As part of the Employers Association of America’s (EAA) 2025 National Business Trends Survey, which ASE in Troy took part in, more companies and organizations expect the U.S. economy will improve next year.
The survey, which provides data on business climate, workforce readiness, and economic trends, also highlighted critical talent-related challenges businesses are facing.
Overall, 78 percent of companies and 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 — privately-held companies (69 percent), nonprofits (23 percent), publicly traded corporations (4 percent), and public sector government (4 percent) — reports a 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
The 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 percent) and retain (31 percent). The top strategies to address retention challenges are:
- Adjusting pay ranges upward (64 percent)
- Focusing on existing staff receiving additional training and development (60 percent)
- Focusing on existing staff retention in jobs where recruitment is difficult (51 percent)
Executives also 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 percent)
- Good work-life balance (75 percent)
- Flexibility in work hours (55 percent)
- Competitive and robust health benefits (36 percent)
- Opportunities for advancement (33 percent)
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 percent)
- Talent acquisition (47 percent)
- Developing future leaders (42 percent)
- Talent retention (41 percent)
- Ability to pay competitive wages and salaries (38 percent)
Despite cybersecurity being the top long-term challenge, 23 percent of businesses plan to invest in data security in 2025, a disconnect warranting attention.
Among Michigan survey respondents, the challenges faced by employers closely mirror national trends, with talent acquisition and retention standing out as key short- and long-term concerns. The primary obstacle to sourcing talent continues to be a shortage of qualified candidates.
A majority of Michigan employers anticipate economic stability over the next 12 months, with 49 percent expecting conditions to remain unchanged and 39 percent 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,” says Mary Corrado, president and CEO of ASE.
She notes ASE supports “local businesses with tailored training and HR consulting services designed to address these critical needs” such as “equipping teams with the skills to close talent gaps, developing strategies to retain top performers, or aligning pay structures with market expectations.”
For a copy of the full report of the 2025 National Business Trends Survey, contact McKenna Arnold at marnold@cascadeemployers.com | 503-585-4320
EAA consists of 23 regional employer associations serving 35,000 companies and more than 6 million employees. For more information visit eaahub.org.
For more information about ASE, visit aseonline.org.
 2025 National Business Trends Survey, which ASE in Troy took part in, more companies and organizations expect the U.S. economy will improve next year.){kind=link}