Post-Election Insights: Practical Advice for Your Business

PUBLISHED JANUARY 2025

As business owners and leadership teams prepare for the new administration to take office this month, you should maintain a long-term perspective. Many of the themes that you have been grappling with since the pandemic are likely to remain important in the next year and beyond. Priority issues include hiring and retaining talent, improving efficiency and navigating inflation.

With a new U.S. presidential administration and Congress poised to take office, the nation’s businesses may speculate how changes to a wide range of government policies—from tax and trade policies to social and geopolitical policies—will impact their organizations. Keep in mind that some changes discussed on the campaign trail may be held up in Congress or sidelined in favor of other priorities.  

While it’s difficult to predict how a shift in government will affect individual companies, here are several time-tested insights that can help best position businesses for the future.

1. Prioritize talent development. Given the demographic shifts and well-publicized workforce shortage, businesses should prioritize the attraction and retention of employees. To that end:

Build a strong culture. A strong work culture is one where employees feel appreciated, teamwork is strong and opportunities to grow are plentiful. Strong cultures also tend to create more productive and efficient employees.    

Create—and commit to—a career plan for employees. Find growth opportunities for your teammates and offer challenges to those who seek them. Being a partner in an employee’s career growth plan ultimately helps boost retention.

Offer competitive benefits. Employers that have strong retirement plans and affordable healthcare plans are likely to see lower turnover rates.

2. Improve efficiency. Doing more with less requires significant effort but pays off in the long run. Some tactics for that:

Embrace technology. Technological advancements have been a primary source of economic growth in the U.S. for several decades. With the rise of artificial intelligence as a disruptive technology, that trend is likely to continue. Businesses that are early adopters and embrace these potential innovations will be poised to reap the long-term benefits.

Enhance teamwork. Provide employees with opportunities to work together to achieve common goals. For employees who work remotely, create reasons for them to collaborate and, when possible, in person.  

Be agile. Manage your business in a way that prioritizes optionality. Your ability to pivot in response to future economic and political shifts will enable you to better navigate developments while mitigating any potential negative impacts.

3. Navigate inflation. Inflation remains a top concern for most business owners. You should work to:

Filter out noise. It’s important to rise above the daily barrage of inflation news and remain focused on moving business forward.  

Consider that inflation policies can change. Because congressional control can shift every two years, the current inflation policy could look entirely different in a couple of years. Potential changes in tariffs, for example, may end up being implemented for a very short period of time.

Focus on long-term expectations rather than short-term changes. Despite the growing concerns about inflation since 2020, long-term inflation expectations in the U.S. have not changed significantly in recent years. Even though inflation reached multi-decade highs in 2022, most Americans believe that annual inflation will average 2 percent to 2.5 percent, according to data from the Federal Reserve Bank of Cleveland. 

4. Take the long view. Businesses that maintain a long-term perspective are more focused and resilient. Remember:

Don’t get sidetracked by knee-jerk market reactions. History tells us that market reactions to election outcomes are short-lived and poor indicators of future market strength or weakness.

One-party control does not guarantee massive policy changes. Even when one party controls the White House and Congress, it’s possible that plans outlined on the campaign trail will be scaled down, tabled temporarily or dismissed entirely. Consult with subject matter experts (for example, CPAs can assist with tax policy advice) to get a better understanding of what policies may actually change, the magnitude of the changes and how the changes may impact your business.

Focus on core business. Avoid making business decisions in response to policy changes that will not directly impact core business. Change is often necessary, but unnecessary change can lead to a high level of inefficiency.

Rely on experts for help. Stay abreast of political developments and their potential impact on your business. Enlist the expertise of professionals who understand your business, including your banker, accountant, attorney and others. These specialists can help you better understand the political landscape and make important decisions that will best position your business for the future.