?? Preparing for the Transition: HR’s Checklist for 2024 to 2025 in Malaysia

As we approach the end of 2024, HR professionals in Malaysia face a crucial period of transition. The shift to a new year brings opportunities for reflection and improvement—but also unique challenges that require meticulous planning. Here’s a comprehensive guide to help HR teams navigate this change seamlessly. ??

1?? Payroll: Ensuring Accuracy and Compliance

Why it matters: Payroll is a cornerstone of employee trust and statutory compliance.

? Finalize and reconcile December payroll.

? Ensure accurate reporting of PCB (Potongan Cukai Berjadual) and all statutory contributions (EPF, SOCSO, EIS).

? Prepare EA forms for employees to file taxes promptly in 2025.

Pro Tip: Leverage automation in your HRMS to minimize errors and ensure compliance. ??

2?? Tax Forms: Ready for Submission ??

Why it matters: Early preparation avoids unnecessary penalties.

? Prepare and validate Form E for employer declarations.

? Update employee details for smooth tax filing, especially for new hires or those who exited in 2024.

Tech Tip: Invest in a solution that integrates directly with LHDN for real-time submission.

3?? Leave Balances and Carry-Over Policies ??

Why it matters: Employees value clarity in their leave entitlements.

? Audit 2024 leave balances and communicate carry-over policies clearly.

? Update your HRMS to reflect accurate leave balances on January 1st, 2025.

HR Advice: Encourage employees to take unused leave for better work-life balance and mental well-being.

4?? Expense Carry-Over: Clean the Slate ??

Why it matters: Unsettled expenses can create accounting headaches.

? Set deadlines for 2024 expense claims submission.

? Close off unclaimed reimbursements and roll over eligible amounts if your policy permits.

5?? Performance Management: Wrapping Up the Cycle ??

Why it matters: Year-end reviews align goals and improve employee engagement.

? Complete performance appraisals and finalize 2024 bonus/merit reviews.

? Begin goal-setting conversations for 2025 to align with company strategy.

Leadership Tip: Provide constructive feedback and use this opportunity to inspire your team for the year ahead.

6?? Budgets for 2025: Planning Ahead ??

Why it matters: Strategic planning ensures resource availability.

? Finalize HR budgets, including recruitment, training, and welfare.

? Align budgets with organisational priorities, such as digital transformation and employee engagement initiatives.

7?? ESG and Sustainability Initiatives ??

Why it matters: Employees and stakeholders are increasingly ESG-conscious.

? Incorporate sustainable practices into HR policies—e.g., hybrid work to reduce carbon footprint.

? Promote employee wellness programs as part of the "S" in ESG.

Insight: Aligning HR with ESG goals enhances employer branding and long-term sustainability.

8?? Employee Engagement and Communication ???

Why it matters: Transparent communication builds trust.

? Share a clear year-end communication plan with employees.

? Celebrate 2024 achievements and share 2025 aspirations in a town hall or virtual meeting. Pro Tip: Use digital tools like intranets or HRMS portals to keep employees informed.

9?? System Health Check: Your HRMS Readiness ??

Why it matters: Your HRMS is your operational backbone.

? Perform a comprehensive health check on your HRMS, including workflows, compliance updates, and reporting functionalities.

? Test all processes—payroll, leave, claims, and performance modules—for January readiness.

Tech Upgrade: Consider a cloud-based HRMS if you’re still on legacy systems to enhance scalability and security.

10?? A Fresh Start: Employee Well-Being ??

Why it matters: A happy employee is a productive employee.

? Kick off 2025 with wellness initiatives, such as team-building activities or workshops.

? Offer support for professional development and learning opportunities.

Closing Thoughts: Moving Ahead with Confidence ??

The transition from 2024 to 2025 is not just about closing books; it’s an opportunity to start anew with better systems, stronger teams, and a sustainable vision. With proper planning and the right HRMS, you can turn this challenging period into a strategic advantage for your organization.

Let’s welcome 2025 with efficiency, clarity, and purpose. ?? What’s your top priority as you prepare for 2025? Share your thoughts in the comments below! ?

#HRMS #Payroll #MalaysiaHR #Sustainability #ESG #FutureOfWork