KING OF PRUSSIA, PA (December 8, 2022) –– While the current economic outlook may have business leaders proceeding with caution, according to the 2023 National Business Trends Survey from the Employer Associations of America (EAA), business is looking up with 59 percent of respondents expecting some type of increase in sales/revenue for 2023 (11% expect a significant increase and 48% expect a slight increase).
“The economy may be down, but business is good. And because business is good, we are seeing an increase in hiring. Those are all positives that we should be acknowledging as business leaders,” said Kevin Robins and CEO of MidAtlantic Employers’ Association (MEA). “We still have many challenges and uncertainties, but we are seeing business improvements worth noting.”
The Greatest Challenges for MidAtlantic Employers
In the region served by MEA, executives identified the three greatest challenges to their business as:
- Talent acquisition
- Cost of materials
- Talent retention
The Greatest Challenges for Employers Nationally
Nationally, executives identified the following as their “serious” long-term challenges for their business (short-term = within the next year and long-term = within the next five years):
| Short-Term % of Responses | Long-Term % of Responses | |
| Inflation | 58% | 51% |
| Talent Acquisition | 58% | 50% |
| Talent Retention | 48% | 45% |
| Ability to Pay Competitive Wages/Salaries | 37% | 37% |
| Cost of Materials | 39% | 36% |
Despite the cautious economic outlooks, executives still anticipate high hiring rates. In MEA’s region, 31% of respondents plan to maintain 2022 staffing levels while 65% said they plan to hire permanent staff in 2023.
How to Address Recruitment Challenges in 2023
This past year, approximately 50 percent of executives reported that skilled professional staff (non-manager) positions are the most challenging when it comes to recruitment. To address recruitment challenges, the top three strategies survey respondents indicated that they have implemented are as follows:
- Increasing starting salaries (75%)
- Adjusting pay ranges upward (57%)
- Using temporary agencies, staffing agencies, or external recruiters (53%)
Employee Retention Strategies for 2023
Thirty-five percent of respondents reported that skilled production workers and skilled professional staff (non-manager) are the most challenging job groups to retain. With retention being such a critical factor, the top strategies executives reported using include:
- Adjusting pay ranges (78%)
- Providing additional training/development of existing staff (60%)
- Focusing on existing staff retention in jobs where recruitment is difficult (58%)
Executives were asked what they thought are the most important factors prospective employees are looking for. The top six responses in the 2023 survey include:
- Competitive pay (86%)
- Good work/life balance (76%)
- Flexibility in work hours (62%)
- Vacation/paid time off (36%)
- Competitive/robust health benefits (33%)
- Recognition and reward for good performance (31%)
Combating Rising Inflation in the New Year
Inflation was also taken into consideration in this year’s survey. For both 2022 and 2023, organizations indicated that increased starting rates are the top pay adjustment organizations have made or will make to account for higher wage demands due to inflation. Other actions employers will take in 2023 to address rising inflation include:
- Employee referral incentives (45%)
- Adding features to employee benefits (23%)
- Offering remote work to reduce commuter expenses (21%)
Business Implementation Plans for 2022 and 2023
The survey also asked what the top measures are that executives have been or are planning to continue to implement in 2022 and 2023 to strengthen business results. The top five are listed below (by top 2023 responses):
| 2022 % of Responses | 2023 % of Responses | |
| Invest in Technology | 38% | 45% |
| Invest in Equipment | 38% | 43% |
| Increase Recruiting Emphasis | 35% | 36% |
| Implement Training Budget | 14% | 24% |
| Implement Formal Employee Engagement Programs | 16% | 23% |
On a regional level, 72% of executives said it has become more difficult to hire employees within their industries due to lack of qualified candidates (77%), market demand (63%) and candidates seeking more pay than they can offer (59%). Kevin Robins commented, “It is more important than ever for employers to keep current in their compensation data and recruiting strategies to compete for the talent they need. MEA supports its Members on both fronts.”
The EAA, a nonprofit national employer association, provides the National Business Trends as an annual survey to share information on what 1,167 organizations and executives did in 2022 and what they are planning to do for 2023 regarding the changing business climate and workplace trends. The report covers economic, business, and HR topics.
For a copy of the full report of the 2023 National Business Trends Survey, please email mea@meainfo.org. MEA Members may download a copy of the report in the Member Portal.
About Employer Associations of America (EAA)
EAA consists of 27 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. Learn more about the EAA.
About MidAtlantic Employers’ Association (MEA)
After 120 years of solving HR headaches, nothing surprises us anymore. As a non-profit membership organization, MEA supports over 600 of the region’s leading businesses with comprehensive HR resources including compliance, outsourcing, training, talent acquisition, and a national network of partner associations. Learn more about MEA.
