Which is better for your career? A Startup or an MNC?

In the world full of MNCs, the culture of a startup is growing at lightning speed. MNCs, or multinational corporations, are established companies with offices in various countries while Startups are upcoming business ventures, in the growth phase and trying to disrupt the market.

Being an experienced individual or a fresher, choosing between a startup and an MNC can be really difficult. It is one of the most crucial decisions for your career. So to explain this, here are some parameters which will give you a clear idea on which organization to choose, an MNC or a startup?

1. Skill Development

It’s important that you develop skills while doing a job. Skills grow forever. The skills which you have give more options to choose where you want to work, not just that you are paid more if you're highly skilled.

Startup:

One can develop more skills within a shorter span of time at a startup. Besides technical skills, you will learn a lot from the experiences which will help throughout your life. Qualities such as dedication, teamwork, time management, cost management and so on are developed at a Startup. The skills acquired at a startup will help you grow faster in your career.

MNC:

The Skill development graph is much more moderate at MNCs than startups. At times you may not even develop skills at all for a certain period of time if you’re not working on any project and not willing to develop them on your own. Let me share an experience of one of my friends, he got placed in a reputed MNC and after 9 months from joining, the company put him on the bench for almost 2 years. Later when he decided to switch his job, he faced many difficulties because he was lacking the skills which were required for a candidate with 2 years of experience.

2. Roles and Responsibilities

It's not what position or designation you have in an organization that matters but what responsibilities you handle and what role you play. Some individuals like to look at the bigger picture and go beyond their assigned roles, to make the project successful while some prefer doing their part of the job without having to look into any other areas.

Startup:

At a startup, your work directly impacts the company's growth. You're entitled to handle multiple roles and responsibilities. If you do well, you will be praised and recognized by the top management, your colleagues and even your juniors. Your actions have a significant impact on the company.

MNC:

In an MNC, an employee may just focus on completing a particular task rather than solving a problem. It is difficult to make your mark in an MNC due to a large number of employees and the hierarchical nature of the organization.

I'd rather play a bigger role in a small organization than a small role in a large organization.

3. Work hours and Job Satisfaction

Job satisfaction depends on what you really want from a job. You won’t be happy to work at a place for long where you don't feel satisfied even if you are paid a fortune. How many hours are free after work may be one of the factors that may matter to you.

Startup:

At startups, the company needs dedication towards work. You need to work harder day by day for the company’s growth. The growth of the company totally depends on each and every team member, which might also require spending extra hours at the office. But after a point when you'll look behind, you’ll be satisfied to see what you’ve achieved. Not only you but also the company will be happy with your job. Plus, you will be constantly learning new things.

MNC:

You may have fixed timing for work. Let’s say 9 to 5, but, the job satisfaction will totally depend on the work you get and your manager. Other factors which may affect your job satisfaction maybe if you are learning new skills while working at the company, are you adding any value to the organization so on and so forth.

4. Organizational Structure

The organization structure of a company also plays a role in your decision to work there. For example, a startup is unstructured compared to an MNC which has a strict hierarchy. The skills required to work in these two types of organizations are different.

Startup:

A startup is an organization which is still in the growth phase. It is therefore not very well structured or semi-structured. It may also be competitive and challenging to work in a startup as you may have to take up many responsibilities at an average pay scale.

MNC:

Multinational companies are generally more structured. They have larger teams and a hierarchical structure. MNCs also may pay better than several startups and are more secure in terms of job security.

5. Scope of the Job

What is the exact scope of your job is also an important factor to consider. The scope of a job may differ depending on whether the organization is still growing or is well established.

Startup:

In a Startup, you may be hired for a particular job but you may have to look into various other fields too. As the organization is still in its growing stages, you are expected to solve a problem rather than just do your specific job.

MNC:

In an MNC you may be hired for a specific job and you are expected to do that well. So for example, you are hired as an accountant then you would have to do your duties as an accountant and not look into any other fields.

6. Growth and Opportunities

It is important to assess the growth opportunities at startups and MNCs before you choose to work at one. These two types of organizations are in very different growth phases so the growth and the opportunities are very different at Startups and MNCs.

Startup:

As stated earlier, you grow fast in terms of skills & knowledge at a Startup. Another perk you have at a Startup is that you get extra opportunities to get the lead position/designation in the company. You also get more opportunities to showcase your skills and knowledge. Some startups may pay less at the initial phase but later you’ll get big returns, there are possibilities of getting equity as well.

MNC:

At an MNC, there are several criteria you need to fulfil, you may need to wait for many years to be at a higher position as most of the companies determine your roles based on your experience in that field. Due to a large number of people, it may also be difficult to showcase your skills and knowledge in an MNC.

7. Wages

Wages are also an important factor for many individuals while choosing a job. The pay scale at Startups and MNCs are obviously different because of the difference between the availability of resources at both types of companies.

Startup:

Mostly you’ll get a lesser salary at a startup as compared to an MNC. But as the company grows, your value also increases, and maybe as stated earlier, you may get shares in the company. The increment cycles and the hikes are totally dependent on the growth of the company.

MNC:

You may get a higher salary in MNCs as compared to startups. Most MNC companies have fixed increment cycles, even the hike percentage is also pre-decided. This totally differs from company to company. So, a number of factors should be considered while making this decision.

8. Work Culture

Work culture is basically the environment that is created for the employees. It consists of how employees communicate with each other, how they communicate with the top management so on and so forth. Your experience in a company is largely affected by its work culture. Some companies are more flexible and some are strict.

Startup:

In a Startup, because of it’s small size most of the founding members are approachable. You can directly communicate with them, so you can get your challenges resolved earlier. It has more open culture, you may get more exposure of the company/product.

MNC:

MNCs are well-established organizations. They hire people for their expertise, you mostly communicate with your team members or manager. You are expected to do the task assigned to you without looking at the bigger picture.

9. Facilities and Amenities

For some people, having amazing amenities also matters. Not all organizations have great workspaces or facilities. Therefore, this factor should be considered before making a decision between a Startup or an MNC.

Startup:

At a startup, you may have to work in a small place with fewer amenities/facilities, maybe a room or co-working space. It may not have facilities like recreation halls or such other perks. But one should remember that many MNCs also started in the garage.

MNC:

Besides big paychecks, most of the MNCs have big and deluxe offices with many facilities like pantry, sports spaces and other privileges. An MNC may also have travel facilities, health care facilities and such other perks.

Conclusion:

In the end, it totally depends on you and what you want. If you would prefer getting a higher salary with slower growth and learning in the organization, you may prefer working in an MNC while if you wish to work at a lower pay scale but learning numerous skills each day, you may prefer working in a startup. Which job is the best fit for you and satisfies your objectives should be chosen. Ultimately, choose a company which will help you grow and will accelerate your career.