Great Lakes Wire

The Employers Association of America (EAA) has released its 2025 National Business Trends Survey, indicating increased optimism in the U.S. economy despite significant talent-related challenges. According to the survey, 78% of organizations expect economic conditions to improve or remain unchanged, up from 67% in the previous year.

The survey gathered input from over 1,000 organizations across various industries nationwide and highlights a rise in confidence about the economic outlook for the next year. However, it also identifies key challenges businesses anticipate facing in 2025: talent acquisition, talent retention, and the ability to offer competitive wages.

Executives noted that recruiting and retaining professional staff (non-managerial positions) remains challenging, with 45% finding recruitment difficult and 31% struggling with retention. Strategies being employed to address these issues include adjusting pay ranges upward (64%), focusing on training and development for existing staff (60%), and concentrating on retention in hard-to-recruit areas (51%).

When asked about what prospective employees prioritize most, executives identified competitive pay (83%), good work-life balance (75%), flexible work hours (55%), robust health benefits (36%), and advancement opportunities (33%) as top factors. Notably, vacation/paid time off did not make the top five for the first time in recent years.

Long-term challenges identified by executives include cybersecurity (54%), talent acquisition (47%), developing future leaders (42%), talent retention (41%), and paying competitive wages and salaries (38%). Despite cybersecurity being a major concern, only 23% of businesses plan to invest in data security next year.

In Michigan specifically, a majority of employers foresee economic stability over the coming year, with nearly half expecting conditions to remain unchanged while others predict slight sales and revenue increases. The state’s employers face similar challenges as those nationally regarding talent acquisition and retention due to a shortage of qualified candidates.

Mary Corrado, President & CEO of ASE, commented on these issues: “Michigan employers face significant challenges in talent acquisition, retention, and competitive compensation. At ASE, we support local businesses with tailored training and HR consulting services designed to address these critical needs.”

The EAA's annual survey offers insights into business climate trends that can aid government agencies, policymakers, and employers through comprehensive data collection. This information supports data-driven decision-making processes by providing national benchmarks and tracking economic changes over time.

For further details or access to the full report of the 2025 National Business Trends Survey, interested parties are encouraged to contact McKenna Arnold at marnold@cascadeemployers.com or call 503-585-4320.