As we welcome a new year, we welcome new opportunities, but for many, it also means news challenges.
We’re all familiar with the “January Blues”, and whilst it might sound trivial, it’s a serious issue for many—particularly those experiencing Seasonal Affective Disorder (SAD).
Because of the above, morale is dampened, productivity decreases, and coupled with a chance to reflect, employees may seek alternative employment.
It's crucial to ensure your staff stay engaged. This can be done by setting new goals and incentives for the new year.
Beating the blues
Switching from a festive break to work can be a tough transition for your workforce. Add gloomy weather to the mix, and it’s no surprise to see a spike in Seasonal Affective Disorder (SAD)—a type of depression driven by reduced daylight.
When employee morale is low, absenteeism and presenteeism begins to creep up, which is detrimental for your company’s productivity. Another cause for stress throughout January is financial concerns. In fact, around 41% of employees said money worries were a prime source of stress.
Providing your employees with access to an employee assistance programme provides support for financial stress among many other issues impeding workers’ mental health and job performance.
Reflection, resignation and retention
Whilst away from work, it’s an opportunity for workers to assess their options, and many enter the new year with wanting a new role. Typically, job applications jump up by 22% above the monthly average in January.
What are the main catalysts for resignations in the new year? A lack of career growth is cited as the main reason, along with the lack of flexible working and feelings of being undervalued.
A trend we expect to become prominent in 2026 is “job hugging”. This is born from a stagnant job market, where staff choose to stay despite being unhappy. Whilst this keeps employee turnover rates low, it can lead to other issues like decreased productivity and “resenteeism”.
Retaining staff is difficult, especially in January, so it’s key to ensure they feel valued and have realistic targets to remain motivated.
Incentivise new goals
To help your staff get over the post-holiday slumps, offering incentives, career growth, and achievable objectives keeps employees engaged and mitigates resignations.
Regular reviews in place of annual ones gives workers actionable insights to continually improve. Rewarding high performance increases employee satisfaction and improves loyalty.
Also, not removing, or providing flexible working, is another in way to tackle turnover rates.
Peninsula has your back in 2026 and beyond
January can be a tricky month for businesses, but with our decades of experience, we can help you with all your HR needs.
Partnering with Peninsula brings you 24/7 HR advice, unlimited documentation support, the latest HR software, and much more.
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