Employee Retention: Why people leave and what companies can do about it

For many companies, employee turnover can feel frustratingly unpredictable. One month everything feels stable; the next, resignations start landing with little warning. While certain times of year — particularly January — tend to highlight the issue, retention is not a seasonal problem. It’s an ongoing one. 

People rarely leave on a whim. In most cases, resignation is the final step in a decision-making process that has been unfolding quietly over time. Understanding what drives that decision — and when companies still have an opportunity to influence it — is key to improving retention. 

Resignations Are a Result, Not a Surprise 

Job-search activity does spike at certain points in the year. January is well known for increased traffic on job boards, as people use the Christmas break to reflect, update CVs and explore new opportunities. September can bring similar energy, driven by a “fresh start” mindset after summer. 

But these moments don’t cause people to leave — they simply accelerate action. 

Research suggests that: 

• 74% of UK employees report feeling disengaged at work 

• A significant proportion of employees consider leaving their role each year, often long before they actively apply elsewhere 

By the time a resignation is submitted, the emotional decision has usually already been made. From a retention perspective, that means the most important work happens well before an employee starts browsing job boards. 

Patterns Matter More Than Dates 

Some companies see clear patterns in when people leave. This might align with: 

• Bonus payments 

• Performance review cycles 

• Financial year-end 

• Specific tenure milestones 

For example, where bonuses are paid in a lump sum, employees who have already decided to leave may simply wait until the payment is received. Other companies may see higher turnover shortly after annual reviews, when expectations around progression or reward haven’t been met. 

These patterns are rarely visible unless companies take the time to analyse their data. Looking beyond why people leave to also consider when they leave can provide valuable insight into where retention efforts should be focused. 

Burnout, Stagnation and the Role of Reflection 

Retention challenges are often closely linked to how people feel over time. 

Periods of sustained pressure, lack of recovery, or unclear priorities can lead to burnout. Equally, employees who feel stuck — with limited development or progression — may slowly disengage even if their workload is manageable. 

Certain points in the year naturally encourage reflection. Slower periods, time away from work, or personal milestones can prompt people to reassess what they want from their role and whether their current company still fits. 

If that reflection leads to the conclusion that “nothing is likely to change,” retention becomes much harder. 

Why Exit Interviews Don’t Solve Retention 

Exit interviews can be useful, but they are not a solution to turnover. 

By the time an exit interview takes place, the opportunity to influence the outcome has passed. Their real value lies in identifying themes and trends — such as lack of progression, pay concerns, or management issues — that can inform future action. 

Retention is driven by what happens before someone decides to leave, not by what’s said once the decision is made. 

What Actually Improves Retention 

While every company is different, effective retention strategies tend to focus on the same core areas. 

Career development and progression 

Employees are far more likely to stay when they can see a future for themselves. This doesn’t always mean promotion, but it does mean growth — new skills, stretch opportunities, and honest conversations about what comes next. 

When development discussions are limited to annual reviews, companies often miss the moment when motivation starts to dip. 

Strong, attentive line management 

Line managers play a critical role in retention. Disengagement rarely arrives announced; it shows up in small changes in behaviour, energy and contribution. 

Regular one-to-ones, open conversations and managers who are attuned to their teams can make a significant difference — particularly when issues are addressed early. 

Pay that keeps pace with the market 

For many employees, the fastest way to increase pay is to move companies. Regular market reviews and proactive pay decisions reduce the risk of salary becoming the deciding factor — and help avoid costly counter-offers later. 

Consistency over quick fixes 

Reactive initiatives introduced when turnover spikes — whether that’s wellbeing campaigns or engagement activities — often come too late. Retention is built through consistent action, clear communication and follow-through throughout the year. 

A Continuous Approach to Retention 

While certain seasons may highlight retention challenges, they rarely create them. Turnover is usually the result of accumulated experiences: conversations that didn’t happen, development that stalled, or concerns that went unnoticed. 

Companies that approach retention as an ongoing priority — rather than a reaction to resignation spikes — are far better placed to keep their people engaged and committed. 

Retention doesn’t start with a resignation letter. 
It starts with everyday conversations, long before someone decides it’s time to leave. 

For more on this topic, check out our episode ‘Why Do I Always Get Resignations In January?’ on The HR Podcast. Available on Spotify and Apple Podcasts.