This newsletter from Work-Life Media, a favorite publication of mine, got me reflecting. Every January, job applications spike 22% above average in what HR calls the "resignation rush." While this rush comes with financial consequences—costing up to 200% of a leader's salary to replace them—the more intriguing question lies beneath the surface: What’s really driving these departures?
Why New Year Departures Happen
It’s tempting to chalk it up to year-end bonuses, but my work with organizations reveals three deeper psychological dynamics that come together in January:
The Holiday Pause Effect December’s slower pace creates rare opportunities for reflection. While pretending to listen to updates about their second cousin’s new house renovation at holiday dinner, some employees are actually questioning how much longer they can take their unhappiness at work.
New Year, New Story As natural storytellers, we’re drawn to the symbolic “fresh start” of a new year. It’s a moment that makes big life changes—like leaving a job—feel more achievable and aligned with their personal resolutions.
Post-Holiday Contrast Returning to work after meaningful time spent with people we love can bring a stark emotional contrast to our work experience. It can prompts employees to think about their work-life integration and imagine what truly fulfilling work might look like.
By the time someone submits their resignation in January, the decision was often made months earlier. The new year simply provides the momentum—or permission—they need to finally act on it.
What Companies Misunderstand About Retention
Many organizations react to these departures with surface-level strategies—higher pay, perks, or engagement initiatives. But these miss the core issue. People don’t leave jobs; they leave dysregulated systems.
In a dysregulated system, you'll notice:
Chronic stress and burnout
A lack of psychological safety
Misalignment between values and lived experiences
Few development opportunities
Eroded trust and connection
No perk can compensate for these systemic issues. January resignations are the result, not the cause.
A Better Way Forward
Rather than scrambling to fix January resignations, leading organizations proactively address the root causes year-round by fostering:
Proactive Co-Regulation
Leaders who manage their own stress and guide their teams through change effectively.Trust-Based Growth
Development pathways that empower employees to grow within the organization.Aligned Purpose
Connecting work to something meaningful beyond performance metrics.
What This Means for 2025
As we step into the new year, the focus shouldn’t be on preventing departures but on building organizations where people choose to stay because they thrive. Successful organizations prioritize:
Leaders who model self-regulation and resilience
Systems that inspire trust amid uncertainty
Cultures where growth and purpose align
Environments that balance connection and performance
January resignations aren’t just about the new year—they’re about the environments we create. Leaders who focus on alignment, trust, and growth can transform workplaces into spaces where people choose to stay and thrive.
Deepening the Work:
If these themes resonate, consider joining one of these upcoming programs:
January 9: Free Webinar – Leading Through Political Transitions
Learn practical tools to foster trust and connection in polarized times.January 14: SHIFT Foundations Course
A 7-module self-paced program designed to build core leadership skills for navigating complexity.February 10: SHIFT Experience Cohort
An 8-week intensive combining live coaching with peer learning to put these principles into practice.