Big vs. Small Companies
Which kind of organization suits you best?
I met a friend at the weekend who is a stage in her life where she is thinking about what her next steps are going to be. Her two children are getting older and becoming more independent, her husband is occupied with their house renovations and his own demanding role in IT, and she is not sure whether her current role is giving her enough fulfilment or space to grow. She works at a large commercial company, whereas I work for a small not-for-profit company. I have also worked in big organizations, and my chat with her got me thinking about how large and small companies serve different needs, and to some extent, different personality types. There is no right or wrong answer, and people have flourished in both large and small companies and as independent business owners and consultants.
When you are in the first stages of thinking about your career and your next steps, company size and company offerings can play a huge role. I do believe as well that different personality types can suit working in different organizations, as I have outlined as examples below:
Independent and self-motivated people:Â These individuals may prefer to work for small companies where they have more autonomy and flexibility.
Team players and people who thrive on collaboration:Â These individuals may prefer to work for large companies where they can work with other people on complex projects.
People who are risk-averse:Â These individuals may prefer to work for large companies that offer more stability.
People who are ambitious and want to move up the corporate ladder:Â These individuals may prefer to work for large companies that offer more opportunities for professional development and advancement.
For me, there were so many things I really appreciated about a large organization, but my personality, my skillset and my preferred ways of working make me much better suited to a small not-for-profit organization. It took me nearly 15 years and lots of experimentation and reflection to get to this point, so don’t expect any overnight decisions to happen. You may want to try different business sizes yourself to work out which is going to be best.
When choosing a company to work for, it is important to consider the size of the organization. Large and small companies have their own unique advantages and disadvantages, and it is important to find a good fit for your personality and career goals.
Pros of working for a large company:
More resources and opportunities:Â Large companies have more resources to invest in their employees and products. This can translate into higher salaries, better benefits, and more opportunities for professional development and advancement.
Greater stability:Â Large companies are generally more stable than small companies, especially during economic downturns. This is because they have a larger customer base and more diversified revenue streams.
A chance to specialize: Larger companies can invest in specific training and develop to help you become the expert in a certain field and have the space within the company to focus on your area of expertise, rather than working across multiple projects.
Well-known brand name:Â Working for a well-known company can boost your resume/CV and make it easier to find a job in the future.
Cons of working for a large company:
Bureaucracy:Â Large companies can be more bureaucratic than small companies, which can make it difficult to get things done quickly.
Less autonomy:Â Employees in large companies may have less autonomy and flexibility in their roles. This is because there are more layers of management and more established processes and procedures.
Feeling like a small cog in a big machine:Â It can be easy to feel lost in the crowd at a large company. This is especially true for new employees.
Revenue pressures: Quarter-end, year-end, pipeline planning, it all adds up to specific pressures on the bottom line.
Pros of working for a small company:
More autonomy and flexibility:Â Employees in small companies typically have more autonomy and flexibility in their roles. This is because there are fewer layers of management and less bureaucracy.
Closer relationships with colleagues:Â Employees in small companies tend to have closer relationships with their colleagues. This is because there are fewer people, and everyone is more likely to know each other.
More opportunities to wear different hats:Â Employees in small companies may have the opportunity to wear different hats and take on new challenges. This can be a great way to learn new skills and develop your career.
Mission and purpose: Often, small companies are driven by a mission and serving people within a certain community, and there is less focus on increasing revenues and cutting costs.
Cons of working for a small company:
Fewer resources and opportunities:Â Small companies have fewer resources to invest in their employees and products. This can translate into lower salaries, fewer benefits, and fewer opportunities for professional development and advancement.
Less stability:Â Small companies are generally less stable than large companies, especially during economic downturns. This is because they have a smaller customer base and less diversified revenue streams.
Less well-known brand name:Â Working for a small company may not boost your resume/CV as much as working for a well-known company.
And let’s not forget business owners! Looking at those who own businesses, an article by the excellently named Journal of Happiness Studies looked at business growth and whether there was a positive relationship between the size of the business and the business owner’s wellbeing. After surveying over 1,200 business owners in Sweden, the authors concluded that there is no statistical significance of association between the size of the business and the owner’s emotional wellbeing, but overall financial satisfaction has a marginal positive link to general life satisfaction. However, while larger businesses are great from a financial perspective, the stress around time pressure effectively cancels out those positives.
Ultimately, the best way to decide whether to work for a large or small company is to consider your own personality and career goals. If you are not sure which type of company is best for you, talk to people who work in different types of organizations and get their perspectives.
References:
Fors Connolly, F., Johansson Sevä, I. & Gärling, T. The Bigger the Better? Business Size and Small-Business Owners’ Subjective Well-Being. J Happiness Stud 22, 1071–1088 (2021). https://doi.org/10.1007/s10902-020-00264-2. https://rdcu.be/dnIsz.
Braccio Hering, B. Pros and Cons: Working for Large Companies vs Small Businesses. https://www.flexjobs.com/blog/post/pros-cons-working-large-companies-v2/#:~:text=Choose%20a%20large%20company%2C%20and,same%20position%20year%20after%20year.
Glassdoor. Small vs. Large Companies: Ten Differences Between Working for the Two. https://www.glassdoor.com/blog/small-large-companies-ten-differences-working/
Doyle, Alison. Pros and Cons of Working for a Small Company. https://www.thebalancemoney.com/pros-and-cons-of-working-for-a-small-company-2058509
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