Distinguishing Employees as Strategic Assets: 4 Key Lessons for Growth

Middle market companies, particularly those experiencing high growth, consistently highlight their people as a core driver of success. From groundbreaking innovations to creative problem-solving, employees serve as a unique differentiator. In fact, high-growth middle market companies are nearly twice as likely to assert that their workforce fuels their competitive advantage.

Yet, despite this acknowledgment, many organizations face significant challenges. Recent research from The National Center for the Middle Market shows that while 88% of high-growth companies offer highly competitive rewards packages, 57% struggle to sustain them. These challenges extend to talent acquisition and retention, with over half of high-growth and average-growth companies citing difficulties in finding and keeping quality employees.

To bridge the gap between recognizing people as assets and effectively managing them, middle market leaders can draw on insights from Beatty, Becker, and Huselid’s The Differentiated Workforce. This groundbreaking approach emphasizes the need to align workforce strategy with business objectives, ensuring employees become a true differentiator.

1. Strategic Workforce Segmentation: Focus on Critical Roles

Not all roles contribute equally to organizational success. Leaders must identify positions that have the greatest impact on achieving business goals. By prioritizing investments in these critical roles, companies can allocate resources where they matter most, ensuring top talent is positioned to drive innovation and growth (see our blog post on Critical Roles for more detail). 

For example, in a high-growth tech company, software engineers working on proprietary platforms may be more critical than roles in support functions. Identifying and prioritizing such key positions helps ensure the right people are in the right roles.

2. Tailored Talent Acquisition: Hiring for Strategic Impact

Hiring the right people is about more than filling positions—it’s about aligning new hires with the company’s strategic objectives. This requires leaders to move beyond traditional hiring practices and embrace a differentiated approach.

High-growth companies should develop hiring profiles that align with critical competencies and behaviors needed for success in key roles. Leveraging data-driven assessments and structured interviews can help ensure candidates not only fit the culture but also possess the skills to contribute meaningfully to long-term goals.

3. Customized Rewards and Retention Strategies

One-size-fits-all compensation strategies are insufficient in today’s competitive talent landscape. To sustain their growth trajectory, middle market companies must tailor rewards packages to reflect the unique needs and values of their most critical employees.

This could include offering career development programs, leadership training, or flexible work arrangements for high-performing individuals in key roles. By aligning rewards with employee priorities and organizational goals, companies can foster loyalty and reduce turnover.  For more on this topic, please see our blog post Unlocking Employee Potential in High-Growth Middle Market Companies.

4. Empowering Employees Through Strategic Alignment

Empowered employees are engaged employees. Leaders must ensure that their workforce understands how their roles contribute to broader organizational objectives. Clear communication of goals and providing employees with the tools and autonomy to succeed are essential to unlocking their potential.

High-growth companies often experience rapid changes, which can lead to disconnects between leadership and employees. Regular feedback loops, strategic check-ins, and transparent communication can bridge this gap, ensuring employees feel valued and aligned with the company’s vision.

Transforming Perception Into Action

While many middle market companies perceive their workforce as a key differentiator, fewer succeed in transforming that perception into action. By adopting a differentiated workforce strategy, you can address the complexities of attracting, retaining, and engaging top talent while ensuring employees are positioned to deliver maximum strategic impact.

Your workforce is your greatest asset. Invest intentionally, align strategically, and empower them fully to achieve sustained success.

Why  29Bison?

Choosing the right partner for HR due diligence and integration is critical to the success of any transaction, and 29Bison offers unmatched expertise and support in navigating these complexities. With a people-first approach, we go beyond traditional due diligence to address not only workforce-related risks but also opportunities that drive long-term value creation. Our comprehensive HR due diligence services uncover hidden risks, optimize workforce strategies, and identify synergies that align with your strategic objectives. Post-transaction, we provide tailored HR integration solutions designed to foster a seamless transition, retain key talent, and build a cohesive organizational culture that supports sustainable growth.

At 29Bison, we’re more than human capital consultants—we’re partners invested in helping you achieve your vision by maximizing the potential of your most valuable asset: your people. Let us help you turn challenges into opportunities and create a solid foundation for success. Reach out today to learn how we can support your HR diligence and integration needs.