Cascade Employers Association,
2020 is right around the corner: see what executives predict for the 2020 year and plan smart!
The Employer Associations of America’s 2020 National Business Trends 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. Oregon executives reflect similar trends, with 50 percent predicting the economy will stay the same, 41 percent feeling that the economy will decline, and only 9 percent expecting the economy to improve.
“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 wages/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 45 percent as compared to 2019, in which 50 percent planned to hire permanent employees. Oregon Respondents did indicate 65 percent were hiring in part due to newly created jobs. The majority (87 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:
– Competitive Pay (80%)
– Good Work/Life Balance (61%)
– Flexibility in Work Hours (53%)
– Opportunities for Advancement (52%)
– Competitive Health Benefits (47%)
The top three reasons why it has become more difficult to hire employees in their industries are:
– Lack of qualified candidates (59%)
– Market competition/high demand (56%)
– Candidates want more pay than we can/will offer (44%)
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:
– Conducting internal pay audits: 49%
– Establishing/updating a formal compensation structure: 45%
– Having a formal pay equity analysis conducted: 35%
The National Business Trends Survey provides a unique insight into executives’ predictions for 2020, allowing organizations the opportunity to develop and enact business plans and actionable steps to address these predictions in the coming year. “At Cascade Employers Association, we understand the complex business environment and how that can impact your strategies and tactics in the workplace, especially when it comes to attracting, engaging and retaining top talent,” reports Jenna Reed, Vice President of HR Services and General Counsel. “Whether your organization needs support developing its compensation philosophy and structure, assessing employee engagement or consulting on your approach to talent acquisition, our exceptional team of HR professionals is here to help you.”
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, Cascade Employers Association, [email protected].
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