Flex or Falter: How Medium and Mid-Market Enterprises Can Thrive in the Future of Work

Editor’s Note: This post was sponsored by HP. 

Today’s medium and mid-market enterprises (MMEs) – companies with 500 to 1,000 employees – are the quiet powerhouses reshaping America's job landscape. MMEs employ 5% of workers, or 25 times their relative proportion in the U.S. economy, according to the U.S. Census Bureau. While economic indicators have hinted at a cooling job market, MMEs have defied expectations, boasting the second-highest rate of workforce expansion over the past year. These findings, highlighted in the LinkedIn 2024 Mid-Market Enterprise Economy Report, sponsored by HP, shed light on a crucial yet often-overlooked segment of the business world. The new report, which draws from LinkedIn's Economic Graph data, provides a peek into the future of work and how MMEs can evolve to maintain their competitive edge. It suggests that MMEs' ability to thrive will depend on their ability to navigate a complex environment, including the demand for new skills, rising technological disruption and evolving employee expectations. 

The Shifting Skills Paradigm 

In less than a decade, the professional world could look startlingly different. Skills for a job are expected to change by up to 68% by 2030, explains LinkedIn’s Chief Economist Karin Kimbrough in the 2024 Mid-Market Enterprise Economy Report. This seismic shift in necessary job skills presents both opportunities and challenges for MMEs, who often find themselves at a disadvantage compared to larger enterprises when it comes to resources for upskilling and reskilling their workforce. However, there's a silver lining: the strategic use of technology and tailored training programs can help MMEs navigate this skills transformation. 

Importantly, leaders must avoid a one-size-fits-all approach when it comes to upskilling. To better understand the world’s relationship with work HP created the Work Relationship Index, an annual study. New data from the 2024 HP Work Relationship Index (WRI) underscores this importance of cultivating diverse skill sets that encompass not only hard skills, such as technical proficiency and writing, but also human skills like mindfulness, self-awareness, communication, creative thinking, resilience, empathy and emotional intelligence. Therefore, by accommodating different working and learning styles with a comprehensive skill development strategy, MMEs can help employees build healthier, longer lasting and more fulfilling relationships with work. 

Bridging the AI Knowledge Gap and Improving Fulfillment at Work   

Workforce upskilling is gaining momentum across industries, with mid-market enterprises at the forefront of this trend. The LinkedIn 2024 Mid-Market Enterprise Economy Report reveals that MME employees added up to six skills to their LinkedIn profiles over the past year, marking a substantial 26.6% increase from 2023. However, a concerning gap has emerged: MMEs are lagging behind larger companies (1,000+ employees) in developing AI-specific capabilities. 

This shortfall is particularly worrying given the significant benefits reported by AI users in HP’s 2024 WRI. Sixty percent of knowledge workers who embraced AI in 2024 said the technology plays a role in improved work-life balance with 68% noting it opens up new opportunities to enjoy work, and almost three-quarters (73%) believe it will help with career advancement. While there is a generational divide, with Gen Z and Millennial workers leading in AI adoption, even one-third (36%) of Boomers have incorporated AI into their work routines. Notably, half of business leaders (51%) and IT decision makers (50%) believe AI will help them focus on more meaningful and fulfilling work by allowing them to offload more repetitive and routine tasks. This is especially important given fulfillment was found to be one of the drivers with the strongest impact on the world’s relationship with work in 2024. With the widespread embrace of AI, MMEs cannot afford to be left behind in this technological shift. 

The Future is Flexible and Multigenerational 

The LinkedIn 2024 Mid-Market Enterprise Economy Report points to demand for flexible work continuing to soar. On LinkedIn, about one in five positions offers remote or hybrid working arrangements, and while remote jobs only make up 8.3% of job postings, they attract a staggering 43% of job applications. This trend is further reinforced by 2024 HP WRI data showing that more than two-thirds of global knowledge workers say they are seeking a personalized work environment, as are three-quarters or more of business leaders and IT decision makers. While recent LinkedIn data shows MMEs have been at the forefront of reducing remote work positions, companies embracing flexibility are more likely to gain a competitive edge in talent acquisition and retention. 

Further, supporting personalized work experiences will be key. According to 2024 HP WRI findings, those who currently experience work personalization are much more likely to have a healthy relationship with work. This concept extends beyond location flexibility to include personalizing workspaces, access to technologies that support individual working styles, and the way employees define and shape their flexible working environment. This year’s WRI found this desire for personalization to be particularly pronounced among younger generations, with over 80% of Gen Z and Millennials reporting they would be willing to forgo a portion of their salary for personalized work options. As MMEs navigate a shifting multigenerational workforce, understanding and accommodating diverse preferences will be crucial for fostering engagement, productivity and long-term success. 

Collaboration Is the New Competitive Edge 

In today’s era of flexible work, fostering collaboration across teams and territories has become paramount for employee engagement and retention. However, this goal presents significant challenges, particularly for MMEs. The LinkedIn 2024 Mid-Market Enterprise Economy Report indicates a concerning trend: Companies of all sizes are experiencing a slowdown in developing internal connections among employees, with MMEs bearing the brunt of this downturn. To combat this issue, strategic investments in technology can play a crucial role. For instance, AI PCs can break down language barriers for global teams through real-time translations, while investments in collaboration tools can ensure that employees feel heard regardless of their physical location or work arrangement. 

Yet, technology alone is not a panacea. HP’s 2024 WRI underscores the importance of leadership and human connection in the workplace. Notably, 78% of knowledge workers say it’s important to have senior leadership who demonstrate empathy and business leaders agree, saying their ability to show empathy positively impacts their employees’ well-being and professional growth. However, only 28% of knowledge workers say they consistently see their senior leadership demonstrate empathy. This stark contrast highlights the need for business leaders to go beyond technological solutions and focus on building bridges within their organizations. By demonstrating empathy, encouraging authentic communication and placing people at the heart of decisions, MME leaders can foster genuine connections and drive stronger engagement and retention.  

How MMEs Can Lead the Way 

As the workplace continues to evolve, medium and mid-market enterprises stand at a pivotal crossroads with unique opportunities to lead and innovate. By prioritizing upskilling initiatives, fostering meaningful connections and collaboration, embracing flexible work arrangements and strategically integrating AI technologies, MMEs can leverage their agility to outpace larger competitors. Those that strike the right balance between technological advancement and people-first practices will not only flourish in the new world of work but also cultivate teams that are deeply engaged, professionally fulfilled and well-equipped to tackle the challenges of tomorrow.