The company you choose to work for is a big decision that can have a long term impact on the rest of your career, finding the right place can significantly contribute to your professional growth, well-being, and job satisfaction. Ending up in with the wrong company can stagnate your career progress, lead to dissatisfaction, and hinder your personal well-being. That's why it's so important to find a company that aligns with your personal values and provides a positive and inclusive work environment that enhances your overall job experience.
With this in mind, we've broken down some of the key difference you'll want to consider when making the decision to go into a big corporate business, or a smaller business. Each have there own pros and cons, and it's ultimately up to you to decide where your values lie, and what suits your lifestyle.
Stuck between whether you want to be a big time executive, spending your days in the city skyline, or working for a small, yet successful business? The decision can be tough, both options have their pros and cons. Small businesses tend to have flat hierarchy, close knit teams, and a focus on individuals needs, while large organisations are often more secure and stable, with standardised policies and procedures. If you’re stuck on which direction you want to drive your career in, we’ve laid out some of the main differences between each option to better help your make the right decision for you.
The classification of small to large businesses differs depending on where you go and who you ask. In America, the category of small businesses is very broad, defining small businesses by revenue ranging from $1 million to over $40million, and by employment from 100 to 1,500 employees. For example, a roofing contractor can be defined as a small business if it has annual revenues of$16.5 million or less. In New Zealand however, SME’s(small and medium enterprise) are classified as firms with 6 to 49 employees.
The culture difference in small vs large businesses can be big, from decision-making and hierarchy to communication and values there are several key differences.
Decision making within the typically flat hierarchy of small businesses, are made more quickly and easily by the owner or a small group of leaders. This also means there are more decisions being made at the staff level, as it doesn’t process down from high-ranking executives, giving employees more authority with less supervision. This gives more room for individual initiative and risk-taking. On the other hand with large businesses, there is a complex hierarchy, and decisions involve multiple layers of approval, making change a slow and bureaucratic process. This leaves room for less individual input and emphasises following established procedures.
Communication in small businesses is often more direct and informal, as with a smaller team everyone knows everyone else on a deeper level and information flows freely. Open-door policies allow easy access to guidance/leadership. Large businesses often have complex hierarchy, and with the sheer amount of staff compared to small businesses, leadership can’t always have an open door policy for everyone. Formal channels are key, communication often goes through emails, meetings, and reports, and with some departments isolated from others information may not be readily shared across teams.
The Values of small businesses are often focused on innovation, agility, and customer service, as well as a reputation for being more agile, and being more willing to take risks, as they often have more direct control over decision-making with less bureaucracy. Large business can face challenges in implementing changes due to their size and bureaucratic structures, they also have a more conservative approach to risk management due to the need for stability and shareholder expectations, so they tend to value predictability, scalability, and established processes. Large businesses prioritise efficiency and standardised operations to ensure consistent performance on a larger scale.
The employee experience at small businesses tends to have more focus on the individuals rather than teams. Leaders focus on the performance of individuals, promoting individual performance, creativity, and personalised development. In small businesses, the close-knit nature often fosters a more personalised approach to the employee experience. On the other hand, large organisations tend to have a team focused approach rather than an individual one, shifting the emphasis towards teamwork and structured processes, as success of a project or task is frequently measured by collective achievements rather than individual performances.
Small businesses come with opportunities for learning and growth through wearing multiple hats, and taking on new challenges, contributing to various aspects of the business. The entrepreneurial environment encourages individuals to take initiative and make a direct impact on the company’s success, Leading to more immediate recognition. Employees may have the opportunity for close mentor ship from business owners or senior leaders. Career growth is often linked to the ability to adapt, innovate, and contribute across different facets of the business.
Large businesses have defined career paths and specialisations, opportunities for advancement within the company, specialised roles and distinct departments. Employees may progress within a specific career track, following formalised career paths. The corporate hierarchy establishes standardised criteria for progression, and career growth often involves climbing the corporate ladder through meeting established performance metrics and fulfilling specific criteria.
Working at a small business can be like walking a tight rope while large corporations is more comparable to walking across a bridge. While small businesses may not offer the same level of stability as large corporations, they can provide unique opportunities for growth and job security in the long run.
Small businesses are nimble and can pivot quickly to meet changing trends, so they don’t always suffer massive layoffs during economic downturns compared to large companies, they are however more susceptible to economic fluctuations and industry disruptions due to having fewer resources which can lead to layoffs. Small businesses are also fast paced and ever changing, which can be too stressful for some people to deal with, but as you will likely take on multiples responsibilities in a small business, the versatility can make you amore attractive candidate in future.
Large corporations generally have more resources and are less vulnerable to economic downturns, so you can feel a bit more certain during uncertain times. Large corporations also provide clear career paths with opportunities for advancement and specialisation so you can feel a safer in the prospect of your long-term job security. While generally more stable than small businesses, large corps are not immune to layoffs during hard times, which can be risky for non-essential roles.
With fewer levels of bureaucracy in small businesses, they often provide on the job training, throwing you into real world challenges the accelerate your learning curve. Your often exposed to a diverse set of tasks and projects broadening your skillset making you more adaptable and well-rounded. The flatter hierarchy and close proximity to leadership fosters informal mentorship opportunities from leaders and experienced colleagues letting you learn from their successes and failures.
Small businesses do however have limited resources and budgets might restrict access to formal training. Learning and development may also be less organised, requiring you to proactively seek out learning opportunities and advocate for your development needs.
On the other hand, large companies often have established learning and development programs, workshops, and training sessions on various topics providing a clear path for your development. Defined career paths with mentorship programs and leadership training can propel your advancement within the organisation.
Cons to this system is that programs will be less personalised compared to what you might learn in a small business, catering to a broader range of employee needs, and may not always address your specific goals. With many vying for the same opportunities, securing access to top programs or mentors can be competitive.
Small businesses often offer competitive salaries based on individual skills and experience, but bonus structures and stock options are less common. The focus will likely be on profit sharing or performance-based incentives. Small businesses may also offer benefits and packages tailored to individual needs, but health insurance or retirement plans are less common. Paid time off can be generous and work-life balance could also be easier to maintain.
In large businesses, higher salaries are generally offered from the start, with established salary bands and defined bonus structures. They’ll likely offer more robust, comprehensive benefit packages, including health insurance, or retirement plans. However, these packages are often standardised and might not cater to individual needs.
Small businesses tend to offer more autonomy and flexibility than large companies, as they’re typically more open to accommodating individual needs, allowing you to have more control over when and where you work. Small businesses also foster better relationships with colleagues which can contribute to better work-life balance, however the downside is that close-knit teams may also mean that employees feel more pressure to take on additional responsibilities. While small businesses typically like to accommodate individual needs, small businesses may have limited resources to invest in extensive employee benefits or wellness programs. Employees also tend to take on multiple roles in small businesses, which could result in a higher workload.
Large businesses often have more formal policies and procedures in place to promote work-life balance, often offering benefits such as paid time off, flexible work arrangements, and childcare assistance. They also have more resources available to invest in employee wellness programs than small businesses typically will. On the other hand, large businesses can have highly competitive and stressful work environments, and long working days, leading to burnout and other well-being related issues.
It's clear that whether you end up working for a large corporation or a local startup company, both paths come with new opportunities and challenges, and ultimately, it’s up to you to decide where your values lie and what you want out of your job. Chasing high pay, the competitive benefits and consistent career advancement? Then working in big business might be for you. More focused on getting along with colleagues, avoiding bureaucracy, and day to day flexibility? Then you might prefer being in a smaller company. While we’ve listed out some of the key factors you might consider when planning out your next career move, there are countless factors, and complexities that will contribute to your decision such as your commute, how heavy your workload might be, or whether you feel you’ll get along with the management.
At the end of the day there are many factors, small and large that will contribute to the direction you take your career in, if you need any further guidance feel free to get in touch with any of the team here at Find and we’ll be happy to provide some career guidance.
Thanks for your interest in what we do here at FIND. We love meeting and helping amazing kiwis every day and will always do our best for our clients and candidates. We've been simplifying the recruitment game since 2008, so don't hesitate to get in touch if you need our help!
