Despite strong optimism, employers continue to face economic challenges relating to talent recruitment, according to the Employer Associations of America’s 2017 National Business Trends Survey.

The survey found 62% of employers reported recruiting is becoming more difficult, with 31% indicating dissatisfaction with their current recruiting efforts. Additionally, 32% indicated they had hired slightly to significantly more than planned in 2016, and for 2017, the survey found 48% of employers planned to increase staffing, with talent acquisition remaining a top priority.

The positions most difficult to recruit include skilled production workers, professional workers and high-potential middle managers, while the most difficult to retain are entry-level workers.

Respondents also reported concerns over wages, benefit costs, cost of regulatory compliance and skilled labor shortages. When asked about serious short-term business challenges within the next year  and long-term challenges within the next five years, survey respondent’s serious concerns include:

• Skilled labor shortage: 41% short-term, 50% long-term
• Ability to pay for benefit costs: 37% short-term, 56% long-term
• Cost of regulatory compliance: 37% short-term, 47% long-term
• Ability to pay competitive wages: 33% short-term, 44% long-term

Survey data also found 76% of business owners expect their 2016 overall business results to be the same or better than 2015. Executives also felt strong optimism for 2017 as compared to 2016, with 89% indicating overall business results will be the same or better in 2017. And although wages and benefits remain challenging, 81% of organizations increased wages in 2016, with 35% paying variable or bonus awards. Seventy-five percent of employers plan to increase wages in 2017, with 34% looking at variable/bonus pay.

The 2017 Survey included 1,270 participating organizations with responses covering 2,104 employer locations throughout the US.