Is Your Workforce Ready for 2027? Five Things Washington Employers Should Review Before Year-End
As we approach the end of 2026, now is a great time for Washington employers to take a closer look at their workforce, staffing budgets, and hiring strategies for the year ahead.
It's hard to believe we're already heading into another new year! For many businesses, this is the time to wrap up projects, review budgets, and begin setting goals for what's next.
One area that shouldn't be overlooked during this process is your workforce.
Whether you're a small business with a handful of employees or a larger operation managing multiple departments, taking some time to evaluate your staffing needs now can help prevent challenges down the road.
With upcoming changes to Washington employment laws, increasing labor costs, and the ongoing challenge of finding qualified employees, a little planning can go a long way.
Here are five things we encourage employers to consider as we prepare for 2027.
Get Ahead of Washington's Employment Law Changes
Washington employers have several important changes to prepare for in 2027, and some of these updates could have a significant impact on labor budgets.
Beginning January 1, 2027:
Washington's minimum wage increases to $17.73 per hour, up from $17.13 in 2026. Some cities have higher local minimum wages.
Overtime-exempt salary thresholds increase. Employers with 50 or fewer employees will need to meet a minimum annual salary threshold of $82,976.40, while employers with 51 or more employees will need to meet $92,196 for applicable exemptions. Employees must also satisfy the relevant duties and salary-basis requirements.
Washington Paid Family & Medical Leave premiums increase to 1.2%. Employers should review payroll settings and applicable contribution requirements.
These are just a few of the changes worth reviewing before the new year.
For employers, this is a good opportunity to review employee classifications, compensation structures, payroll practices, and internal policies to ensure everything is aligned with current requirements.
Don't wait until January to find out your labor budget needs adjusting!
Take a Closer Look at Your Labor Budget
When was the last time you evaluated whether your wages are competitive in today's hiring market?
We regularly work with employers across a variety of industries, including manufacturing, construction, skilled trades, administrative, and professional services. One thing we continue to see is how important it is for employers to understand what it takes to attract and retain qualified employees.
When developing your 2027 labor budget, consider more than just hourly wages or annual salaries.
Think about overtime expenses, employee benefits, turnover, training costs, and the productivity lost when positions remain unfilled.
It's also worth evaluating whether your compensation ranges are aligned with the qualifications and experience you're looking for.
A little market research and planning now can help you make more informed hiring decisions in the months ahead.
Identify Your Staffing Gaps Before They Become a Problem
It's easy to get caught up in the day-to-day demands of running a business. Often, staffing needs don't become a priority until someone gives notice, production increases, or an important project falls behind schedule.
But what if you could get ahead of those challenges?
As you look toward 2027, ask yourself:
Are there positions we've struggled to fill this year?
Do we anticipate growth or additional projects?
Are certain employees consistently working overtime?
Do we have upcoming retirements or potential turnover?
Would temporary or contract staffing help us manage fluctuations in workload?
Identifying these needs early gives you more flexibility to explore your options rather than making rushed hiring decisions.
And if you anticipate needing employees in the first quarter, now may be a great time to begin those conversations.
Don't Forget About Employee Retention
Hiring the right people is important, but keeping them is just as valuable.
As you review your workforce, take some time to think about what's working well within your organization and where there may be opportunities for improvement.
Employee retention isn't always about offering the highest wage. Communication, leadership, workplace culture, opportunities for growth, and feeling valued all play a role in an employee's decision to stay.
Consider checking in with your team before the end of the year.
What challenges are they experiencing? Do they have the tools and support they need to be successful? Are there opportunities to improve processes or develop employees internally?
Sometimes, the most valuable information comes directly from the people doing the work every day.
Investing in your current workforce can help reduce turnover and create a stronger foundation for future growth.
Build a Recruiting Strategy That Supports Your Business Goals
One of the biggest mistakes businesses can make is waiting until they desperately need someone before starting the recruiting process.
Finding the right employee takes time, especially when you're looking for specialized skills, industry experience, or leadership capabilities.
Having a recruiting strategy in place allows your business to be more proactive.
That might mean building a pipeline of potential candidates, reviewing job descriptions, evaluating compensation, or identifying positions where temporary, contract-to-hire, or direct-hire recruiting could be beneficial.
Working with a staffing and recruiting partner can also provide access to additional resources, market insight, and candidate networks that support your internal hiring efforts.
The goal isn't simply to fill positions. It's to find the right people who can contribute to your organization's long-term success.
Start Planning Now for a Stronger 2027
Every business has different goals, challenges, and workforce needs. There isn't a one-size-fits-all approach to staffing, and that's why taking time to evaluate your individual needs is so important.
At Human Resources, Inc., we enjoy working with local employers to better understand their businesses, identify workforce challenges, and develop staffing solutions that make sense for their operations.
Whether you're planning for growth, reviewing compensation, preparing for upcoming staffing needs, or simply looking for additional recruiting support, we're here to help.
Let's make 2027 a great year for your business and the people who help make it successful!
Human Resources, Inc. | Your Local Staffing & Recruiting Partner
Disclaimer: This article is intended for general informational purposes and does not constitute legal advice. Employers should consult the appropriate state agencies or qualified employment counsel regarding specific compliance requirements.
