Working for a small to large organization is very different. The goal of this article is to describe factors involved and then pros/cons. In my experience I've seen organizations of all sizes 10+ people (small media DVD authoring company), midsize 350+ (eCommerce/CPG) and 200K (large Telco subsidiary). What you are looking for may be based on your preferences and stage of your career.
(Note: my experiences below have primarily seen from the lens of IT, Engineering, Compliance & Risk Management)
Definitions by Employee Size: Small (>100), Midsize (100 < 999), Large (>1000) (Gartner)
Division of labor (functional and volume): Work is divided by number of people. If you are a sole proprietor, you are responsible and execute everything. Conversely, the larger the organization the smaller the piece of work you own/execute.
Impact: Organization size impacts ownership and recognition. As the saying goes "success has many fathers but failure is an orphan." If you are truly brilliant you will be more "seen" in smaller organizations (more reward/growth); if you don't contribute anything, it will be harder for you to be "found" in larger organizations. The reverse of these are also true.
Bureaucracy: This is the amount of time it takes for an decision to be made or something to be completed, generally heavily correlated to company size. Some people thrive in bureaucracy, however, others deplore it, depends how you are built.
Compensation/Benefits: Generally, larger organizations have more resources and can provide larger compensation/benefits (there are a number of caveats and exceptions). For example, larger organizations (generally) can provide better retirement, education benefits and perks. However, getting in at the right stage of smaller/mid-size companies can be very lucrative (see Wealthfront list)
Work/Life Balance: Generally, smaller organizations are more demanding because of the division of labor is small. More is needed out of every person to keep the ship running (and hopefully growing). Larger organizations have more wiggle wrong, have more bench strength and generally have more resilience.
Career Growth: Large organizations generally have formal programs to help people stay at a company and transition into different roles (e.g., internship to full time, rotation programs, management training programs, succession management, etc.). Small organizations generally don't have those benefits, however, the smaller organization may have high-growth potential and you can work on projects to develops skills/functional expertise you would not be afforded at a larger one. Additionally, smaller organizations you will have a larger variety of experiences you can use for growth or parlay into other opportunities. In large organizations, you are focused a few (but maybe important) problems.
Job Security: This is rather elusive to pin down. Large companies can have very sizable layoffs and so can smaller firms. Generally, larger firms have larger financial reserves and can withstand larger macro risks (e.g., pandemic, financial crisis, etc.). Larger firms are more likely to "cut the fat" during lean times (as there has may have been wasteful growth that can be reduced more than smaller firms).
Culture/Environment: This highly depends on the leader/founder of the organization and history of the firm. Additionally magnified by smaller single-site locations. For example, when working at a small firm (10 people), we would all sit down on a couch to talk and maybe go to a local bar together. You know everyone's personal story and feels like a small family (this can be very good and very bad, depending on how the family interacts). In larger organizations culture may be more localized, but generally it's impossible to know everyone and their story; you have your set of people you interact with and social engagement platforms to understand more broadly. You may be very close to your team or department. There can be a theme that can carry through the entire organization (aggressive or conservative risk taking, fun or dull, fugal or opulent, etc.)
Summary: Division of Labor, Impact, Bureaucracy, Compensation, Work/Life Balance, Career Growth, Job Security, Culture/Environment are not the only important factors but some of the key ones. It's important to know yourself to help determine the right fit. What do you think? Make a comment below and share your experiences.
FAQs
Larger companies can mean bigger opportunities in terms of salary, role progression, professional development, networking and events… You know what to expect, what's expected of you, who to go to and where you can go next.
Does the size of the company you work for matter? ›
All in all, working for a smaller company allows you to gain responsibility and experience in a variety of areas. Is a smaller company the right choice for you? It all depends on your preferences as an individual, the level of responsibility that you want, and whether you adapt well to change!
Does the size matter in a organization? ›
Work/Life Balance: Generally, smaller organizations are more demanding because of the division of labor is small. More is needed out of every person to keep the ship running (and hopefully growing). Larger organizations have more wiggle wrong, have more bench strength and generally have more resilience.
Is it better to work for small or big company? ›
A large company may offer more opportunities for advancement, while smaller companies may offer more job satisfaction. Both types of companies may provide new challenges to help you develop new or improve existing skills.
Is a bigger organization size better? ›
You will have opportunities to go deeper into your role and specialize, explore a different function with a lateral move, or plan a promotion. Large organizations also typically have more formal processes around advancement, so you'll have a better idea of what you need to do to rise up.
Is a company with 500 employees big? ›
Defining Large or Small Companies
The general cutoff for “large business” is having at least $7 million in annual revenue and 500 employees. However, there are some exceptions that are mostly industry-dependent. For example, even if a manufacturing company has 1,500 employees, it's still a small business.
How does company size affect salary? ›
Large companies typically have more standardized and structured salary ranges, policies, and procedures for hiring and compensating employees. This means that you may have less room to negotiate your base salary, as it may be determined by your level, role, and market rate.
What is considered a large sized company? ›
For this indicator, enterprises are classified according to their size by number of people employed: 1 to 9 persons employed (micro enterprises), 10 to 19 and 20 to 49 (small enterprises), 50 to 249 (medium-sized enterprises), and 250 or more persons employed (large enterprises).
What is considered a mid size company? ›
Midsized companies are just that, medium in size. Not quite small but smaller than the larger organizations. These are generally categorized by revenue between $10 million to $1 billion and 50-250 employees.
Does the size of the business make a difference? ›
The answer is, absolutely. But what is the right size for your business? While the answer, more often than not, is bigger, it's important to remember that being bigger isn't an intrinsic value, but being the right size is. Some businesses rush headlong into growing bigger, and that can be a problem.
The average pay per employee for very small business with 20 employees or less was $36,912, according to the research. For small firms with 20 to 99 employees, it was $40,417. At medium-sized firms it was $44,916. And at large companies it was $52,554.
Is 1000 5000 employees a big company? ›
Organizations with 1,000 to 5,000 employees were deemed midsize employers while the companies with more than 5,000 employees were considered large. Survey respondents were asked to rate their employer, and if they would recommend their employer to others.
Do big companies look better on resume? ›
2) The brand's reputation adds value to your resume
Big companies are usually already well-known and successful in their respective industries, so having them on your resume could help boost your chances of obtaining future significant roles with other big players.
Do bigger companies have better benefits? ›
Large companies often have extra perks for employees, from subsidized gym memberships to book clubs and social events. While these shouldn't be the driving force behind where you choose to work, they do contribute to the overall experience and your day-to-day life in the workplace.
Why do large companies buy small companies? ›
Market Expansion: Acquiring smaller companies enables big corporations to quickly penetrate new markets or niche segments. Instead of starting from scratch, they can leverage the existing customer base and distribution channels of the acquired company to establish a presence in previously untapped areas.
What are the disadvantages of working in a small company? ›
Disadvantages of Working for a Small Business
Compensation may be lower – Small companies often can't afford the same pay and benefits as larger corporations. You might, therefore, have a lower salary, fewer vacation and sick days, and a less comprehensive health insurance plan.
Does the size of the organization matter when you consider risk? ›
The more employees you have, the greater the risk. But even if you're a sole proprietorship, you're still only human. At some point, you could put your own company at risk. Technology Risk is associated with the technological systems your business relies on.
What is the importance of company size? ›
The size of a business can have a major impact on the work experience it creates for the individuals it employs. Smaller companies may offer a more unique atmosphere or culture than larger companies.
Why working for a smaller company is better? ›
Small, privately owned businesses have much more freedom to take creative risks, let strategies play out and listen closely to its lower-level staffers. There's a relaxed dress code. Small businesses often are more flexible about allowing casual wear in the office. You'll enjoy greater flexibility.
