Why Do So Many Companies Hire in January?
Posted December 31st, 2019
After the new year, companies across the country launch new hiring efforts to find top talent. So many dive into recruitment efforts during the month of January, that most job seekers would assume that it isn’t a coincidence. However, while that is certainly the case, not all professionals know why January is such a great time to find a job.
There are several reasons why so many companies hire during the first month of the year. Here’s a look at some of the most common ones.
Budget Refreshes
When a business designates a specific amount of money to a department or personnel costs, that cash infusion usually has to last from January through December. That means, once the new year begins, that line item functionally resets or is updated. It’s at its peak funding level on January 1.
With the hiring budget refreshing, companies can seek out the talent they need while their funding supports it. As a result, January is a popular time to recruit and fill vacancies.
New Forecasts
Like budgets, many companies produce new sales forecasts at the beginning of the year. It outlines what they expect to bring in over the next 12 months, and is often used to anticipate their personnel-related needs.
If a business doesn’t believe they have enough employees to support upcoming demand for the next year, they work to hire quickly. That way, they can align their capabilities with the projections, ensuring they can meet demand.
Recent Reviews
Many managers conduct employee reviews in December. As a result, they often review the overall strength of their team and identify skill gaps they need to address. In some cases, vacancies may be created if a worker’s review is particularly poor, creating an opening that might need to be filled quickly.
Essentially, by January, managers have a clearer understanding of their hiring needs. If there is a need, they’ll usually start recruitment efforts as soon as possible.
Holiday Holdovers
During the holiday season, some companies avoid hiring not because they don’t need new employees, but because the period is too hectic. Current team members might be away on vacation, leaving departments short-staffed and focused on critical duties. Company leaders might not be available to approve recruitment requests or, for businesses with a peak season during the holidays, might be concentrating on productivity and meeting demand.
Once the holiday season ends, operations begin to head back toward normal. At that point, they have the time and energy to dedicate to hiring, increasing the odds that they’ll work to fill vacancies that may have arisen over the last month or two.
Ultimately, January is a popular hiring period, making it a great time to look for a new position. If you want to land a job at the start of the new year, the staff at Bayside Solutions can help. Contact us to discuss your ideal position with one of our recruiters today and see how our service can make finding the right opportunity as easy as possible.
