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After the Spring Festival, employee resignations and job-hopping seem to be a common issue for many companies. Especially when core team members leave, it not only creates a talent shortage but also causes significant revenue losses. For large enterprises with strong brands, there might be some buffer, but for many SMEs, the impact is enormous. Whenever we communicate with business owners, they are eager to learn how to prevent this "losing both people and money" situation, particularly regarding the departure of core team members.
I. Common Causes of the Post-Spring Festival Resignation Peak
Year-end bonus incentives: Many companies use year-end double pay, annual bonuses, or year-end dividends as incentives. However, more and more companies are finding that employees who intended to change jobs often wait until after the Spring Festival to receive their bonuses before resigning.
Unrealistic annual plans: For example, Company A achieved sales of only 20 million yuan in 2013, yet at the annual summary meeting, they set a massive target of 100 million yuan for 2014. Without supporting measures, this goal seemed unattainable, leading employees to think, "Since we can't achieve the plan and won't get bonuses at year-end, I might as well leave early rather than waste my time."
Incomplete year-end promotion system: Many companies promote a batch of excellent employees at year-end. Conversely, those who don't get promoted may feel unbalanced and resign.
Mismatched expectations: Xiao Li, an employee at a company, worked diligently and received recognition from leaders. He expected a substantial year-end bonus, but the actual amount fell short of his expectations, not matching his efforts. In frustration, he submitted his resignation.
Paid leave benefits: Besides the statutory 7-day paid Spring Festival holiday, many companies offer additional 3+ days off, plus the 5-day annual leave. This gives employees nearly half a month off, and many who want to leave will wait until after their paid leave to resign.
II. Why Do Core Team Members Leave?
Xiao Wang, a core sales manager at AB Company, was proactive and contributed significantly to the company's performance. The company planned to groom him as a key talent. However, on the third day after the Spring Festival, HR received his resignation letter, leaving the boss, Mr. Chen, perplexed.
This situation is common in many companies. After analysis, we identified several main reasons:
Boss's lack of integrity: Although many bosses understand the principle of "wealth gathers people, scattering wealth gathers people," they are reluctant to part with money. According to professional surveys, 21% of bosses refuse to honor promises or find excuses not to pay, 36% delay or reduce payments, and only 17% truly fulfill agreements. If the boss is dishonest, core team members leaving is natural.
Internal conflicts: Conflicts arise from prolonged interaction. If not resolved timely, they accumulate and eventually erupt. This is a major reason for excellent core members leaving. Companies, especially bosses, must address this and coordinate effectively, as conflicts affect not only individuals but also company operations.
No future prospects: Every employee wants a good career path. According to Maslow's hierarchy of needs, people have physiological, safety, belonging, esteem, and self-actualization needs. We should provide clear development trajectories and let employees see their future. Vague visions and unrealistic slogans are ineffective.
Personal reasons: Marriage, childbirth, proximity to home, or personal capability bottlenecks can also lead to resignations.
III. Why Can't Bosses Guess the True Thoughts of Core Team Members?
In Xiao Wang's case, although Mr. Chen tried to retain him, Xiao Wang refused citing personal reasons. However, a close colleague revealed that Xiao Wang left due to low salary and unsatisfactory commission rates. Why did Xiao Wang not tell the boss the real reason?
Our in-depth research found that this situation is not unique to AB Company. Many companies face a lack of open communication between bosses and employees. Main reasons include:
Fear of negative consequences: Xiao Wang wanted to discuss salary but hesitated because he saw colleagues who asked for raises got more work and pressure. He feared that after asking, the boss might eventually let him go.
Not wanting to affect future relations: Since Xiao Wang had already decided to leave, he didn't want to damage his relationship with the boss, so he kept the real reason to himself.
Different perspectives: Bosses and employees think differently. Employees believe that if they worked hard all year without lateness or early departure, they deserve a raise. Bosses think, "Your skills haven't improved, and you haven't taken on more work. How can I raise your salary? The industry pressure is increasing, and I don't see you working harder. If you were truly capable, wouldn't I raise your salary?" Core employees think, "I'm a core member and contributed a lot this year. Why no raise?" Bosses think, "When you joined, you knew nothing. I trained you step by step. What about the cost of that training?" And so on. There are too many differences in thinking.
IV. How Can Bosses Understand the True Thoughts of Core Team Members?
If Mr. Chen had known Xiao Wang's thoughts and addressed them, AB Company wouldn't have faced this outcome. Therefore, bosses must understand the real thoughts of their core team members to solve problems effectively. Here are some methods:
Set up an anonymous mailbox: Encourage employees to provide feedback directly to the boss. This allows the boss to learn the truth promptly and gives employees peace of mind.
Establish a reward culture: Reward employees who offer good suggestions to foster a culture of feedback. Rewards need not be cash but must exist to motivate employees.
Regular emotional communication: Find a pleasant environment and have deep conversations with employees regularly. Many small company bosses often gather with employees for drinks, and in such moments, employees may open up. However, maintain a certain distance to avoid turning the relationship into purely brotherhood rather than superior-subordinate.
V. How to Prevent Core Team Members from Leaving After the Spring Festival?
Research shows that a 3% increase in employee satisfaction leads to a 5% increase in customer satisfaction and a 25-85% increase in profits. Companies with 80% employee satisfaction see profit growth about 20% higher than industry peers. Thus, to care for your customers, you must first care for your core team members. How to increase satisfaction and prevent resignations?
Improve corporate culture: A poor corporate culture cannot be compensated by good salary and benefits in the long run. When a company is small, it relies on the boss's charisma; during growth, on team management; but for long-term development, it must rely on corporate culture. Establish a positive, upward culture that benefits employees, making them feel the company is their second home.
Improve incentive systems: Provide appropriate incentives for core team members based on their contributions and needs. For those with smaller contributions, use spiritual or material rewards.
Allow employees to voice concerns and get solutions: Employees dissatisfied with the status quo should have channels to communicate and receive reasonable solutions to their problems.
Show short-term benefits and long-term vision: Don't just paint a rosy picture; show employees the tangible benefits they'll gain from their efforts in the short term. Make them believe that following the boss will lead to a bright future, so they'll work hard.
In summary, any method that helps employees and increases satisfaction is good. When satisfaction rises, resignations naturally decrease. We must understand the high cost of losing a core team member. Fortune magazine found that replacing a core member costs up to 1.5 times their annual salary, and even more for managers. There are also costs from decreased morale and performance before departure, recruitment, training, and the risk of them taking skills and clients to competitors.
Therefore, for a company to thrive, employee turnover must not be underestimated, especially after the Spring Festival. Companies should pay close attention to this issue.
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