Start-up vs. Job – Question that doesn’t find the right answer

When comparing corporate and startup jobs, it is observed that both have their unique advantages and disadvantages. Startups are popular among freshers and even seasoned candidates for providing new experiences and opportunities.
However, many people prefer to work in well-known companies and go for stable jobs. But these days, most freshers don’t care about stability and are more determined to experience the growth that startups offer. With massive investments and startups raising massive funding, the playing field has leveled when it comes to salaries. Let’s check this article Startup vs. corporate job: What’s best for your career?

What is a startup?

Startups are companies that revolutionize markets and change the course of history on a large scale. Startup founders envision creating a product that the company needs but hasn’t yet produced, leading to dizzying speculation that leads to an initial public offering (IPO) and enormous return on investment. They focus on creativity, trying to solve current product shortcomings or develop new classes of commodities, overcoming long-established ways of thinking and doing business for different markets.

Startup culture

A startup culture is often one that evolves quickly and values collaboration and ingenuity. Startups are usually smaller than large organizations, especially in the early stages of growth, which allows employees to form close bonds and share ideas openly. If necessary, they can change course to meet development goals. They are less formal than large corporations and often focus less on hierarchy among team members.

Before deciding whether to join a startup or a large company, it would be best to consider key factors such as startup vs. great company pay, culture, scale, growth, and opportunities to name a few. These aspects can help you determine which culture is a better fit for you. Before asking “How to get a job in an MNC” or “Does a startup job look good on a resume”, you need to be aware of the pros and cons of both setups?

Advantages of startups

The below benefits of working in startups will be a suitable answer to the question – “Why would you want to join a startup?”

• A large scope of work: The advantage of working in startups is that startups provide a lot of options for different fields of employment. They can be your best choice if you want to quickly increase your skills in various domains. You’ll learn more about marketing and information technology, skills you never thought you could have.

• High-value property: Getting access to potentially valuable capital before an IPO is valuable for startups. Many software professionals have been fortunate enough to initially secure stakes in a startup and benefit from the businesses experiencing massive success.

• Leadership options: Startups outperform multinationals in terms of improved productivity and individual development. Compared to a large organization with thousands of employees, startups offer employees more opportunities for internal growth and management opportunities. Since you have a better chance to stand out and be rewarded for your efforts, moving up the career ladder is easier and faster with startups.

• Career growth: Startups open up opportunities for rapid advancement and take career paths to the next level. You will learn to overcome challenges, expand your abilities, be extremely creative, and tend to take risks to achieve the best possible results. People who want to stand out from the crowd prefer startups, some of which succeed as top multinational companies, while others become experiments. But despite the uncertainty, the business has significant expansion. The main difference between a business and a startup in terms of career growth is that when you choose a startup, you can advance professionally by learning new concepts and applying them as the startup grows.

• Work culture: Startups employ fewer workers compared to multinationals. As a result, it is easier for you to build relationships with co-workers and experience a sense of belonging. Startups typically have a less formal organizational structure with a relaxed work environment and flexible working hours, where employees often work in casual clothing. The most important thing in a startup is hard work, putting in extra hours, and delivering a product based on the customer’s requirements. Being in such a dynamic and fast-paced environment can be quite exciting and full of learning opportunities.

• High salaries from the start: Growth will be significant in the long run along with a high-salary position. Your ability to progress professionally will mostly depend on the role you are hired for, how hard you work and what interests you personally. Startups offer benefits such as flexible working hours, free meals, and employee discounts. Startups may be a better fit for you if you enjoy using the latest software or technology, as employees at more established organizations may have limited access to state-of-the-art equipment.

Disadvantages of working at a startup

• No specific job role: Individual job roles in a startup are not precise or clearly defined. In a startup, you have to hold many job roles simultaneously. So you can replace an analyst, an associate, or any other position that would be needed depending on the circumstances.

• Smaller structure: The minimal structure is another characteristic shared by emerging and expanding startups. There are fewer well-defined jobs and responsibilities, as well as how different tasks are assigned to employees.

• Job insecurity: The most obvious downside to going from a corporation to a startup is job insecurity, even though you may get more recognition and direct feedback. The salaries of the employees are lower and the salary increases depend on how the business is doing. Most startups, especially those in the tech sector, don’t last long as new technological developments and ideas decimate their industries. Therefore, even if you enjoy what you do, you might not stay there very long if you work for a startup.

Corporate Culture

Corporate environments, on the other hand, are often characterized by a more structured, formal approach to corporate culture. Because many corporations employ thousands of workers, it is not uncommon for employees to be unfamiliar with colleagues outside their immediate teams or departments.

With years of experience, corporations tend to have specific procedures, protocols, and guidelines that govern day-to-day operations. This rigidity can sometimes have the effect of slowing down innovation processes.

Advantages of a corporate environment

• Specialized job role: Established businesses have clear job descriptions that allow individuals to focus on their primary attributes. Specific duties and well-defined functions are typical of executive roles, which is a key advantage of working in a multinational company. You are aware of the demands the position places on you and when they must be met. This environment would be an excellent fit for individuals who find that not having specific plans, tasks, and deadlines for work can be stressful.

• Stable salary and benefits: Large corporations are known for paying their employees a steady income and offering special benefits. The earnings prospects are considerable for multinational companies. In addition to a fixed income, additional incentives for meeting goals, and a timely evaluation method. Startups are often high-risk but high-reward, while multinationals provide employees with a sense of permanence.

• Access to mentoring: The Enterprise Workplace facilitates learning from industry mentors. You will often have a direct boss in a professional context who will be your guide and role model. They will mostly mentor you through job duties and training procedures.

• Work-life balance: You will probably love working in a corporate environment if you prefer a 9 to 5 job. In the case of multinational companies, the operating hours are set. Your life will be well-maintained and organized and you will have plenty of time to spend with your family. In addition, even if you take a short vacation, the business will be business as usual.

• Job security (stability): Another benefit of working in an MNC is that the jobs have comparatively better security compared to startups. You can feel safe knowing that the company you are working for is or will be profitable because it is likely to be more stable and has been around for a long time. You don’t have to rely on quick success or money rounds and discussions. Startups only have a short time in the market – a few years – so they have to change their product to meet consumer demand.

Disadvantages of a corporate environment

• Slower career growth: The most significant shortcoming of multinational companies is how little room there is for professional development within the company. You will not advance in the corporation or rise to a better position until you have remarkable talent. In a corporate environment, employees almost always prioritize completing a task over finding a solution. As more people review the work, the program can take up to several months to deploy. While startups are known as fast-moving and agile companies that achieve goals quickly.

• Complacency slows you down: The corporate sector may not be for you if you like to try something new daily, as the work is centered on your specific roles. In a more established company, you are less likely to venture outside of your normal routine. Even if you contribute some value to a multinational company, your efforts will go mostly unrecognized when you are at the entry level. Since you are only required to do your job, you would have minimal impact on the company’s productivity.

• No new learning skills: In a multinational company, your work and job role would occupy a small part of the progression of a larger company. Over time, there won’t be many variations in your core work, and the knowledge graph can quickly flatten out. Compared to their corporate counterparts, who are more concerned with compliance, technology startups are more likely to use modern project management systems because they place more emphasis on efficiency.

Choosing which path

To understand which company you want to work for, you need to ask yourself a few questions:

• Do you want to be involved in all aspects of your work and build something?
• Do you want to work with passion or for routine?
• Do you prefer a visible role with lots of responsibility or a less visible role with defined tasks?
• Do you like to be part of the decision-making process and take risks, or do you prefer to have people decide for you what to do?

Corporate work can give you more stability, it’s a great place to structure yourself and get on-the-job training with a very structured onboarding process. A startup that values communication and creativity will give you more overall experience building a company and embracing change, and give you a chance to develop your skills!

Final words

Both corporate and startup jobs offer incredible salaries today, so one has to ask what is more important to them personally when allowed to choose between a new startup or a multinational company that has been around for decades. Just as important as finding the right position for you in the company is making sure you fit into the company culture. Just like people, businesses have a personality called corporate culture. If you believe in your company’s mission and share a similar approach to work as your colleagues, there are more chances to succeed.