PR Newswire
CHICAGO, Oct. 9, 2024
Middle market firms in the U.S. and Canada see opportunity in their workforce dynamics and technology advancements
CHICAGO, Oct. 9, 2024 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, and the National Center for the Middle Market (NCMM) today announced 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 comprehensive 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)," said Don Ortegel, executive vice president, North America at Aon. "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," said Doug Farren, managing director of NCMM. "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 percent 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 percent) 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 percent of high-growth businesses struggling to sustain offering competitive benefits and 47 percent 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 percent) of businesses now rank cybersecurity as their top organizational risk, and nearly half (48 percent) of middle market businesses surveyed have experienced a cyber breach in the past three years. Despite the cybersecurity risks, only 30 percent 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 percent.
- More than half (60 percent) of middle market businesses, and notably, more than three-quarters (78 percent) 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."
Aon is committed to expanding its presence in the fast-growing middle-market segment, which was a key driver behind its acquisition of NFP earlier this year and the investment in this research with the NCMM.
The research was conducted through online surveys of 400 financial decision makers at middle market businesses across the U.S. and Canada between June 27, 2024, and July 17, 2024. Respondents included senior leaders actively involved in financial decision-making at businesses with more than 500 employees and annual revenue between $50 million and $1 billion.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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About NCMM
The National Center for the Middle Market is the leading source of knowledge, leadership and innovative research focused on the U.S. middle market economy. The center provides critical data, analysis, insights and perspectives to help accelerate growth, increase competitiveness and create jobs for companies, policymakers and other key stakeholders in this sector. Stay connected to the center by contacting [email protected].
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