Aon, a global professional services firm, and the National Center for the Middle Market (NCMM) released the results of a new study, “Driving Growth: The Role of People, Risk, and Technology in Middle Market Success.” The survey of financial decision makers across the U.S. and Canada uncovers how middle market businesses leverage their people and keep pace with their changing risk portfolio to achieve growth. The study found two top trends supporting growth of middle market businesses: workforce dynamics and technology advancements.
“Our research with the NCMM tells us the most successful middle market businesses are focused on investing in their people and unlocking potential with artificial intelligence (AI),” Don Ortegel, executive vice president, North America at Aon, said. “Aon is committed to providing middle market businesses the right insights and expertise to help them grow while mitigating ever-growing risks.”
“NCMM studied a variety of topics over the years related to middle market growth, but never specific deep dives into the topics of talent, risk and technology,” Doug Farren, managing director of NCMM, said. “The collaboration with Aon will benefit middle market organizations looking for data-driven insights and takeaways for implementation.”
Workforce: Talent as a Differentiator
According to the study, high-growth businesses (defined as those that reported 20% or higher annual increases in revenue) recognize their workforce as a vital differentiator. These businesses consistently report that people are critical to their growth, with talent ranking as a top growth driver.
- Nearly a quarter (23%) of technology and business services firms cite their people as the key differentiator of their business model.
- High-growth businesses are also more likely to emphasize the need for additional talent, signaling that scaling their workforce is essential for continued success.
- Midsize organizations are struggling to create total rewards programs to attract and retain key talent with 57% of high-growth businesses struggling to sustain offering competitive benefits and 47% of average-growth businesses struggling.
“The research clearly shows that a strong, well-supported workforce is at the heart of sustainable growth for middle market businesses and highlights how businesses can attract and retain top talent to maintain their competitive advantage,” Ortegel said.
Technology: Cybersecurity and AI Adoption
Technology continues to play a pivotal role in shaping the future of middle market businesses. However, with this rapid technological adoption comes increased risk. According to the study:
- Nearly a quarter (22%) of businesses now rank cybersecurity as their top organizational risk, and nearly half (48%) of middle market businesses surveyed have experienced a cyber breach in the past three years. Despite the cybersecurity risks, only 30% of middle market firms have prioritized risk management expertise in their hiring over the past 12 months. Among high-growth businesses, this figure rises to just 38%.
- More than half (60%) of middle market businesses and, notably, more than three-quarters (78%) of high-growth firms, have made progress in adopting AI.
“Middle market firms are embracing technology at an impressive pace, but the research shows there is still a gap in cybersecurity preparedness,” Ortegel said. “These insights provide valuable benchmarking data to help businesses strike the balance between innovation and risk management.”
