This post is all about working at a startup vs. big company.
Startup vs. Big Company
So you’re trying to decide if you should take a job at a startup or a big company! It can be a tough decision to make, with each opportunity offering a different set of experiences. As someone who has taken roles in both environments, and struggled with the decision, I understand the challenge of weighing both options and debating what's right for you.
New grads and the early stages of a career are a great time to experiment with what you like, and your career is no exception. It's hard to figure out what you want to do and it seems like theres endless options out there. When you started school a lot of the positions you're considering may not have even been considered jobs!
This post covers the pros and cons of working at a startup vs. big company, and the best questions to ask yourself when considering your options.
This post compares working at a startup vs. big company.
Should you work at a startup?
Startups are getting increasingly popular. Many entrepreneurs are testing their luck in the market, giving job seekers with little experience and a lot of passion a chance to fast track learning and take on more responsibility.
As someone just starting out in their career, I have greatly appreciated the experience I’ve gained at startups. They’ve taught me a lot, and given me opportunities I never would’ve had otherwise. As a new graduate, I became a Hiring Manager where I overhauled the interview process, and propose and implement new and exciting projects in my down time. Something that would’ve been impossible elsewhere.
Not only does that stand out on a resume, but it’s also an experience unique to you!
Pros of working at a startup
Responsibility.
Startups are a great opportunity to take on more responsibility as someone just starting out. With only a few employees on their payroll, startups need all hands on deck. Job descriptions are broad, and you’ll have your hands in a lot of things at once (the classic “wearing many hats”).
What this means is that you have an opportunity to participate in or lead a project and gain valuable experience in the process.
Impact.
Startups are exciting! Things change quickly as the company grows, and milestones are reached. At such a small scale, your work is directly related to the performance of the company.
My role at a larger organization was slow. My assignments didn't seem to have much real value visible from a big-picture standpoint. Comparing this to my time at startups, I’ve developed and implemented projects that are still running, having a measurable impact on company performance.
Startups give people without much experience a chance to have a tangible impact, where you feel like your role really matters.
Autonomy.
Because of the small number of staff, there’s generally less supervision in startups. This gives you the opportunity to come up with your own projects, and decide how to tackle them.
Learning.
While not a formal training with a manual full of how-to’s, working at a startup is a great learning opportunity. Startups have such a wide scope of work that you can gain experience in a variety of areas outside of your specialty.
This means getting thrown head-first into projects and learning on-the-go. The exposure you get to various job functions is unmatched to what you see at a big company. Especially if you’re just starting out in your career and not yet sure of your path, this is a great way to see what’s out there!
Relaxed work environment.
I used to come to work in a full sweatsuit. A sweatsuit. Need I say more?
Cons of working at a startup
Pay and benefits.
Evident by the name, these businesses are quite literally just starting. This means that while they may have a great product or service, they don’t have much money to spare.
People often take a cut in pay and benefits when coming from a more established company. In a bid to make up for this, you’ll find startups offering employees things like greater flexibility, free food, and a shorter work week.
Onboarding.
With any new job comes a learning curve, some more steep than others. The difference between joining a startup vs. big company, is that established organizations have a robust onboarding complete with resources, training, and support.
Comparing this to a startup I used to work at, the founder described it as “drinking from a firehose”. I was thrown into meetings where it felt like they were speaking a different language. Acronyms I’d never heard of, a product I didn't fully understand, and managers that were so busy there weren’t many opportunities for guidance.
Finally after a few weeks, I started to put the pieces together and make sense of the jargon I had been hearing. This was its own kind of training. Not necessarily better or worse than a corporate onboarding, but you’ve been warned.
Ambiguity.
In my experience, the greatest challenge of working at a startup is the lack of established processes, and ambiguity that surrounds you. One place I worked wasn’t even sure how to define their product yet!
That said, these things can also work in your favour. Lack of processes leaves room to innovate and try things your own way, and ambiguity lets you complete tasks as you see fit, and take on projects you’re passionate about.
Organization.
Since startups are a little less organized, they’re often on a more flexible work schedule and things can change quickly. One place I worked used meetings as more of a suggestion, sometimes canceling last minute or not showing up altogether.
If you’re going to work at a startup you need to be ready to roll with the punches, and adapt as things inevitably change.
When it comes down to it, there are pros and cons of each opportunity, you just need to find out what aligns with you best.
What will help you succeed at a startup?
- Flexibility
- Adaptability
- Willingness to ask questions
Should you work at a big company?
What do Walmart, Amazon, Apple, Costco, and AT&T have in common?
All large, highly structured Fortune 500 companies with hundreds/thousands of employees on their payroll. Essentially a complete 180 from a startup.
Pros of working at a big company
Resources.
Large organizations have a lot more resources at their disposal, like software that speeds up or automates processes that are done manually at startups.
If you’re just starting out, large companies might be more capable of supporting you to learn how to use tools and software, providing more opportunities for learning processes and the industry as a whole.
In a sense, it’s easier to learn since they’re using processes that are standard in the corporate world that you can get tangible experience with.
Job security.
Since they’ve been around for a long time, they tend to offer better job stability and security. You won’t be faced with the world suddenly not needing their services and the company going under.
You’re likely to have a steady and predictable income, and future career path within the organization.
Compensation.
Large corporations provide better pay and benefits than their smaller counterparts. Healthcare plans, as well as extras like company-wide corporate discounts, or physio/massages are perks of choosing a well established company.
Mentorship opportunities.
Where at a startup you’ll find one or two people that are more experienced, staff are generally scrappy people willing to put in the hard work to learn and perform.
Compare this to a big tiered company, and you’ll find executives and managers that have been around the block. They can be a great resource and can provide you with valuable insight into the job and how they got to where they are. Some companies even have established mentorship programs!
Employee development.
It’s getting harder and harder to find qualified employees, so when a company finds a great candidate they want to help them grow and develop within the role - hopefully to keep them around and bring them up the ranks.
They often provide supplementary training, or even a credit to apply to enroll in a course or program that will help you in your role. This is a great way to get more training and qualifications that will help you in your career at a reduced cost.
Structure.
Established companies have a bunch of processes in place that new businesses don’t have. This means a detailed job description, onboarding and clear chain of command. For people who like to know what to expect and have minimal surprises, a big company might be a better fit.
Cons of working at a big company
Slow pace.
If you like things to move fast, a big company may not be for you. Tiered management means things take a while to get approval, and changes happen at a snail's pace.
Three weeks into my job I was still waiting on access to documents that I needed to do my job. I got shuttled from person to person without any solution, making things more challenging than they needed to be.
Narrow scope.
While startups have you working several job functions at once, big companies have many people with specific roles. This leaves less opportunity to take on new projects or take on more responsibility.
You gain less broad experience (think surface level of a lot of things), but a deep understanding of one thing. If you know your path forward this may not be a problem, but if you’re still unsure of what area you are interested in, I would caution you against a narrow scope of work.
Less impact.
As opposed to startups that move quickly and you have a hand in the performance of the company, you’ll have to work your way up to more senior roles before you have the same influence at a large organization.
For some, this isn’t a deal breaker, but if you’re someone who wants to do more than just clock in and out, you’ll need to grind it out for a few years before you reap the rewards.
Still not sure which is right for you? Take the quiz below and find out!
Wrapping Up
When it comes down to it, you’ll have a gut feeling about what is right for you.
Both are great opportunities for learning (just different kinds of learning), and if you’re unsure, get exposure to both and see what you like! Co-ops are a great opportunity to do that since you’ve only committed for a short period of time.
Don't be afraid to pivot if something doesn't feel right. This is the time to explore and find what you're passionate about. Learning what you don’t like is just as valuable!
Ask yourself these questions when considering your choice:
- Consider the length of the position: co-op or full time?
- What kind of learning do you like? Self-guided or prescribed?
- What is most important to you right now? Pay? Benefits? Environment?
- Are you just starting out in the workforce, or more established in your position?
- What is your risk tolerance?
- What kind of environment do you want?
This post is all about working at a startup vs. big company.
What did you decide - Startup or Big Company? Comment below!
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