You cannot talk about job creation in today’s economy without talking about middle-market companies. These businesses comprise nearly a third of the private sector GDP and nearly 25% of the labor force, and business is booming in the mid-market according to research from American Express and Dun & Bradstreet. Companies with revenues above $10 million but lower than $1 billion created almost 2.1 million of the 2.3 million total net new jobs added to the economy over the last several years, and that pace should continue into the foreseeable future.
The Challenges Of Changing Labor Dynamics
Mid-market companies are nimbler than their larger corporate counterparts. They can typically react to changing forces more quickly, making them well-equipped to respond to change, and growth often occurs quickly.
“The core of the Mid-market falls in the $50M to $100M in revenue. That can range from 80 to 250 person companies and they have passed the hurdle of being small; tracking towards “great” while being innovative, disruptive and offering an amazing culture for employees to get wildly promoted.” Says Sharon Tsao, EVP Sales, Marketing & Accounting.
In the war for talent, middle-market companies can often find it difficult to compete with larger companies when it comes to name recognition, salary and benefits; and they struggle to compete with the “newness” and lure of an exciting startup.
This problem can be further exacerbated by the Baby Boomer conundrum. For years, economic experts have been warning companies about the mass exodus of Baby Boomers from the labor force, but many companies failed to adequately prepare. According to the National Center for the Middle Market, 40% of all mid-size companies have not implemented a plan to address the impact of the loss of their older workers and 63% say they struggle to attract talented professionals into senior positions.
Without the right managers and leaders in place to steer business expansion, or if managers retire before a growth plan is realized, the new endeavor could fail before it ever has the chance to get off the ground.
Talent Acquisition and Development Must Be Included In Growth Plans
The stakes are high for middle-market companies, and just as the company engages in extensive planning for expanding into new products and services, they should also engage in extensive planning so that their expansions can be manned by top talent.
A strategic staffing and recruiting partner with a track record in the middle market can help companies not only with immediate needs, but with long-term planning as well. The right partner can decrease the cost of hiring new employees while increasing retention and reducing attrition. Additionally, a best-in-class partner can help identify areas for improvement in the workforce, and develop strategies to help the company react quickly to access the right skill sets and personality types to keep hiring in pace with company growth.
When a middle-market company can access the right people at the right time, expanding into new markets becomes less risky. A strong partner can help their clients understand the market they are entering; addressing the current state of the labor pool and their strategies to attract people with the skills they need to make the expansion a success.
If your mid-market company operates in or is looking to expand in markets near Phoenix, Arizona; Philadelphia, Pennsylvania; Southern New Jersey; New Castle, Delaware; or Jacksonville Florida, Contemporary Staffing Solutions can help you achieve your growth goals through strategic hiring. Contact us today to learn more about our track record in the middle market and how we can help your company succeed.