Today's middle market companies recognize a talented team is essential, serving as both the backbone of operations and a key differentiator.  High-growth midsize companies are nearly twice as likely to view their people as critical to their success. However, many struggle to maintain competitive reward packages and an engaged workforce. They also face increased demand for skilled professionals, leading to potential talent shortages and skill deficits that could jeopardize sustainable growth. (NCMM/Aon, 2024).

The Interconnected Nature of Growth

Our study, Driving Growth: The Role of People, Risk and Technology in Middle Market Success developed in collaboration with National Center for Middle Market, showed midsize companies also face increasing demand for skilled professionals, leading to talent shortages and skill gaps that could threaten sustainable growth. Addressing these challenges requires an interconnected approach—linking health, wealth, and talent to create a unified people strategy that drives business outcomes. By integrating recruitment, performance management, and retention efforts, organizations can foster an ecosystem where talent thrives, innovation is encouraged, and goals are achieved collaboratively.

Tailoring Strategies for Middle Market Businesses

Building a people strategy tailored to middle market needs means balancing resource efficiency with the unique challenges these businesses face. Unlike large corporations with expansive budgets or startups with lean teams, middle market companies must scale thoughtfully while managing finite resources. Breaking down silos and leveraging integrated human capital data enables a more strategic, aligned approach to workforce management. By focusing on optimized spending, impactful investments, and measurable returns, middle market leaders can design a cohesive strategy that ensures sustainable growth, employee satisfaction, and long-term success.

Reimaging Human Capital

To address these challenges, midsize organizations need to challenge the status quo in human capital. This means finding innovative ways to balance rising healthcare costs while continuing to attract and retain top talent. By adopting flexible, forward-thinking strategies, companies can navigate these pressures without compromising on what matters most to employees.

"Middle market leaders should focus on a people strategy that benefits both employees and the organization. Start by understanding your talent’s needs through surveys or listening sessions and act on areas of shared value. Review health and benefits plans from the employees' perspective—are they affordable, accessible, inclusive, and clear? Ensure they meet current needs and support future growth. Use data to meaningfully track progress and plan ahead. Finally, embrace innovation. Explore emerging health plans that improve affordability and access, or specialized care options for underrepresented groups to make a meaningful impact on your workforce.”
- Mechelle Medcalf-Nelson, Middle Market Segment Leader, U.S. Health

Leveraging Insights for Better Strategies  

Aon’s 2025 Employee Sentiment Study is a valuable, free resource designed to help midsize companies gain deeper insights into the evolving needs of today’s workforce. By highlighting employee priorities where traditional listening methods may fall short, this survey equips employers to address critical challenges like AI preparedness, skills development, and talent retention. For midsize firms aiming to cultivate a pipeline of engaged, adaptable talent, this data unlocks workforce potential and lays the foundation for a future poised for success.

Three Key Questions for Sustainable Workforce Management  

1. How Do We Attract the Best People to Our Organization?

Attracting top talent in today’s competitive landscape begins with understanding what truly resonates with potential hires. A comprehensive rewards strategy, informed by market and industry benchmarks, can differentiate your organization and help you attract high-caliber professionals.

Key Strategies to Attract Talent

Offer Competitive Benefits and Perks:

  • Flexible work arrangements.
  • Competitive salaries.
  • Personalized healthcare options.
  • Retirement and financial consulting.
  • Opportunities for professional growth.
It is equally important to strike a balance between immediate hiring needs and long-term organizational goals. This requires:
 
  • Deeply understanding your workplace culture.
  • Identifying specialized skills gaps.
  • Planning for workforce upskilling to create a future-ready team.
A forward-thinking recruitment plan ensures you are not only meeting today’s challenges but are prepared to adapt to tomorrow’s business shifts. Additionally, investing in employer branding and leveraging modern recruitment tools, such as AI-driven platforms, can streamline the process of finding the right talent for your organization.

2. How Do We Invest in Our People to Drive Growth?

Workforce productivity goes beyond technology—it is about employees’ physical health, mental wellbeing, job satisfaction, and sense of purpose. A supported, purpose-driven workforce drives growth. Here's how:

Optimize Rewards Programs

  • Focus on what matters most to employees— it is not about offering the most expensive rewards.
  • Align rewards with priorities, budgets, and organizational goals.
  • Communication is critical—how programs are delivered impacts perceived value.

This process is ongoing:

1. Evaluate your current programs and employee expectations.
2. Identify areas for improvement or adjustment.
3. Implement changes with clear, effective communication.
4. Measure outcomes using defined KPIs to ensure your investments are driving the desired impact.

Then, repeat. A thoughtful, well-executed approach ensures employees feel supported, valued, and engaged.

Leveraging Technology and Learning

  • Use tools like AI-driven workforce management to enhance efficiency and decision-making. 
  • Offer ongoing education and skill-building to help employees adapt, innovate, and contribute.

Building a Culture of Recognition

  • Create a culture of recognition, empowerment, and collaboration.  
  • Recognizing employees boosts engagement, morale, and loyalty.  

This is about more than productivity—it is about equipping your people with the tools, support, and motivation they need to thrive both personally and professionally.

3. How Do We Ensure Our Top Performers Stay Longer?

High-performing employees are critical to your company’s success. Retaining them requires a strategy tailored to their priorities.  
  • Start by identifying top talent: Show commitment to their growth within the organization. 
  • Prioritize development: Offer professional development, mentorship, and career advancement opportunities. Support personal goals, whether it’s health, skill-building, or retirement planning. 
  • Celebrate achievements: Regularly recognize and reward their contributions, ensuring they feel valued. 
  • Provide meaningful growth paths: Help top performers see their potential for ongoing impact, keeping them engaged and motivated.  

How Pay Transparency Can Help 

When done thoughtfully, pay transparency is one such strategy that can help boost engagement and loyalty within an organization. When employees have a clear understanding of how compensation is determined, it empowers employees to feel more valued and aligned with the organization's goals, creating a stronger, more motivated workforce. That said, organizations can find themselves in a tricky position if pay transparency is done in a haphazard manner, exposing the company to negative reputation events, a disengaged workforce and even litigation events.

"A cohesive pay transparency strategy that goes beyond regulatory compliance can drive improved colleague trust and perception of fairness within an organization.  For middle market companies, this type of strategic approach can be a unique differentiator, showcasing the company's commitment to consistent pay-setting processes and open communications. While some organizations may lack the infrastructure to implement such measures effectively, and larger counterparts often struggle with internal complexity, middle market businesses are well-positioned to lead by example, blending agility with strategy to attract and retain top talent."
- Kelsey Owen, Talent Solutions Partner

The Bigger Picture

Retention strategies are most effective when they are integrated into a larger people strategy. Focus on building authentic relationships with your employees, creating opportunities for open communication, and addressing concerns before they become issues. When your top performers feel valued and invested in, they are more likely to commit to your organization for the long term.

Building Better Businesses with Smarter People Strategies  

Middle market leaders often face the challenge of balancing growth with efficiency, all while minimizing risk. To succeed, growth efforts must align with long-term workforce investments, ensuring financial sustainability and supporting both organizational stability and employee well-being.

"Middle market companies are constantly seeking opportunities to reduce costs, reduce risks, and provide better outcomes for their employees. A Pooled Employer Plan or “PEP” is a new U.S. 401(k) retirement plan option that accomplishes these objectives. As a result, the organization can spend more time focusing on business strategy and results and less time on retirement plan compliance and administration." 
- Tim Herron, Senior Partner, Wealth Practice

By crafting people strategies that maximize impact while staying resource-conscious, middle market businesses can support sustainable growth. Success requires investing in talent, fostering innovation and collaboration, and leveraging strategic insights to remain competitive.

Your people are your business—and their success drives your own.



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 help protect and grow their businesses.