Choosing What is Best for You: MNCs, SMEs or Startups

When choosing a job, it’s important to find the right fit.

Within the area ofyourchosen career, employers come in all shapes and sizes. Although theycan be generallyclassified into multinational companies (MNCs), small ormedium enterprises (SMEs), orstartups, you will quicklyfind each companyhas a characterand disposition ofits own. It is important when you begin considering job offers — finding the right workplace is vital when you’re just first setting out your career.

Large firms that usually have one global head office and maintain facilities and assets in numerous countries other than its home country. MNCs are well-known companies with large operations bases and revenue. Some well-known organisations include Nestlé, Proctor & Gamble and Visa. MNCs tend to have strong and reputable brand value, and many graduates tend to attach a certain level of prestige to working for an MNC.

Opportunities As MNCs maintain a presence in numerous countries, there will be opportunities to travel and work around the world. This would give you the chance to work with diverse colleagues of different nationalities and backgrounds. Moreover, you can shift between departments within the same company, enabling you to update your résumé without having to search for a new job. Career progression is also fairly straightforward and you’ll be able to see the paths of progression ahead of you.

Benefits MNCs, with theirlarge revenues, can afford to spend. Due to this, theygenerallyofferexcellent benefits, from healthcare to corporate discounts. You may start off with a larger paycheque as well.

Upskilling If moving between departments does not interest you, you can still hone yourskills and masteryourtrade as job scopes are more likely to be fixed. You can cultivate your expertise in one area of work as there will be training and upskilling provided as well. You will also be surrounded by successful experts who you can look up to as role models. Culture and opportunities Maintaining a shared culture is challenging in a company that sprawls across several countries with different values. As employees also tend to integrate into the company’s culture, some aspects of your individualism may get lost as rules and regulations are much stricter. While there are opportunities forcross-departmental tasks, mostemployees would find themselves moving within their own job scope with little reason to interact with other departments.

Red tape Standard operatingprocedure (SOP), workflowand structure can be inflexible in a global organisation. The different levels of management also leave many MNCs resistant to change, which results in less autonomy for employees. On top of that, if you need approval for a decision or project, it may take some time for it to pass through all the required processes.

Job satisfaction As one individual in a massive organisation, it can be hard to see how your work impacts the company. It can also be discouraging if you like to see the results of your work, leadingto feelings offrustration and disconnect. Recognition is hard to come by and you may even end up feeling like an expendable cog in a large machine.

Competition Graduates are not the onlyones coveting positions in MNCs — so are experienced jobseekers. As such, competition for positions is fierce. Competition within large companies can be just as intense, if not more. Missteps may be used against you and, with countless jobseekers raring to join MNCs, a single mistake may endanger your career with the company.

Usually with either less than $100mil in yearly sales turnover or a total employee headcount that does not exceed 200 people, SMEs in Singapore contribute to approximately 50% of the country’s GDP and provide some 70% of employment. Today, graduates and jobseekers alike are as keen to work in an SME as an MNC.

Experience Job roles are less specific and involvement in all areas of an SME is much higher. You may be required to take part in cross-functional tasks that are not part of your job scope. This exposes you to a range of tasks to develop various skills in different areas of expertise and also allows you to gain knowledge and insight beyond your role that can boost your résumé in the future.

Flexibility Some SMEs can offer alternative work arrangements, such as flexible workinghours. SMEs also tend to be less stringent on dress codes. Job preferences and personalities are taken into account, and you can use that to your advantage, such as exploring your own working style.

Culture and environment Work culture in SMEs tend to be open with flat hierarchies and employees are usually encouraged to communicate with senior management, even as fresh hires. The environment is also more casual, yet still driven and integrated. Deep bonds are common in a smaller company, so expect to join a close-knit team of colleagues. Most managers would know employees by name and there are more chances to interact with colleagues from different departments.

Job satisfaction Working in smaller companies gives you the unique chance of taking ownership of your work even as you drive them forward. Moreover, as your work is valued, your confidence in yourself and your abilities will rise, leading to better job satisfaction and enabling you to aim higher career-wise.

Resources and benefits Unlike MNCs, SMEs do not have the resources to bring on more manpower. Due to this, you will most likely find yourselfjuggling a varietyofdifferent jobs regularly, leading to a workload much bigger than those generally found in MNCs. At smaller companies, you will have to settle for fewer benefits than what you would be able to find for the same job scope in a larger organisation, such as retirement plans.

Training SMEs do not usually offer training programmes and you can expect to learn on the job. If training is offered, there is a chance it would be informal. Therefore, you would need to be proactiveand possessa streakofindependenceifyou wantto pick up knowledge and skills in smaller companies.

Career progression and growth Although there may be fewer employees in a company competing for a promotion, the fact that the company is small means the number of positions available is limited. There may be fewer opportunities and growth can be restricted — assuming the company even grows at all. If there are no plans for company growth, you may well find yourself in the same position years down the road. SMEs that cannot grow usually end up closing down in the long run, leaving you unemployed.

Small and unknown MNCs are known and respected, which can be useful when you begin looking around for your next role. However, if you come from a small company, you may have to talk about the company instead ofyourselfand presenting your achievements.

Newlyincorporated businesses thathave nothitthe five-yearmark, startups depend on scalable business models. Theyhave established a reputation for offering goods or services that cannot be found anywhere else on the market. Most of the time, the people who join startups are among the most talented and respected in their fields.

Creative and innovative The workenvironmentin startups tends to be innovative and dynamic, always looking to break into new territory. You will have the space you need to create and innovate. The next new fresh design or concept could come from you.

Flexible Hierarchyin startupsisnotveryrigid and tend tobe flat. They also offer flexible working hours and a casual environment. You will also have flexibilityin yourapproach to work— how and when you do your work are up to you so long as you can deliver. As there are usually only a handful of employees in a startup, interactions with colleagues are also very casual.

Career progression and recognition Although your managers or the founders of the startup will guide you along, you will most likely work without supervision in a startup. Startups are also excellent training grounds as you will have to learn how to do almost everything, especially if you’re planning to pick up a senior management role in the future. You will likely be hired for the skills you can bring to the table but, as startups expect more than that, your learning curve will be. However, the chance of recognition for a job well done is high, especially in startups.

Opportunities and experience Startups grant you the opportunity to forge your own way rather than follow an established path. Startups are about your skills and don’t require experience as you’ll learn more on the job. Not only that, but you will also have the chance to work with other skilled entrepreneurs.

Job satisfaction and ownership In such a small company, everybit ofeffort from you counts. You will also have a larger sphere of influence than in an MNC, or even in an SME, and your performance will have a direct impact on the startup. You may even get the chance to work on an entire project by yourself and will get all the credit if it is a success. Job stability, structure and risk Many startups don’t succeed for a variety of reasons, such as facing bad economy. Startups are also known to switch strategies at the drop of a hat, which could lead to disorganisation and miscommunication ifcoupled with firsttime founders. Startup founders mayhave exceptional ideas and plans to succeed but this does not make them either good or experienced leaders.

Remuneration and benefits SMEs do not usually offer training programmes and you can expect to learn on the job. If training is offered, there is a chance it would be informal. Therefore, you would need to be proactiveand possessa streakofindependenceifyou wantto pick up knowledge and skills in smaller companies.

Career progression and growth Your salary will not match the long working hours and commitment to working for a startup. Moreover, if there are gaps in resources or funding, you may find yourselfwith lower or even suspended salary for a time. However, there are certain perks to offset this issue, such as the chance to work from home and stock options.

Work-life balance There is no such thing as a work-life balance — if you want to succeed with your startup, you will have to eat, sleep and breathe it. Bringing a startup to life requires a level of dedication and commitment not found in larger companies and, more often than not, the startup will take up all your time. Moreover, because of low employee headcount, you will find yourselfworking long and odd hours, perhaps even on weekends. Burnout from working in this high-stress environment is highly possible.