And How to Backfill Quickly When Staff Leave

Every year, January earns a reputation among business owners and HR teams as “resignation month.” It’s the time when many employees return from the summer break with fresh perspectives; and in some cases, a decision to move on. For small and medium-sized businesses in Australia, this seasonal pattern can create workforce challenges if you’re not prepared.

Why Resignations Spike in January

Several factors contribute to departures in the first month of the year:

Mindset Shift After the Holidays
The Christmas and New Year break gives people a chance to reflect on their career, life goals and work-life balance. What might have felt bearable in December suddenly feels untenable when they come back to work in January.

Decision Time for Career Moves
Many job seekers treat the holidays as a period to update resumes, explore opportunities, or simply rest before making a change. As job advertisements typically rise in December and January - particularly in industries like retail, hospitality and office support - interest in new roles often peaks at this time. This has been highlighted in employment market data showing January job ad volumes rise in key sectors such as Retail & Consumer Products and Hospitality & Tourism.

Seasonal Slowdowns Can Mask Turnover
In Australia, many businesses operate on skeleton staff or close entirely during late December and early January, leading to a temporary drop in productivity and visibility of staffing issues. Once the usual rhythm resumes, staffing gaps become very obvious; and resignations often get recorded in data once workers formally return.

Industries With Higher Movement

Understanding where turnover happens most helps you plan better:

ABS job mobility data (which tracks people changing jobs over a 12-month period) shows that movement isn’t limited to one sector. The industries with the largest shares of people changing employers include:

Health Care & Social Assistance
Accommodation & Food Services
Retail Trade
Construction

This aligns with what many small business owners see in practice: high turnover in consumer-facing and gig-style sectors like hospitality and retail, but also in health and construction. These patterns are useful to know because if your business operates in these areas, you’re statistically more likely to feel the impact of seasonal resignations.

The Impact of January Turnover

When someone leaves suddenly, especially in January it can affect your business in several ways:

Workflows get interrupted
Teams operate with gaps while you recruit
Remaining staff juggle extra tasks
Projects get delayed

For small and medium businesses with lean structures, these impacts can compound quickly. That’s why preparation is essential.

How Business Owners Can Backfill Faster

Backfilling departures isn’t just about speed, it’s about being strategic. Here are practical actions you can take:

Keep Role Descriptions Updated
Rather than writing job ads when someone leaves, keep current position descriptions ready. This saves time and ensures accuracy when you need to recruit.

Know Your Must-Haves vs Nice-To-Haves
A clear understanding of which skills and qualities are essential helps narrow candidates faster and avoids unnecessary delays in screening.

Build a Pipeline Before You Need It
Some of the best hires come from proactive relationships - people you’ve spoken to, engaged with or met before you actually need them. Consider keeping a short list of potential candidates so you can move quickly.

Act Fast Without Rushing
When you find the right person, don’t let slow internal processes cost you the hire. Candidates, especially in January, may have multiple offers or opportunities.

Preparation Beats Panic

January resignations don’t have to throw you off track. With a bit of forward planning, you can approach seasonal turnover not as a crisis, but as a predictable part of business rhythm. Taking steps now, before notice lands on your desk can save time, disruptions and most importantly … stress.

Struggling with Resignation month?

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Why January Is “Resignation Month”