Buckle Up: More Business Challenges Lie in Wait

PUBLISHED MARCH 2025

Already, 2025 has been a year of growth and evolution, with even more changes on the horizon. From shifting macro-economics to a new administration, companies—and their employees—have many considerations to balance. Business owners should consider the following tips as they navigate these evolving dynamics:

1. Efficiently navigate macroeconomic trends.

Throughout this year, readers should expect to feel the ripple effects of changing interest rates, tariffs, inflation and more. Business owners should plan to evaluate which strategies and processes can be maintained or must be adapted, all while mitigating risk. In particular, they should explore opportunities to raise and deploy capital more efficiently. Agility will be key this year, and having financial flexibility can be the difference between capturing or missing an opportunity. 

Based on conversations with clients, we know that business owners are also looking to diversify their supply chains, enhance their energy infrastructures, improve their cybersecurity cultures and strategically expand into new markets this year. Navigating these changes in an uncertain environment can be daunting, so we encourage business owners to leverage the expertise and tools of strategic partners, such as bankers, financial advisers and lawyers.

2. Hedge international bets.

Advancements in digital technology have facilitated easier access to and participation in the global market, ushering in a new era of growth as capital, goods, ideas, labor and services flow freely across borders. This may be contributing to an optimistic outlook, with the Bank of America Women & Minority Business Owner Spotlight revealing that most U.S. business owners believe the national (60 percent) and global (57 percent) economies will improve over the course of the year.

Businesses should remain cautiously optimistic, however, recognizing that the trajectory of interest rates and the global economy remains uncertain. They should also hedge against international expansion bets. When expanding a company’s global footprint, finance and treasury executives must pro-actively prepare to manage currency exposures, pricing, foreign bank services and overseas counterparty risk.

3. Prioritizing employee benefits despite market shifts.

The U.S. labor market has been a whirlwind in recent years, but data suggest a shift toward more stability. According to the Department of Labor, separations have been steadily dropping, and the Bank of America 2024 Workplace Benefits Report found that 70 percent of employees plan to stay in their jobs for the next year.

Still, employers should not rest on their laurels. Organizations should remain tuned into the needs of their employees and prioritize benefits that resonate. According to the BofA report, employees are increasingly drawn to wellness reimbursements and debt assistance. However, compensation remains a primary driver of retention. 

Employees are generally optimistic about the future, but inflation remains a top concern, with two-thirds expressing financial anxiety and 76 percent worrying about their paychecks keeping pace with the cost of living. Annual salary reviews are standard, but companies may also consider leveraging equity compensation, which 67 percent of employees say is a significant draw. They should also prioritize robust financial wellness resources, including online tools and retirement-planning support.

The rest of the year will continue to challenge leaders to adapt to the myriad forces shaping the business world. We believe those best-positioned to manage and sustain growth in the second half of this decade will be businesses diversifying their supply chains, embracing innovation, and prioritizing the needs of their employees.