What Your Peers Are Prioritizing in 2025

Running a business is never easy, and today’s challenges make it even more complex. In fact, 52% of business leaders say owning a business has become increasingly complicated in the last five years according to the isolved Business Owner Imperative: AI, EX & HR Optimization report.

Business leaders are juggling many priorities, from dealing with economic ups and downs to embracing new technologies and meeting evolving employee needs. Here’s more insight into what they’re focusing on this year.

Putting Employee Wellness First

Wellness has become a top priority. An overwhelming 87% of business owners reported increasing concerns about their employees' wellness including financial, emotional, social and more, over the past 12 months. To keep teams happy, leaders are offering wellness programs and encouraging a better work-life balance. A healthy work environment leads to more engaged employees who stay longer and attract top talent.

Delivering a Great Employee Experience

Creating a meaningful employee experience (EX) is more important than ever, especially with evolving employee expectations and economic uncertainty. In fact, business owners are hopeful that positive EX can lead to desired business outcomes with 28% hoping that it helps with recruitment and 24% hoping it boosts retention. To improve EX, most business owners are focusing on change management, learning and development, benefits and compensation, and engagement initiatives.

Tackling Talent and Staff Challenges

Many businesses are dealing with staffing shortages or skill gaps. In the past year, 57% of business owners have lost customers due to insufficient staff or lack of necessary skills. This revenue loss could be from not prioritizing initiatives that attract and retain top talent. To address staffing issues, leaders are focusing on offering competitive pay and creating employee experiences that support development and improve hiring processes.

Supporting Financial Flexibility

With nearly 84% of employees living paycheck to paycheck, financial flexibility is a growing focus. Leaders are exploring options like on-demand pay to help employees access their earnings when needed. Offering financial education and resources also helps employees manage their finances more effectively, reducing stress and boosting job satisfaction.

Handling Economic Pressures and Changes

Owning a business has become more complicated because of increased employee issues, difficulty recruiting top talent, economic uncertainty and cybersecurity concerns. To navigate these issues, many leaders are looking to cut costs and run more efficiently, which sometimes means making difficult choices like reducing staff or cutting back on contractors. In the next year, 59% of business owners plan to reduce non-employee (i.e., contractor and freelance) spending and 51% plan to reduce full-time employee headcount.

Using HR as a Strategic Partner

Most business owners (92%) believe human resources (HR) is successfully balancing company and employee needs. Despite challenges, strategic HR management can improve experiences for all stakeholders. Leaders plan to use HR metrics to track EX, employee retention, productivity and engagement. By monitoring these metrics, they can make data-driven decisions to enhance HR programs and align HR initiatives with broader business goals.

Getting Ready for AI

While many leaders aren’t seeing a big impact from artificial intelligence (AI) just yet, they know it’s coming. Eighty-four percent of business owners see AI as an opportunity, not a threat, and a near-equal amount (86%) of businesses have implemented training on using AI in the workplace. Leaders plan to use AI to automate repetitive tasks and make smarter decisions.

Balancing Expectations with What’s Possible

Meeting employee expectations while staying realistic about what a business can provide is a fine line that leaders work hard to balance, especially when 55% of business owners feel like employee expectations have gotten out of control. It’s imperative to find that sweet spot where employees feel valued and supported without overextending resources. This balance helps create a positive workplace culture and ensures the company can sustain its growth.