Companies are making some crazy decisions nowadays, one of which is hiring employees with startup experience over corporate experience. It may seem puzzling at first, but it looks like they are doing it for all the right reasons.
Startup vs Corporation
Big corporations are established, there’s no doubt about that. They have been around for a long time, and they’ve built a credible brand image. Startups, on the contrary, take time to get to that place and undergo huge growth and improvements before they reach a successful level. And there’s also a big difference in the working environments of startups and corporations.
Startups
Startups have huge risks associated with them. According to reports, around 75% of venture backed startups fail. There could be a number of factors that contribute to their failure, most of them being insufficient funding, poor management, and inability to adapt and evolve. At the same time, with high risks, there are high returns in cases of success.
A startup is an everyday battle. Working in a startup means you are required to play an extremely active role in its growth, while big corporations have already reached that level. Whether it’s a tight schedule or pressure on deadlines, working in a startup requires you to stay on your toes for the most part.
Working in a startup also means working within a small team. At a startup, you can expect to work with a team of around 10 people. That is mostly why employees feel working in a startup is more impactful than big corporations. The sense of making an impact and working closely with the rest of the members will also give rise to effective teamwork. If the team fails, you will fail, whereas in big corporations, an individualistic approach is mostly observed.
Although startups have the highest risk factor, this does not stop the innovation process. Startups are always looking to innovate and add something new. This works in their favor as constant innovation can aid in growth.
The learning curve in the case of startups is steep. It means you may have to be your own boss and take charge. You might not even be given training or be equipped with the tools required to improve yourself. It is common for employees to be working on several tasks at once.
Startups may not have the same budget available as larger corporates, but the environment makes up for the lower income. The main focus of startups nowadays is to offer a fun and modern culture for employees, and working equally as hard to produce amazing work.
Startups are tight on cash and are always looking for more funds, whereas big corporations are looking for profits. Yes, corporates can afford to pay for fancy talent recruitment softwares, but is that a good thing?
Startups are being acquired due to their value proposition and talents. Even without the fancy software, Startups are hiring people that are energetic, dynamic and talented. The experience isn’t the most important factor at a startup, as long as a candidate is ready to take risks, learn, innovate, and grow with the company.
Corporations
The major emphasis of big corporation is on profits. Once a business grows, it becomes risk-averse. Successful businesses know that with every risk, failures are likely. With big names and an already well-established reputation, it becomes essential for corporations to avoid taking big risks and strive to maintain their success.
Big corporations have massive funds, whereas startups always have insufficient funding. Thus, their main focus is on generating profit and they have abundant resources for advertising, hiring and training.
Working in a corporation means working with big teams. This sometimes leads to feeling invisible and is one of the main reasons why employees may be intrinsically demotivated. On the other hand, there’s more job security in big corporations as compared to startups. Employees stay in big companies for a longer period due to the value attached with them.
Moreover, due to a strong foundation and good terms with other companies, big corporations are less likely to fail and go bankrupt as compared to startups. Even if a project or two fails, the damage can be easily controlled, while in the case of startups, a failure may shut down the entire company.
In big corporations, work is usually reactive. Hence, working there can be less demanding as compared to a new business. In case of startups, proactive work approach is critical to achieving targets.
In a corporate environment, training is a part of the job and employees are equipped with the necessary tools to effectively carry out their job. Thus, the learning curve here starts steep but tends to flatten quickly.
An individualistic approach is also observed in big corporations. As there is a large number of employees, people tend to feel overshadowed and their own job achievements may seem insignificant due to high competition.
A safe work environment and additional perks are some of the many advantages of big corporations. These companies have massive budgets and may also provide insurance to their employees.
Since big corporations are more established, employees may feel a stagnant growth rate as most of the time, companies are working to maintain their established reputation. For instance, while Walmart does try to innovate from time to time, it remains true to its basic purpose of selling goods.
Employees in big corporations may feel their growth is saturated and seem to be at a certain designation for longer periods, whereas with startups, talented people have ample opportunity to climb the ladder regardless of experience.
Traits in an Employee Working in a Startup
Here a few traits can be seen in an employee working at a startup due to the working environment:
1. Greater Sense of Responsibility
People in startups are used to working in smaller teams as compared to big corporations. This, in particular, adds a sense of teamwork and a greater sense of responsibility because in case the team fails, you fail! Employees in startups may even have to work on several tasks at once and be their own boss. This feeling of empowerment puts some added pressure to perform better.
2. Adaptability
Employees working in startups adapt better to different environments. Since startups allow you to handle different responsibilities at once, employees become more flexible and adept at different types of tasks. They will also be able to perform in changing work conditions.
3. Better Risk Management
Startups are prone to higher risks and failure than big corporations. With their drive to grow and make a name for themselves, they often take leaps of faith, which may or may not work in their favor. Thus, employees working at startups have had the experience of working in adverse circumstances and are better equipped to handle critical situations and manage risk. These employees learn to be proactive and flexible.
4. Teamwork
Working in a small team inculcates a sense of teamwork. When you have a small number of people in a group, each person has an influence on the others and everyone’s victories and failures are combined. That is why it becomes critical for employees to move on pace with the rest. One person’s achievement is an achievement for the rest.
5. Better Problem-Solving Approach
Employees working at startups are action-oriented and have a better problem-solving approach. Since startup companies are pretty much on their own, employees are allowed to experiment if it adds value. Employees can step in and use their skillset as they deem fit. This flexibility and empowerment add to their problem-solving skills.
6. Open to Opportunities
Employees working in big corporations stay in one position for extended periods. The way to the top is slow and employees are used to the monotonous job. In case of startups, employees are subjected to different tasks and a more flexible approach is practiced. New opportunities are availed, and employees may undergo job rotation constantly due to lower budgets for hiring. Thus, such employees are a better fit for adopting and trying new challenges.
Final Thoughts
An employee with extensive job experience will, without doubt, prove to be an asset for a company, but with the changing trends and mindsets, talent has topped the list of requirements in a potential employee. The skillset and the art to tackle adversaries that may arise on the job have become a crucial trait to look for in potential candidates. While the number of years on the resume is a great way to impress an employer, only the right amount of talent will bag the job.
Since startups are always experimenting regardless of the risks involved, their employees are better equipped to handle different conditions and are open to opportunities. That is why hiring someone with a startup experience over a corporate one will prove to be more successful for your company.
