Table of contents
- Are employee resignations high in January?
- Top reasons why employees leave from their jobs in January
- Six ways to convince employees to stay
- Are you looking for more ways to improve employee retention?
Are employee resignations high in January?
January was named for the two-faced Roman god Janus, who looks forward to new beginnings and backward for reflection and resolution. The start of a new year usually is a time when people consider what changes they would like to make in their lives or, better yet, what goals they would like to achieve in the coming year.
The same stands true when it comes to employees. Glassdoor research shows that job applications are higher by 22% in January compared to the typical month.
Work is such a big part of people’s lives that the start of a new year is when people look to reassess their job roles. If someone’s been unhappy at work and has time to reflect over the holidays, it might be when they decide to do something new. But while employees seek new opportunities, employers face a storm of employee resignations.
Unless employers take time to understand why their employees are planning to throw in the towel employee turnover will remain high. This blog post explores why employees resign in January and what steps employers can take to retain them.
Psst… these reasons for resigning apply at any time of the year when your employee is planning to resign.
Top reasons why employees leave from their jobs in January
Through employee surveys, direct feedback, or paying attention to industry trends, find out what is frustrating for employees in your industry and what leads to high employee resignations.
The new year, new me resolution
There’s a moment when the holidays are finished and the pleasure of catching up with colleagues and clients is over when it’s natural to question whether you’re happy in your job or are ready to consider another role.
January may be one of the coldest and most dismal months of the year, but it’s also the start of something new. The festive break provides a change from the routine and time to consider whether what we do every day is really what we want to be doing every day.
The bonus buffer
It’s common for employees to leave after the bonus payout. It just makes sense. The bonus is something that the employee has earned through their work and performance but which is paid after the fact – typically several months after the reference period has ended.
Battle of compensation stagnation
According to a Monster global survey poll, 18% of respondents had never received a raise, and slightly more than 26% of those polled had not received a raise in over one year. The reason likely has less to do with employee performance than with employers themselves. Employees resign when they feel that it’s time to move to a better employer and a more lucrative position.
Looking for a new challenge
People start job hunting when they feel stagnant. The top reason 4,900 professionals who participated in a Korn Ferry survey were looking for a new job in 2018 was boredom. One-third of respondents selected “I’m bored and need a new challenge” as their motivation for moving on.
Job location or length of commute
Many people are quitting their jobs due to an overall lack of flexibility. A desire to work remotely has been a sticking point for many employees. Gallup found that 37% of employees would switch to another job that allowed them to work remotely, at least part-time.
As the old saying goes: People leave managers, not jobs. One of the biggest factors that contributes to employee turnover is bad managers. Suppose a company has a high employee resignation and retention problem. In that case, they should consider training their managers to ask for feedback, admit mistakes, and adapt their management style to the employee instead of taking a one-size-fits-all approach.
Zero future job prospects
Even in a somewhat stagnant environment, an employee could have significant growth potential if they were on track for a promotion. On the other hand, if a company hasn’t promoted an employee from within in a while and the bosses don’t seem to be priming employees for new job responsibilities, a future in the company seems doubtful.
Six ways to convince employees to stay
To keep your employees from resigning, consider trying these six employee retention strategies:
“Anger always comes from frustrated expectations.” – Elliott Larson
One way to improve employee effectiveness and deliver on expectations is to manage expectations effectively and proactively. Transparent and robust communication is often the solution to most problems related to expectation management. If a high-performing employee seems disengaged, managers should sit with them and have a frank conversation about the changes in performance.
Flexible working conditions
Work–life balance is more important than income in this post-pandemic environment, so having a flexible workplace has officially topped the list of employee demands. Flexible schedules are undoubtedly one of the most sought-after benefits from businesses.
More than half (54%) of employees surveyed worldwide said they would consider resigning their jobs if they didn’t have some flexibility in where and when they worked after the COVID-19 outbreak. This indicates that absenteeism and employee turnover can be reduced when employees have more freedom. Employees want to have complete control over their lives and tasks, which increases engagement and productivity.
Learning and development opportunities
Engaging with employees to chart their future in a way unique to their experience, interests, and passions, instead of predetermining their path without any input, reinforces that employees are a valued part of the organization’s long-term success. It helps employees prepare for and move to new or expanded roles in visible ways. Also, in small, subtle ways, it quietly creates greater challenge, interest, and satisfaction in a job.
Preparing employees for future vacancies within the organization can help the entire workforce stay committed and future-minded. Succession planning provides a clear opportunity for employers to fulfill employees’ need for growth and boost employee retention while bringing broader benefits to the organization.
In a 2022 Pulse of Talent survey of 6,800+ employees from around the world, 37% of respondents said opportunities for career advancement would convince them to leave their current job for a new role. Another 27% said they would leave for opportunities to learn and develop new skills.
Now, knowing what makes a good leader and how to keep the team motivated is more critical than ever. Additionally, it helps to create an environment where employees can thrive. The modern leader must strive to create an environment where expectations are clear, hard work is recognized, and employees are motivated to accomplish their goals.
Paying your employees a competitive salary based on their skills and experience is one of the best ways to increase retention. Competitive pay increases not only retention but also productivity. A Paychex study found 63% of employees named low salary as their top reason for employee resignation.
Furthermore, offering competitive benefits packages effectively increases employee retention, as employees won’t be searching for better benefits elsewhere.