1. The February Job-Hopping Wave: What Should Companies Truly Be Afraid Of?
Every February, one of the most common concerns voiced by business owners is: “After the Lunar New Year, people become restless. I’m afraid we won’t be able to retain our talent.”However, from a corporate governance perspective, this issue deserves a different interpretation. February is not a “talent retention month,” but rather a stress test of institutional credibility.
Employees rarely leave because a single benefit is insufficient. More often, they leave because they no longer believe that their efforts will lead to a predictable and fair return within the organization.
Once employees perceive the company as a high-uncertainty environment, their rational response is to reduce risk: updating their resumes, comparing external opportunities, and making a move while salary negotiations are still possible.
This is why many companies find that even after raising salaries or enhancing benefits, they still struggle to stabilize employee sentiment. The issue lies not in compensation, but in whether the system itself is trustworthy.
Note: Employee turnover in February does not occur suddenly. It is the visible outcome of long-accumulated institutional uncertainty.
Image source: FREEPIK
2. Employees Stay Not Because They Are Happy, but Because the Future Is Predictable
From practical observation, employees often choose to stay not because they feel happy every day, but because they understand how things are likely to unfold and trust that the company will operate according to its rules.Predictability usually comes from four key dimensions:
- Clear HR systems (well-defined rules for onboarding, probation, promotion, salary adjustments, bonuses, and internal transfers)
- Understandable performance logic (employees know which behaviors are recognized and which outcomes are evaluated)
- A governance culture where management follows through on its words (commitments are honored and communication is consistent)
- Consistent standards for handling exceptions (decisions are not based on personal relationships or momentary emotions)
Once employees witness even a single instance of rules being changed without clear justification, trust begins to erode. And once trust is damaged, it is extremely difficult to restore—no matter how many benefits are added.
Note: Talent retention is not about giving more, but about ensuring that employees believe the rules will remain stable.
Image source: FREEPIK
3. Reframing “Happy Companies” in Governance Terms: Stability Matters More Than Activities
The market loves to talk about “happy companies.” However, what truly deserves attention is whether the governance structure behind that happiness actually holds.At the foundation of a happy company’s governance is not warmth, but stability. For adults, a sense of happiness often comes from being able to plan their lives, predict their work trajectory, and receive fair returns for their efforts—not from being emotionally comforted by the company.
Organizations that rely solely on emotion-driven culture initiatives tend to falter when economic conditions worsen or cost pressures rise. In contrast, when governance structures are solid, employees are more willing to weather uncertainty together with the company, because they trust that decisions will be fair and rules will be followed.
Stability, in this context, means:
- Clear rules (systems are documented and explained consistently)
- Consistent decision-making (similar cases are handled in similar ways, without arbitrariness)
- Commitments that are honored (promises are fulfilled, and explanations are given when they cannot be)
- Explainable exceptions (exceptions are principle-based, not privileges)
- Employees understand why they are treated a certain way (transparency reduces suspicion)
Note: Benefits can add points, but unstable systems result in immediate and significant deductions.
4. Making Trust “Replicable” Through Four Governance Designs
At this point in February, companies are advised to shift their focus back to governance design rather than relying solely on short-term fixes.Short-term measures—such as salary increases, bonus adjustments, or retention incentives—may buy time, but they do not buy trust. Governance design is the only sustainable solution.
- Consistency of Systems
Systems can be simple, but they must not be inconsistent. Organizations should first align the areas most likely to trigger distrust: definitions of performance ratings, bases for salary adjustments and bonuses, promotion criteria, and probation pass standards. If management wishes to retain flexibility, it must simultaneously establish clear principles for applying flexibility and maintain records of exceptions. Otherwise, flexibility quickly turns into arbitrariness. - Traceable Decision-Making
Decisions on salary adjustments, promotions, and bonuses should not rely solely on individual discretion.At a minimum, there should be clear bases, records, and approval processes. These bases do not need to be complex, but they must be explainable by management and understandable to employees. Examples include bonus ranges corresponding to performance results, required competencies for promotion, and clarity on who approves decisions and when they take effect. The purpose of traceability is to ensure that systems can be reviewed and evaluated, rather than leaving employees with the impression that outcomes depend entirely on managerial preference. - Verifiable Communication
Turn key indicators—such as turnover rates, risks related to critical positions, grievance trends, and occupational health and safety metrics—into regular items for management review, thereby establishing a governance rhythm. Communication is not a one-off town hall meeting, but a regular, fact-based review process. When management discusses workforce issues using data and can clearly explain decision rationales, organizational culture begins to stabilize. - Employee Assistance Programs (EAP): Integrating Stress and Burnout into Governance Management
Companies should view EAPs not as a welfare slogan, but as a governance tool. The role of an EAP is to provide a structured and confidential support channel, allowing employees to access help when facing high pressure, workplace conflict, maladjustment, or accumulated family and financial stress. By offering a usable outlet, EAPs help prevent these issues from ultimately manifesting as unplanned resignations, long-term absenteeism, grievances, or occupational health and safety incidents.
For EAPs to function as part of governance, the key question is not whether a program exists, but whether it can be managed:
- Clearly defined confidentiality and third-party mechanisms — ensuring employees feel safe using the service, and managers do not perceive it as a surveillance tool
- Well-defined referral processes — clarifying how managers may suggest support, how HR facilitates access, and how employees voluntarily engage
- Anonymous, aggregated indicators incorporated into management reporting — such as utilization rates, trends in issue categories, and referral volumes, without touching personal data
Note: Trust is not built through a single conversation, but through systems that are repeatedly tested and validated.
5. The Role of Accounting Firms in “Labor × Governance”
During the February job-hopping wave, the true value accounting firms can provide lies not in payroll processing, but in the following three areas.- Helping organizations identify structural risks behind personnel costs
Many companies focus solely on salary expenses, while overlooking the hidden costs caused by employee turnover, such as delivery delays, rework, training costs, and the diversion of management time. By structuring and quantifying these costs, management can better understand where investments will generate the greatest impact. - Assessing whether system design creates long-term internal control gaps
Misalignment between performance evaluations and compensation rules, unclear authorization, and undocumented exception handling can, over time, lead to internal disputes and grievance risks. Governance gaps rarely erupt overnight. Instead, they gradually erode organizational efficiency and trust. - Translating “people issues” into financial and governance language decision-makers can understand
Management decisions require comparable, traceable indicators and scenario analysis. Accounting firms can help convert labor and cultural issues into manageable risk and cost models, enabling governance to move from slogans to actionable management practices.
When companies begin to address labor issues through a governance lens, talent retention no longer becomes a short-term fix, but a long-term strategy. EAPs are not about “emotional support”; they are tools to reduce unplanned turnover and absenteeism risks, and to provide institutional outlets for stress—preventing issues from ultimately manifesting as resignations or grievances.
Note: True governance is not about controlling people, but about building systems that are worthy of trust.
If you are currently facing post-holiday staff turnover, insufficient backup for key positions, or increasing personnel cost pressures, Yaofeng CPA Firm offers the “HR Risk and ESG Governance Assessment Toolkit for the Job-Hopping Wave” for download. You may begin by using the toolkit to conduct an initial assessment, and then plan the sequencing of system enhancements and governance improvements based on the assessment results.
Resource Download
➡️ HR Risk and ESG Governance Assessment Toolkit for the Job-Hopping Wave
References
- IFRS / ISSB (IFRS S1 and S2: Sustainability-related disclosures and risk frameworks),
- GRI Standards (employment, occupational health and safety, diversity and equality-related standards)
- ILO (International Labour Organization: labour rights and occupational safety and health frameworks)
- OECD (corporate governance and human capital research)
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