By Brooke Thomson, President & CEO
Associated Industries of Massachusetts

(Editor’s note – The following column appeared in the 2025 Outlook section of The Springfield Republican)

Americans spend one-third of their time on the job so it’s no surprise that the workplace provides a mirror of the rapidly changing social expectations of both employers and workers in 2025.

A new study by Associated Industries of Massachusetts (AIM) documents just how fast those changes are taking place. The annual AIM HR Practices Survey – which gathers data on employment practices from more than 200 Massachusetts employers – paints a vivid picture of the ways in which companies are responding to the developing world around them.

The most telling conclusion points to a significant shift in priorities among CEOs and human-resources professionals during the five-year, post-COVID period.

At the height of the pandemic in 2021, the five priorities identified most often by companies were safety, compliance, recruitment/retention of workers, cost management and compensation. By 2024, the order of those priorities had shifted to compensation, recruitment/retention of workers, compliance, safety and morale/engagement.

Safety unquestionably remains a concern for employers, but it is no longer the overriding issue it was during the COVID crisis. Compensation, meanwhile, is now front-of-mind as companies prepare to comply with the new Frances Perkins Workplace Equity Law governing wage equity and transparency. The law requires employers with 25 or more Massachusetts workers to disclose a salary range when posting a job and provide pay range information to certain employees and applicants.

But that’s just the beginning:

• After three years on the list, diversity programs are no longer identified as one of the top five priorities.
• Sixty-one percent (61%) of respondents allow employees to work a hybrid remote work schedule. Twenty-one percent (21%) allow three days in the office with two days remote. Five percent (5%) of employers require four days in the office.
• Fifty-four percent of employers offer behavioral-health and mental-health resources compared to 22% in 2022.
• Forty-six percent of employers have noticed an increase in requests for intermittent use of Paid Family and Medical Leave, leading to staffing challenges and internal administration challenges.
• Fifteen percent of survey respondents report relaxing educational requirements and implementing skills-based hiring to expand their talent pool. Governor Maura Healey issued an executive order last year committing the commonwealth to skills-based hiring.
• More than 75% of respondents plan to offer harassment training to employees in 2025.

The surge in companies offering mental-health resources reflects what employers say has been a significant increase in employees seeking assistance for issues ranging from depression to substance abuse to domestic stress. Twenty-six percent of employers have observed an increase in requests for mental-health support, and 18% offer training for managers to better assist employees with their mental-health needs.

Employers have also increased their focus on caregiving – the AIM survey found that 24% offer elder-care information (versus12% in 2023) and 12% provide child-care resources (versus 4% in 2023). In August 2024, the U.S. Surgeon General issued a health advisory highlighting record stress levels among parents balancing work and childcare.

“Workplaces are microcosms of the complex dynamics at play throughout society. We receive scores of calls each day from companies wrestling with these dynamics” says Kyle Pardo, Executive Vice President of AIM HR Solutions.

Stacy Gilmour, Vice President of Human Resources at Quabbin Wire & Cable Company in Ware, agrees.

“Promoting mental health in the workplace is essential for fostering a positive, supportive, and productive environment for employees. Employers can adopt a variety of strategies to support well-being, including encouraging open communication, offering lifestyle benefits, facilitating access to mental health resources, promoting work-life balance, offering managerial support and training, and implementing health-focused education,” Gilmour says.

The emergence of compensation and recruitment/retention of employees at the top of the priority list reflects a labor market that remains unusually tight four years into an economic recovery.

Massachusetts employers face a persistent shortage of qualified talent, particularly in specialized industries such as technology, healthcare, and engineering. The talent gap reflects factors such as evolving skill requirements, demographic shifts, and increased competition among employers for top talent. It is an issue that poses significant hurdles for employers striving to fill critical roles while maintaining control of costs.

Companies are responding by adopting upskilling and reskilling programs, offering competitive compensation packages, and initiating enhanced recruitment efforts. Employers are also emphasizing workplace flexibility and career development opportunities to attract candidates and retain their existing workforce.

Business organizations like AIM, with its HR Solutions operation, together with partners like the Greater Springfield Chamber of Commerce, are working hard to ensure that Massachusetts companies adapt to the increasingly complex realities of the employment relationship.

One thing is certain: the world will continue to change in 2025 and Massachusetts workplaces will change right along with it.