Are Tri-City business leaders and employees feeling grim that the region’s business climate isn’t improving?

A recent survey suggests they might be.

Business leaders and employees surveyed in Washington, Oregon and Idaho are becoming increasingly concerned the regional economy isn’t getting better, with 29% of leaders and 44% of employees reporting it has declined or weakened steadily since 2019.

Both groups largely attribute their concern to inflation and supply chain disruptions, according to the 2023 Business in the Northwest report from Washington State University’s Carson College of Business. This year is the survey’s sixth edition.

We’ve written plenty about how these issues are affecting local businesses’ bottom lines, so these results likely won’t come as a surprise.

Several restaurant owners told us in fall 2022 they faced steep price increases for food as well as food shortages. Anyone shopping for groceries also could confirm this.

Throughout the pandemic, supply chain challenges hit many sectors of the economy, from construction and health care, to agriculture, retail and manufacturing.

The WSU survey also highlights a growing disconnect between employers and employees, especially related to wages and benefits.

It’s important to acknowledge them.

Two-thirds of business leaders say they want to create more jobs for their companies but can’t offer competitive compensation.

As business leaders struggle to provide competitive compensation, they are instead placing greater emphasis on other benefits like flexible work schedules (36%), job security (30%) and manageable workloads (24%).

However, employees don’t share these same priorities.

More than 90% say they want a higher salary, while 37% say they want a more flexible work schedule, the survey noted.

Aside from pay raises, employees would prefer to receive company-paid health insurance (54%), paid retirement programs (35%), and guaranteed severance packages for employees at all levels (16%).

This is different from business leaders, who rank these non-financial benefits the highest: flexible work arrangements (36%), manageable workload (24%) and professional development stipends (14%).

Despite these disconnects it is nice to see that 75% of business leaders and 55% of employees surveyed are optimistic about the future.

These percentages are encouraging but they’re not enough.

To ensure this optimism is justified, it’s critical to promote possible solutions for the issues facing business.

This could involve better collaboration between employers and employees to find creative solutions for compensation and benefits. It also should include advocacy for policies at the local, state and federal levels that support small business and address economic concerns, such as tax incentives for small businesses, simplified regulations and more affordable health care.