2025 National Business Trends Survey Reveals Optimism Amid Talent Challenges
December 4, 2024
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:
- Talent Acquisition
- Talent Retention
- 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:
- Adjusting pay ranges upward (64%)
- Focusing on existing staff receiving additional training and development (60%)
- 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:
- Competitive pay (83%)
- Good work-life balance (75%)
- Flexibility in work hours (55%)
- Competitive and robust health benefits (36%)
- Opportunities for advancement (33%)
Vacation/ paid time off moved out of the top five for the first time in recent years.
Executives identified the following “serious” long-term challenges for their business:
- Cybersecurity (54%)
- Talent Acquisition (47%)
- Developing Future Leaders (42%)
- Talent Retention (41%)
- 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:
- Business Outlook
- Business Investment Plans
- Staffing Plans
- Recruitment/Retention Challenges
- Job Creation Challenges
- Business Improvement Measures
- Pay Strategies
- 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
By Heather Nezich, courtesy of SBAM-approved partner, ASE.
Click here for more News & Resources.