askST Jobs: Is it better to join a large or small company?

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Q: How do I decide between joining a large or small company?

A: Whether it is better to be a “big fish in a small pond” or a “small fish in a big pond” is a perennial question recruiters get from candidates, notes Ms Michelle Koh, managing director at executive search firm The Edge Partnership.

Ms Koh says she would advise candidates to consider the stage of their career, personal preferences, family circumstances and long-term goals in weighing up their options.

A larger firm might suit those who value stability and formal structures for growth opportunities, while a smaller one could offer exciting opportunities for those who want their work to have a more direct impact or wider influence on the business.

Those who like entrepreneurial environments could fit the bill as well, she says.

Meanwhile, for those yearning to stretch their wings, Ms Koh suggests that a larger company might have more opportunities for relocation and global exposure.

Yet, smaller ones can still offer opportunities for travel or working in different markets, though this would be very specific to individual job requirements rather than the norm.

Working for a small company does not necessarily mean there are fewer opportunities for career growth, says Mr Richard Bradshaw, chief executive for Asia at executive search firm Ethos BeathChapman.

Rather, the nature of the growth differs. For example, employees at small firms can operate more broadly, doing multiple roles to gain a wider skill set and exposure, he notes.

Additionally, those who outperform and become indispensable to a small firm stand to receive large bonuses, payouts or even a share in the company.

“On the other hand, larger firms may offer more structured growth opportunities with clear promotion paths and specialised training programs,” Mr Bradshaw says.

He also notes that it is mostly true to say that larger firms will pay higher on average, but this is not universal, adding: “Some positions in smaller businesses can be very lucrative.”

Ms Koh says such roles include those in technology start-ups or specialised consultancies in lucrative sectors, especially after factoring in share grants or bonuses.

However, smaller companies may offer fewer benefits, she adds.

Nonetheless, Mr Bradshaw notes that they may also have more agility in offering novel compensation structures or more customised ones.

Moreover, choosing to work at a small firm does not always have to be a setback for your career progression.

Mr Bradshaw says: “While larger companies might boast about their name recognition, the diverse skill set and hands-on experience you acquire in a smaller firm can be a treasure trove of value.

“Employers often seek out candidates who have demonstrated versatility and the ability to make a significant impact in a more intimate setting.”

However, Ms Koh advises those aspiring to a role in a major multinational at some point should do so earlier in their career because it can be harder to switch later if they have worked entirely in smaller firms up to that point.

“People with careers in large companies generally find it easier to move into a smaller firm if they wish to, so it is still good to have at least one role in a big brand or multinational company on your CV if you’ve never worked for one,” she says.

When it comes down to choosing between a more senior role with more responsibilities in a smaller firm, or a less senior role with fewer responsibilities in a larger firm, Mr Bradshaw says a senior role in a smaller firm may offer greater responsibility and autonomy.

This could also translate to more rapid advancement and broader exposure, though the career path may not be as clear or as structured as a larger firm.

He notes that joining a larger company comes with its own set of trade-offs too, including competition with colleagues.

“The competition for promotions and recognition can be fierce, and is driven by the hierarchical nature of many companies.”

Moreover, larger firms typically have more resources to weather economic downturns, so they may provide better job security, Ms Koh says – a view Mr Bradshaw shares.

However, this can vary, she notes, with major companies making mass job cuts in recent years due to over-expansion.

Smaller firms that are well-established and have a loyal customer base can offer job stability sometimes, Ms Koh adds.

Another trade-off Mr Bradshaw highlights is greater bureaucracy, with multiple layers of management and a lag time that can stifle innovation and agility.

Ms Koh says that performance expectations in larger firms are often very high, with more standardised metrics for performance on top of greater competition.

Meanwhile, smaller firms may expect their staff to be geared for more breadth in their work. They may provide more hands-on learning, but with potentially fewer structured learning and development opportunities, she adds.

On office politics, Ms Koh says that while some candidates have told her workplace politics in larger multinationals are worse, her view is that workplace politics come into play in any organisation and do not inherently worsen in these larger firms.

Nonetheless, she acknowledges that the more complex organisational structures in larger firms can sometimes lead to more office politics as employees navigate different levels of power, influence and authority.

“Power struggles may also be more pronounced when there are many individuals competing for promotions, raises and resources.”

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