are expected to update their minimum wage rates by the end of the year. These changes may be tied to inflation, cost-of-living adjustments, or new legislative mandates.

Impact on HR and Employers:
HR and payroll teams must monitor wage changes closely and adjust pay rates accordingly to remain compliant. For businesses operating in multiple states or cities, this can create budgeting challenges and require frequent payroll updates. Failing to comply with minimum wage laws can result in back pay obligations, fines, and reputational damage.

E-Verify+ and Employment Verification

The federal government is piloting E-Verify+, a new system that integrates Form I-9 into a digital verification platform. While not yet mandatory, the system is expected to become a standard soon.

Impact on HR and Employers:
HR teams should begin preparing for a shift toward digital employment verification. This includes reviewing current I-9 processes, ensuring documentation is complete and accessible, and staying informed about rollout timelines.

Transitioning to a new system may require training and investment in updated tools, but early adoption can reduce risk and streamline onboarding.

How Technology Makes Compliance Easier

As outlined above, the OBBBA requires significant attention and potential adjustment to your current processes associated with payroll, time tracking, benefits, and compliance. The good news is there are solutions that can help—from HR and payroll systems to all-in-one Human Capital Management (HCM) platforms like Namely, technology can make navigating regulatory changes much simpler.

Here’s how:

• Automation: Reduce manual work with automated payroll, benefits, and compliance workflows.
• Configurability: Tailor policies and settings to meet federal, state, and local requirements.
• Visibility: Access real-time reporting and dashboards to monitor compliance status.
• Employee Experience: Empower employees with self-service tools and clear communication.
• Scalability: Adapt quickly as your workforce grows or regulations change.

What HR Teams Should Do to Get Ahead of OBBBA’s Impact

To stay ahead of the One Big Beautiful Bill Act and other regulatory laws, HR teams should take a proactive approach.

Here’s how to prepare:

1. Review Payroll and Benefits Configurations for 2026 Readiness

• Audit your payroll setup to ensure it can track and report tips and overtime separately, as required by new W-2 formatting rules.
• Update contribution limits for HSAs and Dependent Care FSAs in your benefits system.
• Ensure your payroll engine is configured to support new tax deductions and credits.

2. Update Job Posting Templates to Meet New Pay Transparency Laws

• Review job descriptions and compensation disclosures to comply with new state-level transparency mandates.
• Work with hiring managers to standardize salary bands and ensure consistency across postings.
• Use recruiting tools to embed compliant templates and streamline approvals.

3. Audit Sick Leave Policies for Local Compliance

• Check your leave policies against updated regulations in jurisdictions like Philadelphia, Chicago, and Alaska.
• Configure your time and attendance module to reflect local accrual rules and eligibility criteria.
• Communicate changes clearly to employees.

4. Monitor Federal and State Guidance on Employment Verification

• Stay informed about the rollout of E-Verify+ and potential mandates for digital I-9 integration.
• Use compliance tracking tools to ensure your documentation is complete and audit-ready.
• Prepare to transition to digital verification workflows as regulations evolve.

5. Educate Employees on New Savings Opportunities

• Launch internal campaigns to explain how the new HSA and FSA rules benefit employees.
• Make FAQs, webinars, and enrollment guides accessible to employees wherever it is convenient for them, including mobile devices.
• Encourage employees to review and update their elections during open enrollment.

6. Conduct a Compliance Health Check

• Schedule a review of your HR policies, payroll settings, and benefits offerings with your broker, attorney or a compliance expert. [Check out Namely’s Managed Services.].
• Use reporting tools within your current systems to identify areas of risk or non-compliance.
• Create a roadmap for implementing necessary changes before the 2026 deadlines.

Legislation like the OBBBA and state-level reforms are more than compliance updates—they’re opportunities to improve employee experience, streamline operations, and build trust. Namely is here to help with technology and services that enable you to turn complexity into clarity and stay focused on what matters most: your people.

They’re still showing up, still performing… but beneath the surface, they’re nearing a breaking point. And because they’re not vocal about their struggles, their decline often goes unnoticed until it’s too late.

Quiet Cracking vs. Quiet Quitting: What’s the Difference?

Both quiet quitting and quiet cracking have made headlines beyond the HR space. It’s vital that employers and HR leaders understand the distinct difference between the two.

Quiet cracking is harder to detect—and potentially more damaging—because it hides behind a façade of productivity.

How to Spot Quiet Cracking

Recognizing quiet cracking requires more than tracking performance metrics. Look for:

• Behavioral shifts: Withdrawal, irritability, or sudden silence
• Loss of initiative: Quiet cracking leaves people frazzled. This often leads to fewer ideas, and less collaboration with teammates.
• Absenteeism: More sick days or time-off requests. There is also a possibility that those struggling with quiet cracking won’t feel comfortable submitting PTO out of fear of missing work or feelings of instability/judgment from taking time away.
• Signs of burnout: Excessive stressors can eventually compound into quiet cracking. Seventy-six (76%) of employees experience burnout on the job at least sometimes, and 28% say they are burned out “very often” or “always” at work. Burnout includes: Fatigue, anxiety, or emotional exhaustion. Download our Employee Burnout Prevention Handbook for tips on combating this growing challenge.

As the ones most likely to detect quiet cracking first, frontline managers need to be trained on what to look for and how to address this situation when it presents itself. By requiring specific training that helps managers learn the signs of quiet cracking and provides steps leaders can take to reduce burnout, boost psychological safety and protect performance, HR can arm managers with the knowledge and tools they need.

How Quiet Cracking Impacts Employers

The cost of quiet cracking is real:

• Lost productivity – Lost productivity and turnover are among the most expensive consequences of burnout, which can lead to quiet cracking. A study in the American Journal of Preventive Medicine estimates that burnout costs American companies between $4,000 and $21,000 per employee annually due to lost productivity and turnover. For a company with 1,000 employees, that could mean losses of approximately $5 million annually.
• Team disruption – Employee burnout can cost employers 0.2 to 2.9 times the average cost of health insurance, and 3.3 to 17.1 times the cost of training per employee. (APA)
• Higher turnover
• Damaged employer brand

In turbulent times, businesses need to be proactive—not reactive.

Getting Ahead of Quiet Cracking

HR software like Namely’s Human Capital Management (HCM) platform can help HR teams and managers potentially identify warning signs so you can support employees before they reach a breaking point. And while HR can’t alleviate all external stressors employees might face, equipping employees with tools that make it easier for them to manage their professional life can help reduce unnecessary stress.

1. Performance Management That Builds Positivity

Namely’s performance tools enable continuous feedback, goal tracking, and recognition. This helps:

• Reinforce positive behaviors
• Surface early signs of disengagement
• Foster a culture of transparency and support

2. Data-Driven Feedback Channels

Namely’s analytics and survey tools help HR teams:

• Identify burnout risks
• Enable anonymous feedback
• Act quickly on employee sentiment

With real-time insights, you can turn data into meaningful action.

3. Anytime, Anywhere Self-Service

With Namely’s mobile app, employees can quickly and easily:

• Request time off or shift changes
• View benefit coverage
• Engage with other employees

When employees feel supported in taking care of themselves, some weight is lifted off their shoulders.

Your Partner for a People-First Culture

Quiet cracking is a silent signal that something deeper is wrong, and it is a growing concern companies need to be aware of and prepared to address through training, empathy and wellness programs. Namely is here to support HR teams with challenges like quiet cracking, offering tools to help you build a workplace where employees feel safe, supported, and empowered.

Multi-State Compliance: Not Just in Kansas Anymore

With the rise of remote work, companies now have employees scattered across various states, each with their own set of compliance requirements. While discussing this topic, Janell emphasized the importance of understanding the legal landscape in every state where your employees reside. This includes being aware of diverse regulations, such as unique requirements in states like Alabama (paid jury duty leave) and Nebraska (payout of unused vacation time). Non-compliance in this area can lead to significant penalties, including wage and hour claims and misclassification lawsuits. To stay informed, it’s crucial to utilize resources like SHRM, legal blogs, and compliance software.

Pay Transparency: The New Frontier

Equal pay has long been a cornerstone of fair employment practices, but recent pay transparency laws are taking it a step further. These laws, enacted in states like Colorado, New York, and California, require employers to disclose pay ranges in job postings, aiming to eliminate wage disparities. It’s essential for companies to conduct internal pay equity audits to ensure compliance and prevent potential discrimination claims. Another area Janell called attention to is the increased awareness employees may have regarding pay as transparency becomes more common, reinforcing the need for employers to maintain consistent and fair pay practices.

Paid Family and Medical Leave: A Growing Trend in HR Compliance

Paid family and medical leave (PFML) laws are becoming more common, offering employees financial support during significant life events. However, these laws vary widely from state to state in terms of contribution requirements, eligibility rules, and benefit structures. As an employer, you must navigate the interplay between state PFML laws and federal FMLA requirements. To ensure compliance, it is crucial to regularly review and update leave policies to align with both state and federal regulations.

Independent Contractors: A Complex Classification

Classifying workers as independent contractors can offer flexibility but comes with its own set of challenges. Misclassification can lead to significant legal and financial repercussions. And to complicate matters, as Janell pointed out, various agencies, including the IRS and Department of Labor, have different criteria for classifying independent contractors. Industries such as healthcare, construction, and professional services that may rely more heavily on gig workers are particularly susceptible to misclassification issues. As such, it is vital to conduct thorough audits and ensure that classification practices meet all relevant legal standards.

AI in Employment Practices: HR Compliance’s New Frontier

Artificial Intelligence (AI) is revolutionizing HR practices, from recruitment to performance management. However, its use comes with potential risks, particularly around bias and discrimination. According to Janell, states like New York and Illinois are leading the way in regulating AI use in employment decisions, and the anticipation is more will follow. While AI offers the opportunity to gain efficiency and increase, it’s important to be aware of potential pitfalls. For example, AI algorithms can inadvertently perpetuate biases, leading to discrimination claims, and the increasing discussion around copyright and intellectual property ownership. To mitigate your risk but still leverage the benefits of AI, it’s important to ensure transparency, accountability, and human oversight when using AI tools in HR processes.

Final Thoughts: There’s No Place like Compliance

Navigating the yellow brick road of HR compliance requires vigilance, adaptability, and a proactive approach. By staying informed and implementing best practices, you can ensure that your organization remains compliant and fosters a fair and equitable workplace. Stay ahead of the compliance curve by subscribing to SHRM’s newsletters and attending future webinars. For comprehensive HR solutions, contact us to learn how our platform can help you manage payroll, benefits, and compliance seamlessly.

Navigating HR Compliance

Comprehensive breakdown of HR compliance issues, including multi-state regulations, pay transparency, paid leave, contractor classification, and AI in employment practices.

Watch the Webinar

Creating a Cutting-Edge Culture Inside Your Company

Even if a resurgence in U.S. manufacturing is driven by some nostalgia, the reality is considerably more futuristic.

The fabrication of large durable goods is increasingly roboticized. And precision machine tools are crafted on finely calibrated and ultra-specialized devices that require years of schooling to master. All of these are controlled through computer interfaces.

Just as factory equipment has become more computerized and is constantly adapting to market requirements, HR systems have seen similar advances. This evolution has contributed to record productivity in the U.S. and brought the nature of manufacturing into what has been (prematurely) called “The Post-Industrial Age.”

Even HR software has evolved into Human Capital Management (HCM) software. Employees are no longer considered a “resource” like steel or oil, but a critical asset contributing to the company’s capitalization.

By managing personnel through an HCM platform, manufacturers can attract and retain the skilled professionals they need, empower them to achieve maximum productivity, and strategically connect the shop floor to the corner office to help even leadership do a better job.

Because a full-featured HCM integrates every aspect of employee engagement, we’ll just touch on a few features that were rarely seen in yesterday’s factories.

Welcome Aboard

The first concern of many manufacturers is finding and hiring the skilled professionals they need. In May, 2025, the unemployment rate in the manufacturing sector was 3.6%, considerably lower than the 4.2% rate for the overall economy. The overall economy also showed there were only 96.9 unemployed workers for every 100 job openings in the U.S. In other words, the competition for qualified workers is significant.

That makes recruitment all the more critical for manufacturers looking to grow their business or fill skills gaps. This is one strength of an Applicant Tracking System (ATS) as part of a HCM platform. Hiring managers and HR can collaborate on job postings which can then be fed directly into the most popular job boards. When candidates respond, the system will accept their resumes and automatically parse them for easy evaluation.

Once hired, the system welcomes them and helps automate the documentation and onboarding so the entire process can move quickly and smoothly. This frees HR and management to focus on the individual, personalizing their welcome, and getting them into the mix. The sooner a new worker feels like a contributor, the happier they are.

The entire process feels both sleek and warm, and makes the company feel like a place the best people will want to work. Exactly what new candidates entering the workplace want to see and feel.  

Clocking In is Out: A Novelty for HR in Manufacturing

Workforce Management (WFM) might sound like another name for HCM. But it is, in fact, just one component of a full-featured system. WFM includes time-tracking which can look nothing like punch-clocks.

Proximity sensors or badged entry can integrate access controls with time-tracking. This ensures better security and record-keeping accuracy. Time-tracking data also flows (or should!) into the payroll package, eliminating friction and stress from payroll runs. Better WFM modules include a mobile app for field personnel like sales, installers, or service to check in and out.

As for scheduling, a total integration with employee profiles, pay rates, and PTO schedules, helps shift schedules to practically build themselves. The system ensures the right skill sets are on duty when needed while avoiding unnecessary overtime. Even the scheduling of PTO is a few clicks for requests and approvals.

This frees management to only deal with exceptions, which are limited. The smart, digital dynamic feels truly modern, giving every organization the glow of a cutting-edge company. This is the new reality of factory work.  

Assembly Circles, Not Lines

Quality Assurance (QA) should apply as much to people as it does to products. Performance reviews are where that happens in today’s workplaces. But the criteria need to be more than widgets-per-minute output, Quality matters even more than quantity, and the opportunities for personal development through training are greater than ever.

A complete HCM enables 360° performance reviews that bring in coworkers and other stakeholders along with managers to give employees the most nuanced perspective possible on their workstyle. And it’s not just a one-way process. Today’s performance review process can be a dialogue with employees empowered to help find their way to their full potential.

This underscores the fact that employees are assets to modern companies, not simply a resource. This fosters dedication to the company and mitigates employee turnover. The records of these exchanges also document labor law compliance and the character of the workplace. In the event such records are needed, they will put the company in the best possible light.

Shop Floors Without Walls

This employee-centric approach is especially critical in today’s modern manufacturing landscape. Around three-quarters of manufacturing firms in the United States have fewer than 20 employees, and 93% have fewer than 100. This generates a community dynamic that the right HCM software can promote and amplify.

Employee self-service is one such feature. By giving employees a company portal to manage their own accounts, they feel a greater sense of belonging and ownership. This also increases the efficiency of reviewing pay stubs and tax records, benefits election and administration, PTO requests, and more. The more employees can do for themselves, the fewer clerical tasks fall on your administrators.

The comprehensive integration of employee data also gives executives the information they need to make better strategic decisions. Leadership is always going to be removed from the nitty-gritty of even the most tight-knit company culture. Patterns in the reporting can help them decide where to focus their attention. And the hard data behind those toplines will let them be more surgical in their planning.

In a way, this lets companies give their employees as much detailed attention as they give to the products they make and the customers they serve. This is the true nature of modern manufacturing. It is also the kind of company where today’s talent and skilled professionals want to work.  

Namely HCM: The New Way to Make Things

These are just some of the capabilities a HCM platform brings to the workplace. Besides elevating the atmosphere on the shop floor, a connected workforce also lifts the company’s back office and administration.

The Namely HCM platform is designed specifically for small and mid-sized businesses. With the guidance of its parent company, Vensure Employer Solutions – one of the largest privately-held HR technology and services companies in the world – Namely brings a unique understanding of real-world usage to the product.