Tuesday, September 30, 2008

Larger Company vs. Smaller Company

Another career choice you might face is whether to go work at a smaller company, perhaps a startup, versus a larger established company. If you have not worked for both types of organizations, here are some gross generalizations of the differences you can expect.

True to the stereotype, larger companies often do have lots of red tape and organizational inertia. It can take a long time and many approvals to get anything done, and you might find yourself fervently negotiating with various people to get the tools, accounts and machine permissions you need to do your job.

On the other hand, large companies often have larger budgets for hardware, software, etc., and can afford to throw more bodies at a problem (for better or worse). In most large companies you’ll see large numbers of business analysts and project managers, whose job it seems sometimes is purely to create and manage red tape (I jest… maybe). But they can also be a useful resource and help you deal with the red tape and bureaucracy.

Large companies also typically pay better, at least in terms of starting salaries. They also provide more opportunities for advancement just through their sheer size and natural turnover. However, large companies also typically have strict guidelines on things like salary raises and promotions.

Smaller companies are more flexible in many ways. They may not have as much of a process in place, which can be both good and bad. Such an environment may give you the freedom and speed to do your work more efficiently, but it can also lead to chaos without close coordination, especially as the organization scales up. Not to mention which, resources may be tight, in terms of both money and people.

So which type of organization should you pick if you have a choice? I’d recommend that you get experience in both types of companies. Only then will you be in a position to decide which environment is the right one for you.

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