2021 National Business Trends Now Available – Executives Expect Improving Outlook for 2021

The Employers Association of America (EAA) has just released its 2021 National Business Trends Survey. This national survey, run by Cascade Employers Association, shares information on what executives are doing to address the changing business climate, whether that is due to COVID-19, regulatory impacts, social movements, the economy, etc.

Nationally

When executives were asked if the overall U.S. economy in the next 12 months will “improve, stay the same, or decline,” the majority (44 percent) think it will improve, as opposed to last year with only 12 percent planning that the economy would improve. This year, 33 percent think it will stay the same (last year 52 percent expected the economy to stay the same). Only 24 percent think it will decline (compared to 36 percent thinking it would decline in 2020). 

“COVID certainly has had a significant impact and perhaps many are feeling that the economy can only get better moving forward into 2021,” said EAA Board of Directors Chair Thoran Towler. “In fact, fueling that optimism, 57 percent of executives project slight to significant increases in sales/revenue. American businesses are showing their resilience and readiness to tackle today’s challenges and come out stronger than ever before.” 

An additional 11 questions were added to this year’s survey regarding COVID-19’s impact on business, addressing employee safety, stay at home/social distancing, and more. When asked how concerned respondents are regarding COVID-19 and its impact on business continuity (e.g. supply chain, financial implications, temporary shutdowns), 52 percent indicated that they are “extremely to moderately concerned.”

Following are the top five measures that executives say they have been or are planning to continue to implement in 2021 to address COVID-19:

1. Deep clean/disinfect work areas on a regular basis (72%)
2. Enforce plans/policies regarding employees who become ill or exhibit COVID-19 symptoms while at work (70%)
3. Communicate frequently to employees about self-screening protocols (55%)
4. Increase signage regarding COVID-19 prevention protocols (52%)
5. Enforce plans/policies to accommodate employees who need to remain home due to underlying health issues (50%)

Similar to last year’s survey responses, the top three “serious” challenges for business executives include:

1. Talent acquisition
2. Talent retention
3. Ability to pay competitive wages

In addition, “Ability to pay for benefit costs” and “Cost of regulatory compliance” rounded out the overall top five business challenges facing 2021.

According to 2021 survey responses, following are the top measures that executives say they have been or are planning to continue to implement in 2021 to strengthen business results:

1. Invest in technology (47%)
2. Invest in equipment (41%)
3. Increase flexible work arrangements (39%)
4. Increase recruiting emphasis (26%)
5. Use data analytics to improve business strategy (21%)

In Oregon

In addition, the EAA 2021 National Business Trends Survey breaks results out on a local level as well. In Oregon, 88 percent of respondents indicated they are extremely to moderately concerned about COVID-19 and its impact on human resources (e.g. policies, remote work, employee absences). When asked about COVID-19 related measures organizations were planning to take in 2021, 71 percent will be enforcing plans/policies that address employees who become ill or exhibit COVID-19 symptoms while at work; 59 percent will create and maintain a COVID-19 and/or pandemic task force or committee to monitor, plan, and implement organization strategies; and 57 percent will be increasing signage regarding COVID-19 prevention protocols. 

This survey is co-sponsored on behalf of the EAA by Cascade Employers Association, an Oregon EAA member. The EAA is a nonprofit 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 creation, pay strategies and business challenges.

The 2021 survey saw an increase in participating organizations, up nearly 400 from last year with 1,484 participating organizations throughout the U.S. For a copy of the full report, contact McKenna Arnold at marnold@cascadeemployers.com.