At some point in nearly everyone’s career the question of whether to work for a large or small company arises. There are both pros and cons with regard to each and a careful examination needs to be made of work values and style in order to choose the environment which will be most conducive to ensuring overall satisfaction, as well as professional growth and development. What follows are some considerations with regard to both small and large companies.
Smaller businesses are usually characterized by the owner playing a significant role in the day-to-day operations of the firm. In most cases, all staff maintain a personal relationship with the owner who likely has a hand in every aspect of running the business. There is usually increased pressure to drive revenue through sales growth and client service. Depending on the management style of the owner, employees may either be treated as “partners” with significant input into the day-to-day operation of the company, or be viewed as “assistants” to the owner who exhibits rigid control over all decisions with a tendency to micro-manage staff. In most cases, this management style can readily be determined from the interview process so that candidates will know beforehand whether this will be an environment in which they will feel comfortable working.
An important consideration is that there tends to be more risk involved in working for a small company, especially one which is less than two years in operation. A company in operation this length of time is still in its early stages and there is a possibility that the business many not survive over the longer term. It is also likely that the pay and benefit structure of a small company will be less, in some cases significantly less, than that offered by larger-size firms.
On the positive side is that working for a democratic owner will likely mean that employees will be given a large amount of responsibility and, as the company grows, employees may be promoted into senior-level and management positions on a more accelerated basis than will be the case with larger firms. In addition, innovation and creativity may more likely to be fostered and valued in a smaller than larger company since the smaller firm does not have to answer to shareholders or board of directors who have their eye on bottom line profits and less tolerant of new ways of doing business. In short, a small business environment is best suited toward those who are comfortable with a certain amount of risk in the interest of assuming a great deal of responsibility, along with growth potential.
Larger firms are much more autonomous and employees do not have the same degree of familiarity with one another that is common to smaller size firms. The work also tends to be much more compartmentalized with each department responsible for just one aspect of the total effort. This can lead to a certain mental fragmentation since employees don’t have the opportunity to track a given assignment from start to finish. There is also a rigid hierarchy with several layers of bureaucracy to wade through before any new process or idea can be acted upon. Most often employees are provided no opportunity to have a voice in the day-to-day decisions, both large and small, which affect the company as a whole. As a result, whole divisions may be closed down with significant lay-offs with employees being given little, if any, notice. It is also true that the path to promotional opportunity is long and steep and, oftentimes, a candidate is brought in from the outside who brings a specific skill set from having performed a similar role at another firm.
We have also seen in recent times that unscrupulous management can lead to the fall of a company through decreased profits which lead to significant company lay-offs, even as the highest executives create golden parachutes for themselves and escape any economic consequences.
There are some significant advantages to working for a large company; perhaps most notably is that larger firms do offer somewhat more security to employees than a smaller firm due to their having an established presence in the markets they serve. They also tend to offer more attractive salaries and a more comprehensive benefit package than do smaller firms. It is also the case the being successful in a senior role at a larger firm makes one a very attractive candidate for a high level position within a smaller company, oftentimes up to the level of President or CEO.
While the above is certainly not a comprehensive discussion of the pros and cons of working for a small or large company, it does provide a starting point when planning your next career move. Take some time to weigh what is most important to you in your career so that you can make a decision with which you can be satisfied over the longer term.
