“My job’s been a pressure cooker of rush projects, travel and late-night emails for the last two years. The final straw came on Christmas. My boss decided I’d be the one to cover any calls, as everyone else was married. After that, it wasn’t a difficult decision. I’m trading my corporate paycheck for peace of mind and evenings and weekends off. My new job has a lower salary but healthier boundaries.”
“I’ve coasted too long. When my husband and I talked about New Year’s resolutions, he said, ‘You’re always complaining about your boss and co-workers. Why don’t you do something about that?’”
“Layoffs and lockdowns during the pandemic showed me how fragile my job security was and would be if I remained an employee. I decided last January to spend the year planning my own business and building a financial cushion. I put the finishing touches on my business plan in October and started small with a few remote clients. I turned in my resignation the day after my annual bonus hit my bank account.”
Employers, brace yourself.
The January resignation rush is coming. Research shows job applications surge 22% in January over the average month.
Three reasons underlie this phenomenon.
Employees often view the new year as the perfect time to reevaluate career paths, seek new opportunities and forge a fresh start.
Holiday season stresses can intensify feelings of burnout or job dissatisfaction for many.
Employees already planning to depart wait until after receiving their end-of-year bonuses before resigning.
The question employers need to answer
With employees thinking “Leaving sure sounds good,” employers need to answer the “Why you should stay” question before it’s asked. The bitter truth employers need to swallow: Economic uncertainty hasn’t lowered employee expectations, it has raised them. Employees now demand ongoing investment from their employers to feel valued.
In Chapter 8 of my book “Managing for Accountability,” I outline strategies employers can use to keep employees engaged and committed to staying because they feel valued and that their current employer offers the best deal. My favorite: the “stay interview.”
The power of stay interviews
Stay interviews offer employers direct insights into what their top talent needs to stay motivated and loyal. These conversations are most effective when they start early — after an employee’s first month — and continue throughout their tenure.
Instead of guessing whether an employee values a raise, decision-making autonomy or the flexibility to work from home, employers get a clear roadmap of what matters most. For example, one employee might crave new challenges or professional development, while another may prioritize work-life balance. A generic approach — like giving everyone a pay bump — misses the mark and risks the loss of valuable team members.
Stay interviews also uncover potential issues before they fester. If an employee is browsing job boards, the employer can address concerns early, strengthening retention. For a detailed list of stay interview questions, click here.
The case for staying
For employees, staying with a current employer can mean job security — especially during uncertain economic times. Long-term employees often gain access to career advancement opportunities, skill-building programs and the trust of leadership. Frequent job-hopping also raises red flags for future employers, potentially limiting career growth.
The case for leaving
Changing jobs can bring significant salary increases, as many employers offer competitive compensation packages to attract new talent. As of April 2023, employees changing jobs benefited with an average salary increase of around 13%, while employees who remained with current employers saw average pay increases of half that, or 7% to 8%.
Further, many employers launch new budgets and projects in January, leading to increased hiring and offering job seekers a broader range of opportunities.
An employer’s call to action
To navigate the January resignation wave, employers need to get proactive. Stay interviews aren’t just a retention tool — they’re a chance to build trust, show commitment and ensure employees feel their current job is best. In a competitive market, understanding and meeting employee needs isn’t just nice — it’s essential.