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 Companies Can Stay Ahead Of The ‘January Resignation Rush Trend’
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 also explains data shows that replacing leaders and managers costs around 200% of their annual salary, replacing professionals in technical roles costs 80% of their salary and replacing frontline employees costs 40% of their salary. Given the high cost of labor, Moran insists that companies must ensure that every member of their workforce feels engaged and supported. She advocates support for individualized programs, training and technology that addresses all employees, including mid-life and older professionals to part-time gig workers and shift-based staff.
Businesses can leverage technology to address staffing challenges, engage staff and retain top talent, according to Moran. “Modern workforce management technology can assist in proactively identifying employee issues like burnout and potential turnover leveraging data to detect changes in absenteeism, tardiness, work pattern changes and sentiment,” she says. “It can also help address an important aspect of work-life balance by enabling more scheduling control and streamlining employee scheduling.”
As an example, she notes that technology can use real-time data on consecutive hours and shifts that employees work to identify those who may be overworked. She adds that they can then prompt managers to communicate directly with staff, acting in the moment to prevent burnout. She continues that by leveraging employee skills data and preferences, managers can assign appropriate workers to suitable tasks, improving productivity and ensuring a balanced workload.
“Keeping track of every detail to ensure operations is meeting regulatory requirements is difficult,” Moran acknowledges. “Having the right employee scheduling program can help balance the challenges of scheduling while keeping the organization compliant.”
Strategies To Reduce the ‘January Resignation Rush Trend’
Moran told me that creating a workplace that values mental health is essential for retaining top talent. “Encouraging open discussions about well-being and offering mental health resources can make a significant difference,” she stresses.” Leaders can also support employees by actively listening and regularly meeting with employees so they can hear directly from their teams. Doing so fosters meaningful two-way conversations and shows employees that their experiences and feedback are valued.”
According to Moran, the best leaders not only take time out of the day to offer feedback, provide direction and set expectations, they also pause to celebrate their employees and teams and recognize both big and small accomplishments. She adds that recognition and celebration not only foster a sense of trust but also ensure that employees feel encouraged to do their best.
She recognizes that data-driven insights revolutionize workforce planning. “Workforce management platforms are used by employees multiple times every day and can offer a continuous stream of data that can be transformed into actionable insights, including skills, preferences, hours worked and more,” she asserts. “Beyond the benefits of providing employees with collaboration tools and resources that make work easier and support effective communications, this technology provides organizations with a rich source of data that can improve productivity and support a positive employee culture.”
Flexibility And The ‘January Resignation Rush Trend’
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 gives a word of caution to employers. If your company doesn’t adapt, she warns, you may face challenges hiring top talent and retaining experienced staff and potentially affecting productivity and service quality. Integrating flexible work models with modern workforce management solutions can minimize the “January Resignation Rush Trend,” ensuring both operational efficiency and compliance while benefiting employees and organizations.