For many small businesses and HR Departments, January traditionally heralds the time of year when employee turnover increases. This can be a double-edged sword.
The New Year: a great time to recruit
Holidays, especially those that involve New Year’s resolutions, offer people a time to reflect and catch their breath. This often means they start thinking about moving on. Or they may realise how unhappy they’ve been in their current job. They may feel undervalued or simply think they can earn more in the greener pastures on the other side.
The New Strategy: full compliance
From an HR perspective, January also presents an opportunity to take a proactive and strategic approach to workforce planning. With a fresh year ahead, businesses can reassess role requirements, update position descriptions, and ensure remuneration and benefits remain competitive in the current market. It’s also an ideal time to refine recruitment processes, strengthen employer branding, and ensure employment contracts and onboarding practices are compliant and fit for purpose—setting both new and existing employees up for success.
The HR Audit: checks and balances
A strong system of HR checks and balances is essential at the start of the year. This includes reviewing delegation of authority, performance management processes, payroll accuracy, leave entitlements, and disciplinary procedures to ensure they are applied consistently and fairly across the business. Effective checks and balances not only reduce compliance risk and exposure to claims, but also promote transparency, accountability, and trust—key factors in retaining employees during periods of change such as the January transition.
The other side: an increase in resignations
On the other hand, your business may find it’s dealing with resignations. For smaller businesses, the resignation of a key staff member could have a huge impact – leaving gaping holes in knowledge and skills. It’s important to monitor your staff engagement levels in the early weeks and months of the new year so you can spot potential leavers before they act.
While you cannot stop the January itch to start the new year afresh, you can ensure your employees feel they are valued, supported and can grow within your business. If they still choose to leave, wish them well.
Give The HR Dept a call if you need a hand with resignations and recruitment. Our team is here to help you navigate the highs and lows of HR with ease.