MILWAUKEE (PRWEB) November 14, 2019
Employer Associations of America (EAA) has just released its 2020 National Business Trends Survey. This national survey shares information on what executives are doing to address the changing business climate, and executives surveyed this year indicate that they are feeling a little less optimistic. The majority of respondents (52 percent) felt the economy in the next 12 months would stay the same, with only 12 percent feeling the economy would improve, and 36 percent feeling that the economy will decline.
Compared to 2019 survey results, respondents felt more confident that the economy would improve (30 percent) and only 12 percent felt there would be a decline. The numbers from the last year’s survey have flipped in these two areas.
“Given the feelings about the economy in the next 12 months, it seems that organizations are taking a more cautious approach to 2020,” said EAA Board of Directors Chair Mary E. Corrado. “Despite reduced confidence in the economy, 49 percent of organizations surveyed still expect a slight increase in revenue for the coming year. The talent shortage will remain a key factor in 2020. Employers will need to implement innovative talent acquisition and retention strategies to meet their business results.”
When asked on the survey what are the top challenges to their business in 2020, executives indicated:
- Talent acquisition
- Talent retention
- Ability to pay competitive wage/salaries
- Competition in general
- Ability to pay for benefit costs
A number of the Business Trends survey questions focused on hiring and staffing practices. The amount of permanent staff planned to be hired in 2020 is down slightly to 47 percent as compared to 2019, in which 54 percent planned to hire permanent employees. Respondents did indicate 65 percent were hiring in part due to newly created jobs. The majority (83 percent) seem to be replacing employees due in part to voluntary turnover. The increase in voluntary turnover makes talent acquisition more difficult and employers will need to offer more competitive wages and be more strategic when marketing for positions.
In moving forward with their hiring practices, organizations said the top five most important factors prospective employees are looking for are fairly similar to last year’s results:
Top 5 most important factors: 2020
- 1. Competitive Pay (81%)
- 2. Good Work/Life Balance (69%)
- 3. Opportunities for Advancement (56%)
- 4. Flexibility in Work Hours (56%)
- 5. Competitive Health Benefits (48%)
The top three reasons why it has become more difficult to hire employees in their industries are:
- 1. Lack of qualified candidates (66%)
- 2. Market competition/high demand (48%)
- 3. Candidates want more pay than we can/will offer (43%)
With the national spotlight on pay equity, a few additional responses were added to the question, “How is your organization minimizing risk and ensuring compliance with federal, state, and local laws?” The top three responses include:
- 1. Conducting internal pay audits (38%)
- 2. Establishing/updating a formal compensation structure (35%)
- 3. Conducting external compensation analyses to compare internal positions with the external market (29%)
The EAA is a not-for-profit national association that provides this annual survey to business executives offering insights and trends for business outlooks, business investment plans, staffing levels, hiring plans, job creations, pay strategies and business challenges. The 2020 survey included 1,093 participating organizations throughout the U.S. For a copy of the full report, contact McKenna Arnold from Cascade Employers Association at 503-585-4320.
About Employer Associations of America (EAA)
EAA consists of 32 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.