Should you work at a big company? A small company? An in-between company?
It’s not the only question you should ask yourself when looking for a new job. But it’s more important than many job-seekers realize…and, for that matter, many employers. Most would agree that there are big differences in terms of culture, scope of work, and individual responsibility between boutique private equity firms and big investment banks, for example. The same is true in many other industries.
So, which is the best fit for you? Read on for the pros and cons of each.
Table of Contents
Pros of Working at a Bigger Company
- More Opportunities for Advancement
Big companies tend to offer more opportunities for advancement to those willing to take them. Employees who thrive in this type of environment tend to be proactive, to speak up in meetings, and to volunteer for additional work whenever possible, according to the Golisano Institute.
- A Wider Variety of Projects
Big companies tend to have more going on at any given time. That creates more opportunities to work on projects you’re passionate about, instead of work that just “has to get done.” And, of course, employees who enjoy their work are less likely to burn out before they’re ready to move on.
- More Mentoring Opportunities
Larger employers typically have more mentoring and mentorship opportunities for early-career employees. They may also have affinity groups focused on specific identities or networks, helping employees from diverse backgrounds fit into a culture that was likely created (and might still be managed) by people they don’t identify with.
Cons of Working at a Bigger Company
- More Potential to Get Lost in the Crowd
Big companies are, well, big. It’s easier to get lost in the crowd here, which is why it’s so important to be proactive, speak up, and volunteer for more work.
- More Layers of Bureaucracy
Big companies tend to be more bureaucratic. They have more “approval layers” and are thus slower to make important decisions. This can be stifling for employees who like to move faster and test their ideas.
- Potential to Get Passed Over for Promotions
With more peers, you may have more competition for more senior roles. You can always move on if you’re passed over for a promotion, but it would be better not to have to worry about that in the first place.
Pros of Working at a Smaller Company
- Easier to Reach the Top Decision-Makers
Smaller companies’ leaders tend to be more accessible than their counterparts at big companies. If you have a great idea, it’s easier to air it out.
- Potential for More Responsibility
You can take on more responsibility at an earlier stage of your career and have more impact on company activities in a smaller setting. Of course, that makes it harder to “hide” from tough situations.
- Higher Growth Potential
You’re less likely to get passed over for a promotion at a small employer. This is especially true if your small employer is growing quickly.
Cons of Working at a Smaller Company
- Potential for Fewer Advancement Opportunities
While getting a promotion might be more likely in a smaller company, such opportunities may come around less often, especially if the company is not adding employees.
- Possible Personality Clashes
It’s really important to like the people you work with at a small company. Otherwise, your workday could be miserable.
- Less Interesting Work
Less variety of work means fewer opportunities for interesting work. Hopefully, you’re passionate about your small employer’s business, but if not, you could get bored quickly.
Does Size Really Matter?
Every employer has unique attributes. It is too simple to say that all large employers or all small employers are alike, even if we could agree on definitions for the two.
Yet, as we have seen, small employers tend to have certain things in common, just as large employers do. If you are in the market for a new job and are considering where you might best fit in, keep them in the front of your mind.
