Use it or lose it. As the calendar year winds down, this is a phrase that can be heard filling the hallways across many organizations as they encourage their employees to spend their budgets or risk receiving a decreased allocation for the next fiscal year. While this approach is intended to motivate staff to make use of the resources assigned to them or their departments, it can often lead to impulsive, and typically nonstrategic, budgeting choices that do little to enhance or add to the work of the organization. To avoid a similar fate, here are some spending options to consider when planning year-end spending that you won’t regret in January and February.

Invest in training and development

Your organization is only as strong as your workforce and a good starting point is considering an investment in training and development for your team. This could include taking advantage of training opportunities related to year-end, or starting a new calendar year, such as those offered through the National Payroll Institute. Many organizations find themselves playing catch-up when it comes to following through on professional development plans, and this is an organic way to review progress with each of your employees while identifying specific opportunities that can support their growth and development. For HCM professionals, year-end can bring a variety of challenges, and timely professional development can ensure that you end your year on the right foot, while proactively planning for any changes that may come in the new year.

Explore new software and technology

With the constant upgrades and advances in technology, year-end budgets might offer a unique opportunity to investigate and invest in some tools and equipment to support your employees in their day-to-day work. This could include a formal debrief on successes and challenges from the past year and potential opportunities to use technology to create efficiencies or enhance performance. Depending on the breadth of your role, technology may benefit HCM professionals across a variety of areas of the business. For payroll and accounting professionals, there may be opportunities to upgrade your current platform or transition to one that better meets your needs. For human resources professionals, consider an upgrade to LinkedIn Premium to enhance your company’s online profile and improve recruiting, or human resource management software to streamline your existing processes. Even a simple upgrade of Microsoft Office or Google Workspace might allow your team to work differently in the new year and take advantage of some of the advanced planning and communication features.

Upgrade your office and employee workspaces

While not always a priority for organizations, making upgrades to your office space or allowing employees to enhance their own workspaces can be motivating for your team as you approach the end of the year. This doesn’t mean frivolously spending on the latest and greatest fad like a treadmill desk that no one uses or a fancy coffee machine that no one knows how to program. Speak to your employees about practical investments that can allow them to perform their tasks more efficiently and make their jobs easier. Seemingly simple purchases can actually make a significant difference, like springing for a second monitor so employees aren’t forced to toggle between tabs when double checking numbers, or new headsets and cameras for easier communication on Zoom or Teams calls. These types of investments, while not always flashy, demonstrate a commitment to equipping your employees with the tools and equipment they need to perform in their roles.

The need to exhaust budgets at year-end may seem like a nice problem to have on the surface, but it can also create headaches for those responsible. Being forced to spend budgets rapidly can lead to quick decisions that don’t always pan out in the future. But if you use these funds strategically, be it registering for a conference or event at an early bird rate, adding a much-needed upgrade to your software package or supporting your employees with time saving tools and equipment, you might find these decisions are just what you need to set yourself up for a great start to the new year.





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