New year goodbyes? How to negotiate better during resignation season

6 January 2025

Every new year, many employees take stock of their careers and personal goals, making this a prime time for reflection—and for resignations, especially after the post-bonus season and the performance appraisal cycle.

However, instead of bracing for more goodbyes, you can use this resignation season to your advantage for refining strategies to keep top talent from walking out the door. This is also the perfect moment to address underlying issues that may be driving your people away in the first place, whether it's burnout, lack of growth opportunities, or unsatisfactory compensation, among other things.

In this blog, we’ll dive into how you can better manage resignation season and negotiate effectively with employees.

Reevaluate your retention strategy

The beginning of the year offers an excellent opportunity to reflect and adjust. If employees are resigning, it’s often a sign that something isn’t working.

Better career development: Some employees may resign because they feel stuck in their roles with no clear growth path. Offering clear career advancement opportunities or a well-defined development plan could convince them to stay.
Adjust compensation packages: If employees are leaving for better pay, it could be time to benchmark salaries and adjust compensation to stay competitive in the market.

Be ready for “exit negotiations”

Once an employee has decided to resign, there is often an opportunity to negotiate with them, especially if they are still on the fence about leaving.

Understand the reasons for resignation: Is it burnout? A lack of career advancement? Better pay elsewhere? Knowing the core issue allows you to offer tailored solutions better.
Make counteroffers strategically: If you decide to counteroffer, be realistic. Sometimes, it’s not just about increasing salaries to match the competitor's offer. Instead, look at the holistic picture from career growth to job satisfaction, to work-life balance.
Reassess workload and expectations: If the employee is leaving due to stress or burnout, offer adjustments to their workload or responsibilities as part of the negotiation.

Offer flexible solutions for work-life balance

Recent research from Gallup shows that flexibility boosts retention, with 60% of employees staying longer at companies that offer flexible work options. Moreover, the same study found that 93% of employees value work-life balance as much as salary increases. Consider the following flexible options when negotiating with employees who might leave due to work-life balance concerns.

Remote work options: Offering hybrid or fully remote work can be a game changer for those considering a move.
Flexible hours: If your people are struggling with rigid schedules, offering flexibility in start and end times can make a significant difference in their decision to stay.
Paid time-off (PTO) policies: Consider adding special PTOs beyond the government-mandated ones to align with what your employees need to prevent burnout and recharge.

Competitive compensation and benefits are a must

Data from the Harvard Business Review confirms a known fact - inadequate compensation is one of the key reasons for resignation, and it’s not just monetary. If your compensation packages are not competitive within the industry, your people will be more inclined to seek better offers.

Benchmark regularly: Compare your salaries and benefits packages to those of other companies in your industry to ensure you are offering a competitive deal.
Non-monetary perks: Beyond base salary, consider offering wellness programs, career development funds, and other perks that contribute to overall satisfaction.
Incentives and bonuses: Consider offering retention bonuses or performance-based incentives.

Pro-tip: Offer recurring allowances that improve your people’s quality of life outside of the workplace. With Pluxee Gift codes, you can customize allowances to specific categories that can be enjoyed at thousands of our partner merchants nationwide.

For instance, our digital vouchers can be redeemed at health & wellness establishments (Anytime Fitness, Decathlon, Sports Central, Chris Sports), optical stores (EO, Vision Express, Ideal, George Optical), beauty treatments or skincare (Flawless, Bench Fix, David’s, Skin Manila, Innisfree, Body Shop), and top groceries (SM Supermarkets, Robinsons, Shopwise, Waltermart).

Create a culture of recognition and engagement

Employees are more likely to stay when they feel valued and engaged. A lack of recognition can drive employees to seek validation elsewhere and a strong culture of recognition can help mitigate this.

Implement recognition programs: Regularly celebrate employee achievements, whether through formal awards, informal shout-outs, or team-wide recognition.
Foster a positive work culture: Promote an inclusive, supportive work environment where employees feel connected to the company’s mission and values.
Offer growth opportunities: Demonstrate a commitment to employees’ professional development by offering training, mentorship, and leadership opportunities.

Pro-tip: Rewards are fleeting but recognition is eternal. Case in point, an employee will always remember the awards they got at a team building or a sincere shoutout they received from their boss. Invest in a Rewards and Recognition platform like Pluxee’s to help drive employee engagement and retention.

Prepare for smooth exits

While you should aim to negotiate and retain as many employees as possible, turnover is inevitable. Having a smooth exit strategy in place will minimize the impact of resignations on your organization.

Knowledge transfer: Ensure that departing employees have ample time to train or mentor their replacements to maintain continuity.
Exit interviews: Conduct exit interviews to understand why employees are leaving and gather insights for improving retention in the future.
Succession planning: Create clear succession plans and cross-training to ensure that critical roles can be filled quickly and with less disruption.

Be proactive: Improve communication to prevent surprises

Clear communication is often the key to preventing unexpected resignations. Many employees leave because they feel that their concerns have been unaddressed. Ensure you’re actively engaging with employees about their satisfaction levels throughout the year, rather than waiting for the ball to drop to understand what went wrong.

Regular one-on-ones and feedback loops: Consistent performance appraisals or check-in meetings allow managers to gauge employee sentiment earlier on, preventing issues from escalating to resignation.
Openness to feedback: Foster a culture where employees feel comfortable discussing their challenges, career goals, and personal needs.
Proactive relationship-building: Encourage developing strong relationships with your team members throughout the year. Bonds built on genuine trust make it easier to negotiate effectively when the time comes.

Final thoughts: Resignation season doesn’t have to mean goodbye

The new year brings with it the potential for fresh starts—but also the risk of losing valuable employees. By focusing on proactive retention strategies, communicating openly, and being ready to negotiate on key issues like compensation, career growth, and work-life balance, you can significantly reduce the impacts of this inevitable season.

A few strategic adjustments can make all the difference in how you retain top talent in 2025 and beyond.

For more information on how Pluxee can help you retain your top talent better with our customized solutions, book a free consultation here.