TROY, MI (November
25, 2024) - The Employers Association of America’s (EAA) 2025 National
Business Trends Survey reveals a wave of optimism sweeping through the U.S.
economy, while also highlighting critical talent-related challenges businesses must
address to succeed.
Organizations
indicate the optimism for the U.S. economy expressed in the previous year’s
study increased significantly. Seventy-eight percent of organizations expect
the economy will either improve or remain unchanged, up from 67 percent in
2024.
The
survey, which gathered responses from more than 1,000 organizations across
various industries nationwide, reports a notable rise in confidence regarding
the overall U.S. economy for the next 12 months.
Despite
the optimistic economic outlook, the survey identified three primary challenges
that businesses expect to face in 2025:
1.
Talent Acquisition
2.
Talent Retention
3.
Ability to Pay Competitive Wages
These
challenges underscore the ongoing importance of human capital management in the
evolving business landscape.
Executives
reported professional staff (non-manager) positions remain the most challenging
to recruit (45%) and retain (31%). The top strategies to address retention
challenges are:
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Adjusting pay ranges upward (64%)
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Focusing on existing staff receiving additional training and
development (60%)
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Focusing on existing staff retention in jobs where recruitment is
difficult (51%)
Executives
were asked what they thought are the most important factors prospective
employees are looking for. The top five responses in the 2025 survey were:
1.
Competitive pay (83%)
2.
Good work-life balance (75%)
3.
Flexibility in work hours (55%)
4.
Competitive and robust health benefits (36%)
5.
Opportunities for advancement (33%)
Vacation/
paid time off moved out of the top five for the first time in recent years.
E
xecutives identified the following “serious” long-term challenges for their business:
1.
Cybersecurity (54%)
2.
Talent Acquisition (47%)
3.
Developing Future Leaders (42%)
4.
Talent Retention (41%)
5.
Ability to pay competitive wages and salaries (38%)
Despite Cybersecurity being the top long-term challenge, only 23
percent of businesses plan to invest in data security in 2025, a disconnect
warranting attention.
A majority of Michigan employers
anticipate economic stability over the next 12 months, with 49% expecting
conditions to remain unchanged and 39% forecasting a slight increase in sales
and revenue.
The challenges faced by Michigan
employers closely align with national trends, with talent acquisition and
retention emerging as top short- and long-term concerns. The primary obstacle
to sourcing talent continues to be a shortage of qualified candidates.
Michigan employers face significant
challenges in talent acquisition, retention, and competitive compensation,”
said Mary Corrado, President & CEO of ASE. “At ASE, we support local
businesses with tailored training and HR consulting services designed to
address these critical needs. Whether it’s equipping teams with the skills to
close talent gaps, developing strategies to retain top performers, or aligning
pay structures with market expectations, ASE remains a trusted partner for
employers in our community.”
The
National Business Survey can provide critical insights for government agencies,
policymakers, and employers by offering comprehensive data on business climate,
workforce readiness, and economic trends.
By
gathering feedback, the survey enables data-driven decision-making, allows for
national benchmarking, and helps track economic changes over time.
The survey's diverse participant base, representing a wide range of industries, provides a comprehensive view of the business trends shaping the American economy. This broad perspective offers valuable insights for organizations of all sizes and sectors.
The EAA, a nonprofit national employer association, provides the
National Business Trends Survey annually, gathering insights from more than
1,000 organizations to examine what businesses did in 2024 and what they are
planning to do for 2025. The report includes:
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Business Outlook
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Business Investment Plans
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Staffing Plans
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Recruitment/Retention Challenges
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Job Creation Challenges
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Business Improvement Measures
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Pay Strategies
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Business Challenges
For
a copy of the full report of the 2025 National Business Trends Survey, contact
McKenna Arnold at marnold@cascadeemployers.com
| 503.585.4320
###
About Employer Associations of
America (EAA)
EAA consists of 23 regional employer associations serving 35,000
companies and more than six million employees. Regional employer associations
are dedicated to serving their members as trusted partners that help members
maximize the performance of their employees and their organization through
business expertise in compliance, recruitment, retention, surveys, safety,
training, and organization development. EAA’s mission is to advance a national
presence and to promote local success among members through unparalleled
collaboration, excellence, and efficiency. To learn more about the EAA, visit http://www.eaahub.org.
About ASE
ASE is employers trusted partner for Everything HR.
ASE is a non-profit, membership organization – everything we do is based on the
needs of members and to drive the success of their organizations and help
them THRIVE. ASE strengthens organizations’ HR departments by
offering member benefits and discounted services that span the entire employee
lifecycle including recruitment, development, and retention while minimizing
compliance risk. We provide our members guidance through new legislation and
workplace issues. Learn more about ASE at www.aseonline.org.
