HR leaders brace for January ‘resignation rush’
HR departments are preparing for the wave of resignations that typically marks the start of each new year, with research by Glassdoor indicating that job applications surge 22% above average in the month of January — a predicament that creates challenges as well as opportunities for organizations looking to retain top talent.
What’s been dubbed the January “resignation rush” can be attributed to a variety of factors, explains Mary Jenson, director of people and culture at marketing agency Barbarian. “Many employees view the new year as a fresh start, prompting them to reevaluate their career paths and seek new opportunities,” she said. “Additionally, the holiday season can exacerbate feelings of dissatisfaction or burnout, leading to increased turnover.”
The financial impact of the trend for businesses should not be underestimated. According to Sandra Moran, chief marketing and customer experience officer at HCM platform WorkForce Software, the replacement of leaders and managers costs around 200% of their salary, professionals in technical roles 80% and frontline workers 40%.
Understanding the exodus
Geoff Howison, managing director at recruitment service Now Careers, identifies several drivers behind early-year departures. “Post-holiday clarity gives professionals time to reflect on their career trajectory and workplace satisfaction,” he said. “Many professionals strategically wait until after receiving their end-of-year bonuses before transitioning to new roles, making January an optimal time for change.”
Eric Mochnacz, head of operations at HR consultancy Red Clover, explains that people usually don’t leave a job because of money alone. “Someone just doesn’t decide on December 22, ‘I’m gonna quit,’” he said. “Usually, it’s a culmination of a number of factors that occurred throughout the year that made them decide to start searching for a job in the first place. The bonus is just the light at the end of the tunnel.”
HR leaders are implementing increasingly sophisticated retention strategies to curtail the trend.
Stacey Walker, senior vp and CHRO at tech company Fortive, emphasizes the importance of comprehensive support. “As economic uncertainty continues into 2025, employees will continue to expect different solutions and support from employers,” she said, adding that HR leaders should champion investment in talent mobility, enhanced career opportunities, and employee assistance programs like enhanced mental health benefits and support.
Rachel Courtney, vp of employment law and employee relations at software company Amplitude, stresses that retention has to do with much more than compensation. “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,” she said.
One must not discount burnout as a primary reason employees throw in the towel. In a recent survey by edtech company Skillsoft, more than 2,000 employees worldwide anticipated burnout and exhaustion would be their top workplace challenge in the year ahead, followed by workload, decreased motivation and engagement, and feeling undervalued and unappreciated.
Innovation in engagement
Companies have begun to go to great lengths to keep employees feeling a part of the family so they’ll be happy staying right where they are.
Izabela Blach, chief happiness officer at media agency Good Apple, said that in preparation for the new year, the HR team programmed a goal-planning session during the company’s offsite in Panama. There, employees workshoped their goals to “challenge themselves personally and professionally,” she said, including projects that align to their interests, training and development opportunities.
For shift-oriented workers, different considerations come into play. “What matters most to many employees is having control over their schedules,” said Moran. “To retain top talent, employers can offer improved scheduling capabilities that enable employees to shift swap and resolve scheduling conflicts themselves.”
Bart Lautenbach, senior vp and GM of talent solutions at HR compliance platform Equifax Workforce Solutions, points to proper offboarding processes, even when departures are inevitable. Key considerations include mitigating risk through documentation, preserving company culture during transitions, safeguarding institutional knowledge and transforming exit interviews into growth opportunities, he said.
Employee engagement and support year-round — not just whenever someone is likely to quit — is essential. “If an employee feels valued and appreciated and respected throughout the year, the bonus is a nice little bonus at the end of the year that isn’t seen as an obstacle to suffer towards in order to then be freed from an employer they don’t want to work for anyway,” Mochnacz said.
Added Walker, “Companies should prioritize continuous investment in people by proactively identifying future skills and learning and matching career paths to employees’ skills and aspirations to keep them engaged and having impact that is meaningful and recognized.”