Building Strategies for Sustainable Growth as a Mid-Sized Organization

Building Strategies for Sustainable Growth as a Mid-Sized Organization
June 7, 2024 8 mins

Building Strategies for Sustainable Growth as a Mid-Sized Organization

Building Strategies for Sustainable Growth as a Mid-Sized Organization

Helping midsize organizations leverage key partnerships to address challenges around talent, market, regulatory compliance, and leveraging capital.

Key Takeaways
  1. Mid-sized organizations are experiencing significant growth which are accompanied by unique challenges and opportunities in the realms of risk and human capital.
  2. Key challenges include attracting and retaining talent, accessing market data for decision-making, regulatory compliance and leveraging capital to support sustainable growth.
  3. As organizations expand into new verticals, markets and audiences, having a trusted partner to navigate growth complexities is critical.

In the United States, mid-sized companies saw a 12.4 percent year-over-year revenue increase across the segment in 2023.1 Even as global risks intensify, the market has continued to move forward and find paths to growth. This is driven in part by the ability of these organizations to be nimble and work efficiently within industries and markets — both of which help pave the way for their adoption of new technology, strategies and approaches. 

Despite strong performance, this segment faces unique challenges. When scaling, a midsize company’s challenges more closely resemble those of larger organizations but without the same resources — access to capital, large and specialized teams, data and analytics—to tackle them. Some of the headwinds today include: 

Talent Recruitment and Retention 

Talent is a key differentiator for companies of all sizes and is critical to operational and financial sustainability. According to Aon’s Global Risk Management Survey, failure to attract or retain talent is the second-largest risk in North America and is expected to remain a top five risk through 2026. With talent consistently one of the highest costs for an organization,how a company attracts, manages and retains talent has a critical impact on performance and the bottom line. As more companies seek the same skill sets and competition for talent heats up, mid-market companies need to increase focus on competitive total rewards for talent acquisition and retention. There are two facets to this challenge:

  • Attracting Talent: When looking to attract talent, organizations can elevate their competitiveness in talent acquisition by focusing on two pivotal areas. First, specialized recruitment can create a reliable pipeline of skilled employees tailored to the organization’s needs. Second, offering comparable compensation packages that align with industry standards and meet candidate expectations is crucial.
  • Retaining Talent: Organizations should invest in retention strategies that address employees' varied needs and expectations, considering culture, total rewards, professional development and organizational values. Maximizing the investment in benefits, particularly tailored options that meet workforce needs, is crucial to reflect the company's culture and values.

Access to Capital and Risk Financing to Support Growth

Balancing the necessary investment in growth opportunities with the aligned risk is challenging for midsize organizations. Growth demands more risk financing; without capital, expansion options are limited. One in three mid-sized businesses indicated that the available investment capital was insufficient for their needs.3 

Organizations are seeking a much broader understanding of available solutions for growth and risk capital, particularly in high-stakes areas like climate, cyber, human capital and regulations. Proper financial health, the ability to take on risk and strategic investments in expansion are essential.

Maintaining Compliance

At the national and local level, regulations drive business decisions and processes. However, these regulations aren’t always aligned and the repercussions for being non-compliant can financially and reputationally harm an organization. This can create gaps in knowledge and the execution of essential procedures, potentially leading to costly fines or legal issues. Our survey indicates that regulatory and legislative changes are the fifth largest risk confronting organizations, a trend anticipated to continue through 2026. Compliance and regulatory expenses have long posed a significant burden on businesses, and the uncertainty surrounding any forthcoming regulatory changes can erode business confidence.

Leveraging Market Data for Decision-Making

High-quality data guides decision-making and simplifies organizational complexity. While large organizations have vast amounts of market data and robust analytics to track trends and changes in buying behaviors, mid-market companies can turn their agility into an advantage. With predictive intelligence, mid-sized companies can swiftly capitalize on opportunities and make impactful decisions with speed and precision.

Strategic Steps for Growth

Despite challenges in talent, access to capital and risk financing, regulatory compliance and data gaps, mid-sized companies can maintain momentum by:

  • Creating a Talent Strategy: Focus on attracting and retaining top talent by emphasizing the employee value proposition, engagement and competitive offerings. Adopting benefits solutions such as a pooled employer plan may help mid-sized companies provide employees access to savings opportunities comparable to larger organizations. The sustainability of the talent strategy should focus heavily on benefits, particularly at a time when, the global average medical trend rate for 2024 is forecasted to be 10.1%, up from 9.2% in 2023 and the highest rate since 2015.  Meanwhile, 59% of U.S. employers say benefits will increase in importance as a differentiator in their total rewards package. Wellbeing will also continue to distinguish talent strategies for mid-sized companies; research shows that organizations that invest strategically in their employees create a competitive advantage.
  • Innovative Capital Solutions: Identify innovative solutions to access capital and manage risk financing strategically to help balance expansion and the risk and regulatory obligation that comes with it. For some organizations, the total cost of risk typically equates to as much as 3.5 percent of total revenue. Collaborating with advisors to uncover hidden value sources, like intellectual property, and managing total risk costs can provide a significant advantage to mid-sized companies.
  • Coordinating Compliance: Collaborating with the right team can transform your business by offering specialized knowledge and tailored strategies that ensure compliance. An experienced partner goes beyond mere advice; they conduct comprehensive assessments, identify potential risks and develop resilient compliance programs. This empowers midsize organizations to navigate and excel in complex regulatory landscapes, ensuring both adherence and operational efficiency.
  • Leveraging Partnerships for Data and Insights: Develop partnerships that augment current capabilities through data, insights, and advisory services. These partnerships should provide vision and guidance around market trends, forecasting and talent support, leveraging economies of scale comparable to large organizations. The right ally has the industry, location and segment experience to support current goals while being prepared to expand with the organization as needs and growth plans evolve. 

Solving these challenges lays the foundation for sustainable growth and future stability. Making key decisions and forming strategic partnerships now will provide the necessary guidance and support through changing times and into the future.




of U.S. employers say benefits will increase in importance as a differentiator in their total rewards package.

Aon Health Survey, 2022

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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