Global companies brace for January employee resignation surge
NEW YORK, UNITED STATES — HR departments are gearing up for the annual spike in job resignations that traditionally begins in January.
Mary Jenson from marketing agency Barbarian attributes this trend to the desire for a fresh start in the new year and exacerbated dissatisfaction during the holidays.
Moreover, the financial impact on businesses is undeniable, with Sandra Moran of WorkForce Software highlighting the costly process of replacing key staff—200% of the salary for leaders and managers, 80% for technical professionals, and 40% for frontline workers.
Strategic departures and retention
The January turnover is often a calculated move by employees, according to Geoff Howison of Now Careers. Many wait to collect their year-end bonuses before making a career change. Eric Mochnacz from Red Clover adds that decisions to leave are seldom about salary alone but are the result of accumulated workplace grievances over the year.
Additionally, employees are increasingly seeking meaningful work that extends beyond traditional job responsibilities and contributes to societal well-being. This trend is particularly pronounced among younger workers, with a Deloitte survey showing that an overwhelming majority of Gen Z (86%) and millennial (89%) professionals prioritize purpose in their career choices.
“Employees are looking for meaningful work, career growth opportunities and professional development so that they can see both a clear path for advancement and a reason to stay with your company long-term,” explains Rachel Courtney, VP of employment law and employee relations.
Innovating employee engagement
As companies brace for the ‘resignation rush,’ HR strategies are evolving in response, with Stacey Walker of Fortive emphasizing the necessity for comprehensive employee support programs as economic uncertainties persist. Izabela Blach of Good Apple reveals that their team is enhancing engagement through goal-planning sessions that align with personal and professional aspirations.
“What matters most to many employees is having control over their schedules,” Moran added. “To retain top talent, employers can offer improved scheduling capabilities that enable employees to shift swap and resolve scheduling conflicts themselves.”
Preventive measures and long-term strategies
Retention efforts are focusing on more than just compensation. Bart Lautenbach of Equifax Workforce Solutions discusses the critical role of effective offboarding to maintain company culture and minimize risks during transitions.
In conclusion, as HR leaders face the challenge of the January ‘resignation rush,’ their focus is on not only managing departures but also on fostering an engaging, supportive, and fulfilling work environment to retain their workforce.
