Comparing large companies to small companies

Does size matter? Let’s examine some myths, upsides and downsides of working for large companies and small companies from the standpoint of career development.

First, we must understand two myths.

Myth No. 1. Large companies offer better job security. Job security is a myth; so size doesn’t matter. Employability security is not a myth. Continued employability depends on the skills of the individual, not on the company for which he/she works. If you only learn what your employer wants you to know, your skills may not be valuable to other employers.

Myth No. 2. It’s easier to “climb the ladder” in a large firm because there are so many more jobs available. As one moves up the organizational pyramid, job opportunities decline. There’s far more competition for managerial/skilled trade positions. Beyond performance, promotions depend on your

Jim Pawlak ability to become visible to those beyond your department. In a small firm, performance is the key because everyone is visible.

Large Company Upsides: 1. Multiple career paths provide options. Often, “newbies” aren’t sure of what path to follow. The sheer number of jobs at lower levels provides choice.

2. They do a better job of training their people. While they train employees in ways that will benefit their organization, there’s no doubt that some of that training (e.g. communications skills, project management, time management, Six Sigma, etc.) does build employability security.

3. Resources — Size means more money to invest in the things needed to get the job done. Those things include: people, technology, equipment, etc. The people-side is the most important because it enables knowledge sharing.

Large Company Downsides: 1. Most large firms are built on the bureaucratic, command-and-control culture (even though their recruiters will deny it). Employees take their seat on the corporate “bus” and move to another seat only when they’re told to move. Most of the low-level jobs involve “sticking to the procedures” rather than creativity and innovation. It can be difficult to own your job because you can’t connect the job with personal goals.

2. Silo Management. Some managers focus on their individual interests, rather than the best interests of the firm. Employees working for a silo dweller will find their careers stunted because silos insulate the department from outside organizational influence and change.

3. Making yourself visible isn’t easy. Developing relationships with those in other departments who can influence your career depends on your ability to manage your boss, tactfully play office politics and avoid turf wars. To increase exposure to colleagues and other managers, volunteer for interdepartmental assignments.

Small business is a totally

Small business is a totally different animal than the large firm because of its mentality: If the large business is an army, the small business is a tactical strike force.

different animal than the large firm because of its mentality: If the large business is an army, the small business is a tactical strike force.

Small Business Upsides: 1. Everyone is close to the customer, so the “Big Picture” becomes their daily picture. Employees understand how their jobs interact with those of others and the impact on the customer. This fosters teamwork and knowledge sharing.

2. Ideas are always welcome, particularly if they save time/money without sacrificing quality. The ability to implement change quickly distinguishes the small business from their larger rivals. If you thrive on change, you’ll like small business.

3. Performance really counts. Unless you’re working for a micromanaging entrepreneur, you’ll have the latitude to do your job — and more. Results drive rewards.

Small Business Downsides: 1. Don’t expect much training. Small business prefers hiring experienced people because it doesn’t have much money to invest in training. Most skill-building will be done on your time and at your expense.

2. While small business functions as a team, the team generally lacks bench strength. You’ll have to make time to do the mundane tasks as well as the important ones.

3. Limited financial resources can make the optimal decision unfeasible. “Settling for less than what could have been” can be a source of frustration for high achievers.