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August 01.2025

2 Minutes Read

How Midsize Cities Drive Innovative Employee Engagement Strategies

Vibrant city triptych showing small-business growth graphs

The Midsize City Advantage

Midsize cities are emerging as unlikely but powerful players in the small business landscape. A new report highlights that these cities are not only attracting residents but also experiencing incredible growth in small business payments, greatly outpacing their larger counterparts. As companies in these areas adapt and thrive, they're becoming essential centers for innovative employee engagement strategies and inclusive workplace cultures.

Understanding the Data: A Growth Surge

The report from BILL indicates that business-to-business accounts payable spending has skyrocketed in midsize cities, with an impressive 32% growth in payments over the past year. As Fergus McCormick, Chief Economist at BILL, points out, this trend reflects a resilience among small to medium-sized businesses in these cities, especially noticeable during the pandemic. When larger cities saw an 11% growth rate, it became clear that midsize areas were becoming the new economic engines.

Why Midsize Cities Are Thriving

So, what is drawing people and businesses to these midsize cities? The influx of new residents has been boosted by factors like lower living costs, enhanced safety, and better educational opportunities. States such as Texas and California are not only home to some of the fastest-growing cities but are also recognizing the value of strong community ties, psychological safety, and inclusive leadership styles that empower their businesses.

Spotlight on Promising Midsize Cities

The top five midsize cities driving small business growth are Mesquite, Texas; El Monte, California; South Fulton, Georgia; Quincy, Massachusetts; and Broken Arrow, Oklahoma. These cities exemplify the adaptive strategies businesses need, fostering a culture that emphasizes belonging and employee voice.

Future Considerations for HR and Business Leaders

As organizations adapt to these shifts, HR generalists and engagement officers must consider how these regional dynamics impact workforce strategies. Engaging cross-cultural teams and providing support for Employee Resource Groups (ERGs) can transform employee experiences, leading to thriving team dynamics and a stronger sense of belonging at work. The data suggests that a focus on workplace culture—catering to inclusivity and employee engagement strategies—will yield significant benefits in terms of retention and productivity.

In conclusion, as midsize cities continue to flourish, the intersection of business growth and community well-being becomes increasingly important. Leaders should capitalize on these insights to nurture a fulfilling work environment for their teams, aligning workplace values with the evolving job market.

Culture & Engagement

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