Switching from airplane mode back to 5G or WiFi does not always bring with it the sense of security that we think it does, especially when employees must make the mental shift from holiday mode back into work mode, and not just normal work mode, refreshed, post-holiday, January work mode. The expectations of the new year are great. We are now finding ourselves circling back to everything that was “put on ice”, “tabled” or “parked” until the new year. All of these projects and new ideas require refreshed employees to tackle these head on and with passion. But you might be finding the opposite to be true, in that, you have employees that are suddenly resigning or who are taking time off to attend job interviews. You might be asking yourself: “why?”, considering they have just taken their annual leave and should be revitalized. While you were expecting a January re-fresh, you might actually be experiencing a January slump.

The effect of December Reflection

Employees might resign in January, but the resignation decision starts much earlier. Research has demonstrated that “quiet quitting” or being mentally checked out of one’s work can occur as early as 9-12 months before employees actually resign. As most employees take their annual hard-earned leave in December due to organisational shutdowns or just planned time off, they gain distance from the daily pressures of the workplace and have an opportunity to reflect. Employees might be questioning if they can tolerate another year working in their current situation or under the current conditions, if their role still aligns with their goals, or if they are in fact growing or just merely coping and getting by. Employees often have time to consult with friends and family over December, where workplace stories are frequently exchanged and comparisons are drawn. This level of reflection often turns into disengagement or “quiet quitting”, if it hasn’t already, long before the resignation letter is drafted. Often, the decision to resign is already made in October or November of the previous year, but since companies put a freeze on recruitment towards the end of the year, employees are waiting in limbo for an outcome of their interview process which might only be provided in January the following year. Once an employee has mentally checked out, their productivity, momentum and overall morale suffer, even if they have not resigned yet. This means that by the time January arrives, employees have already applied for new roles during the end-of-year slump and burnout, have interviewed and awaited job offers which might have been delayed and are returning to work hoping that things have changed, and if not, are ready to jump ship.

The execution dysfunction

January is considered the peak resignation month; a resignation surge. This is a familiar and costly phenomenon that has been trending for some time now. But why does this happen and how do we slow it down or prevent it? Resignations in January are not due to employee laziness or a lack of resilience. At its core, January resignations lend itself to what is called “executive dysfunction”. That is months, or even sometimes years, of unresolved frustration reaching tipping point due to primarily a perception of leadership dysfunction.

Research from the Harvard Business Review, the Society for Human Resource Management and Gallup, a global research company, have found that many high performers resign in January because they have watched their managers and leaders finalise the new year’s plans which frequently guarantees the same execution failures as previous years. This could be attributed to priorities being recycled without being reviewed and refined; severe and obvious risks being ignored or undermined; projects approved without sufficient financial and people resources, as well as the same level of indecision from leaders. With this in mind, there is the lingering feeling that not much will change. The execution dysfunction demonstrates that high performers do not leave their jobs or the company because the work is tough, but rather because they feel that work is pointless, tedious and somewhat disconnected from impact. Mastery and purpose can be viewed as two of the most prominent motivators for high performers. Repeated patterns of failure, non-recognition, and stagnation eliminate the sense of purpose and mastery over one’s work that high performers need to feel.

The influence of leadership

We all know that leadership can make or break an organisation. Not just in terms of the fiscal and operational aspect, but in terms of culture, morale, satisfaction and employee turnover. According to Gallup, 75% of voluntary employee turnover is driven by factors that are within the control of leadership and management. This may include insufficient support provided to employees, inefficient and/or a lack of informed and purposeful communication, unclear employee expectations, and an overall lack of accountability amongst employees and the management team alike. Leaders are passionate visionaries who are expected to strategise various methods to take the company to new heights. However, the same passion cannot be expected of employees without providing them with sufficient context of their role within the organisation or their role in achieving organisational objectives and goals. Communication of strategic decisions influencing operational matters is a crucial part of effective leadership. Expecting employees to buy into the company’s vision and mission without clarity, and to remain blindly loyal is another avoidable leadership fault. One cannot expect employees to care as deeply about the organisation as the owners or leaders do, without being given opportunities for mastery and growth, support, visibility and purposeful work. Of course, there are other factors at play, such as a feeling of inequity (feeling undercompensated and overworked), burnout being amplified by post-holiday workloads, outcomes being recognised instead of the employees who helped achieve those outcomes, and demanding employee growth without investing in developing employees or ensuring the management team are capable and equipped with the necessary management tools.

How to slow down the January resignation trend

In assessing the above factors, we can see that there is a significant cost associated with this trend. Beyond the salary replacement costs, there is a great impact on productivity, teams are disrupted, onboarding and training takes time, morale might be reduced and individual growth might be slowed. From this, it is noticeable that retention is not just an area for HR focus and intervention, but also a priority for leadership.

Leaving a job or workplace is not always a bad thing. People grow, and outgrow roles and organisations. Lifestyles and priorities change, and sometimes occupational change is needed. The goal should not be to stop people from leaving. The goal should be to ensure that employees do not leave the workplace in December feeling burned out and like they just crawled their way to their leave period. It should be to ensure that employees return to the workplace in January as engaged and refreshed employees, not resentful for being back at work and already quietly planning their exit.

Since leadership appears to be the golden thread, is it crucial that leaders and managers alike lead with honesty and accountability. Establishing clear lines of authority, ownership and decision-making discretion is vital. Projects need to be reviewed and those that drain resources but do not produce value, need to be cut. Employees who alert leaders to risks, inefficiencies or the so-called “uncomfortable truths” should be acknowledged and rewarded, instead of silenced. This comes with strengthening a sense of belonging and recognition where employees are recognised for who they are, not just their outcomes, or lack thereof. Offering a genuine “thank you”, taking interest in employees, and building personalised development and retention strategies, can help retain your high-performers and long-serving employees. Good leaders will invest in people by developing their potential and capability, not just their technical skills. This includes offering opportunities for employees to take accountability and make decisions within their scope of work, providing meaningful and challenging (albeit manageable) work. Learning, growth and development are critical for all employees, not just the top performers. Equally as important, is addressing engagement proactively. That means, listening to employee concerns and feedback, and acting on it in a reasonable timeframe and an intentional manner. Addressing fatigue and disengagement before it reaches burnout stages includes offering mentorship relationships, setting clear development and succession plans with visible career pathways, and promoting growth opportunities. Be open and honest about finances. That includes company finances and employee finances. No one wants to have the awkward discussion about compensation, but these conversations are so important in ensuring employees feel valued and supported. Finally, but most critically, communicating the vision clearly. Invest time in explaining where the business is and where it should be, what the vision is, what the objectives are, and what the employee’s role is in achieving those objectives. Asking for feedback on the company direction and promoting discourse around this makes employees feel that they are part of the company strategy and have some level of input.

Final thoughts

January resignations are rarely impulsive. Instead, they are a result of months (possibly years) of misalignment, missed leadership opportunities, dissatisfaction and disengagement. Retaining employees during January and February could point to employers being more intentional with their leadership and culture. That is, listening, understanding, engaging and executing with clarity. While one can aim to reduce this trend, it may be inevitable for some. Joubert and Associates can offer assistance with both prevention and cure, in our leadership training as well as our recruitment services. If you require assistance with either function (or both), please reach out to us via email (info@hrsa.co.za), visit our website (joubertassociates.co.za) or give us a call (021 863 0966). Let’s ensure that your employees come back ready to contribute, and not ready to leave!