Aon and the National Center for the Middle Market Reveal Growth Trends
Rhea-AI Summary
Aon plc and the National Center for the Middle Market (NCMM) have released a study titled 'Driving Growth: The Role of People, Risk, and Technology in Middle Market Success'. The research, conducted among financial decision-makers in the U.S. and Canada, reveals two key trends supporting middle market business growth: workforce dynamics and technology advancements.
Key findings include:
- High-growth businesses recognize their workforce as a vital differentiator, with 23% of technology and business services firms citing people as their key business model differentiator.
- 57% of high-growth businesses struggle to sustain competitive benefits offerings.
- 22% of businesses rank cybersecurity as their top organizational risk, with 48% experiencing a cyber breach in the past three years.
- 60% of middle market businesses have made progress in adopting AI, rising to 78% among high-growth firms.
The study aims to provide insights for middle market businesses to grow while mitigating risks in an evolving business landscape.
Positive
- High-growth businesses recognize workforce as a vital differentiator for growth
- 60% of middle market businesses have made progress in adopting AI
- 78% of high-growth firms have made progress in AI adoption
- Aon's acquisition of NFP expands its presence in the fast-growing middle-market segment
Negative
- 57% of high-growth businesses struggle to sustain offering competitive benefits
- 48% of middle market businesses surveyed have experienced a cyber breach in the past three years
- Only 30% of middle market firms have prioritized risk management expertise in hiring over the past 12 months
Insights
This study offers valuable insights into the growth drivers for middle market businesses, focusing on workforce dynamics and technology advancements. Key findings include:
- 23% of tech and business services firms cite people as their key differentiator
- 57% of high-growth businesses struggle to offer competitive benefits
- 22% of businesses rank cybersecurity as their top organizational risk
- 48% of middle market businesses experienced a cyber breach in the past three years
- 60% of middle market businesses have made progress in adopting AI, rising to 78% for high-growth firms
These trends highlight the importance of talent management and technology adoption in driving growth. However, the gap in cybersecurity preparedness is concerning, especially given the high rate of cyber breaches. For Aon, this research supports their strategic focus on the middle-market segment, potentially driving demand for their professional services in risk management and talent solutions.
While this study provides interesting insights, its direct financial impact on Aon is not immediately clear. The research aligns with Aon's strategic direction, particularly following their acquisition of NFP, which aimed to expand their middle-market presence. Key financial implications to consider:
- Potential for increased demand for Aon's risk management and cybersecurity services, given the high rate of cyber breaches reported
- Opportunities in talent management solutions, as businesses struggle with benefits and workforce scaling
- Possible growth in AI-related consulting services, considering the high adoption rates among middle-market firms
However, without specific financial projections or revenue targets, it's challenging to quantify the immediate impact on Aon's bottom line. Investors should monitor how Aon leverages these insights to drive service offerings and client acquisition in the middle-market segment over the coming quarters.
Middle market firms in the
"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,
"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
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
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SOURCE Aon plc
FAQ
What are the key trends supporting growth in middle market businesses according to the Aon and NCMM study?
What percentage of middle market businesses have experienced a cyber breach in the past three years?
How many middle market businesses have made progress in adopting AI?
What percentage of high-growth businesses struggle to sustain offering competitive benefits?
