Nelson Connects releases 2025 workplace trends, salary guide

Findings from a new survey reveal how business trends have changed over the past two years, and push forward strategies and expectations for the path ahead.

The biggest takeaway going forward is the importance of embracing artificial intelligence, according to Nelson Connects’ 2025 Salary Guide and Workplace Trends Report.

“AI’s rapid expansion into all areas of work means we must include it in our business strategies with the understanding that transformation is inevitable,” said Jeff Phelps, CEO of the Sonoma-based staffing firm. “Most companies today recognize the need to integrate AI to maintain a competitive edge, whether in automating processes, enhancing customer experiences or utilizing data for strategic insights.”

There is evidence that business leaders have been increasingly making the shift.

In 2024, Nelson found the number of businesses not using AI was 31%, a substantial improvement from a year earlier, when 73% of respondents said they were not using the technology. ChatGPT was most popular for user-friendliness and its diverse range of functions, according to Sonoma-based Nelson’s report, released March 14.

The report

Over the last two years, Nelson surveyed over 600 business leaders across more than 35 industries to gain their insights and experiences on a variety of employment topics. The salary guide accounts for the majority of Nelson’s complimentary report, detailing compensation rates for more than 200 positions across the state, including county-level pay ranges within the North Bay. The guide also provides national salary trends for major metropolitan markets.

In the workplace trends portion of the report, Nelson addressed economic factors as businesses move forward. However, the information collected at the time was prior to economic uncertainties that have since emerged under President Donald Trump’s administration.

Worksite shifts

In Nelson’s previous workplace trends report — conducted in the fourth quarter of 2022 and released the following January — 25% of employers said they required staff to return to the office full time.

In Nelson’s new survey, that number increased to 54%.

In 2022 — still emerging from the pandemic — employers were less inclined to enforce a return-to-office mandate. At the time, job candidates were largely turning down work, said then-CEO Joe Madigan. In fact, more than 60% of employers had said they either lost a job candidate or were put on the back burner if a better offer didn’t come along. And more than one-third of employers said they had employees resign if they were mandated to return to the office.

Workers and job candidates no longer seem to have the upper hand.

In Nelson’s new study, just 5% of employers viewed remote work as still being necessary for their business to remain viable.

“Our research shows many companies are prioritizing stability and predictability in compensation, focusing on cost control, standardization and becoming more selective in benefits and incentives,” Phelps said.

Those priorities also have eclipsed traditional incentives for keeping employees.

The most notable change was a drop in pay raises. In 2023, employers reported having given a raise to 70% of their employees; that number dropped last year to 46%. Bonuses were given to 41% of staff in 2023 versus 20% in 2024. Additional vacation time also was cut, from 14% in 2023 to 7% in 2024, according to the report.

Intergenerational mix

Two-thirds of employers surveyed said their staff is comprised of the four generations currently in the workforce: baby boomers (1946–1964), Generation X (1965–1980), millennials (1981–1996) and Generation Z (1997–2012).

Businesses, the report found, can benefit by blending the experience of older employees with the newer ideas of the younger workforce. Mentoring opportunities also bring value.

But there are challenges.

More than 80% of employers reported generational differences in work ethic. Baby boomers and Gen Xers prefer to work in the office, according to the study, and millennials and Gen Zers favor work-life balance and flexibility. Gen Zers also were reported to prefer remote work.

Further, 32% of employers surveyed said younger generations are more comfortable using digital tools and emerging technologies than older generations.

“It’s recognized that younger employees often bring theoretical knowledge but may lack the hands-on experience of older generations, creating collaboration challenges in fields where seasoned judgment is crucial,” the report concluded.

Cheryl Sarfaty covers tourism, hospitality, health care, aviation and employment. Reach her at [email protected] or 707-521-4259.