There are so many moving parts in January that raise the stress levels of the American workforce. The first quarter of the New Year is a critical time when performance evaluations are conducted, bonuses are awarded and promotions are decided. Employees make more career mistakes that could be detrimental to their professional growth. And as the new year begins, “The January Resignation Rush Trend” is driven by the psychological trigger of the New Year when employees rethink what they want from their careers and what their workplaces can do for them. Many employees see this as the ideal time to make a career change or switch to a role that better aligns with their goals.

How Businesses Can Navigate the 'January Resignation Surge' Effectively

I spoke by email with Sandra Moran, chief customer experience officer at WorkForce Software, now part of ADP, about the “January Resignation Rush Trend.” According to her, the trend proves that employee engagement should remain a priority. She believes ignoring it can lead to real consequences, pointing out that, “Employees are more than four times as likely to quit their jobs when they don’t feel valued and supported.”

Moran highlights that data indicates the expense of replacing leaders and managers can reach about 200% of their yearly salary. For technical professionals, the replacement cost is approximately 80% of their salary, while for frontline workers, it stands at 40%. In light of these substantial labor costs, Moran emphasizes the importance of organizations making sure every employee feels valued and supported. She promotes the implementation of tailored programs, training, and technology that cater to the diverse needs of the workforce, from mid-career and older professionals to part-time gig workers and shift employees.

According to Moran, companies can utilize technology to tackle staffing issues, enhance employee engagement, and retain exceptional talent. “Contemporary workforce management tools can help in the early detection of employee concerns such as burnout and the risk of turnover by analyzing data related to absenteeism, lateness, alterations in work habits, and employee sentiment,” she explains. “Additionally, it plays a crucial role in promoting work-life balance by providing greater control over scheduling and simplifying the scheduling process for employees.”

For instance, she points out that technology can analyze real-time information regarding the consecutive hours and shifts employees put in, helping to pinpoint those who might be overworked. She emphasizes that this enables managers to engage directly with their team members, allowing for immediate action to avoid burnout. Furthermore, she explains that by utilizing data on employee skills and preferences, managers can effectively match the right workers to the right tasks, enhancing productivity while maintaining a balanced workload.

Moran recognizes that monitoring every aspect to guarantee operations adhere to regulatory standards can be quite challenging. "Utilizing an effective employee scheduling system can alleviate the difficulties of managing schedules while ensuring the organization remains compliant," he states.

Approaches to Mitigate the 'January Resignation Surge' Trend

Moran emphasized the importance of fostering a work environment that prioritizes mental health to keep high-performing employees. She stated, “Promoting open dialogues about well-being and providing mental health resources can have a profound impact.” Additionally, she pointed out that leaders can enhance support for their teams by engaging in active listening and holding regular meetings with staff, allowing them to receive direct input from their employees. This approach cultivates genuine two-way communication and demonstrates to employees that their insights and experiences are appreciated.

Moran emphasizes that effective leaders dedicate part of their day to give feedback, offer guidance, and establish clear expectations. Additionally, they make it a point to acknowledge and celebrate the achievements of their employees and teams, regardless of scale. She highlights that such recognition and celebration not only build trust but also motivate employees to perform at their highest level.

She acknowledges that insights derived from data are transforming the approach to workforce planning. “Employees interact with workforce management platforms several times a day, generating a constant flow of data that can be converted into actionable insights, such as skills, preferences, hours worked, and beyond,” she states. “In addition to equipping employees with collaborative tools and resources that simplify their tasks and enhance communication, this technology offers organizations a valuable reservoir of data that can boost productivity and foster a positive workplace culture.”

Adaptability and the 'January Resignation Surge Phenomenon'

Top business leaders argue that “work-from-anywhere” isn’t going anywhere in 2025. And research agrees that work flexibility is the most important leadership skill. The data supports Moran’s argument that flexible work arrangements—such as flextime and self-scheduling—improve employee satisfaction and work-life balance, especially among the deskless workforce. When employers offer it, she says, employees have higher engagement, reduced turnover and stronger retention.

Moran advises employers to exercise caution. She warns that if your company fails to adapt, you could encounter difficulties in attracting top talent and keeping seasoned employees, which could ultimately impact productivity and the quality of service. By incorporating flexible work arrangements along with contemporary workforce management solutions, companies can mitigate the "January Resignation Rush Trend," promoting operational efficiency and compliance while simultaneously benefiting both employees and the organization as a whole.