Working in startups vs working in MNCs are two different ball games altogether. The skills, growth rate, and culture – everything differs. But what should you really consider while applying for jobs in startups vs MNCs?
In case you are wondering, I am still in the early stage of my career but I got to experience both of them. I am working in an AdTech giant while I have freelanced for startups. In fact, I even worked in the Government sector while interning at Indian Railways. But let’s keep that story for some other day.
This post is about private sector – startups vs MNCs (multi-national corporations).
No doubt, I will not be considering huge unicorns or giants that have evolved now and still claim to be a part of the Indian startup community. I will be talking about small and early-stage startups where the number of employees is less and resources are less.
You might be interested in Tech Startups in –
Startups or MNCs – Depends On You!
Skillsets & Educational Requirements
MNCs often ask for limited skills or sometimes not even that. They look for graduates with higher degrees and prefer training the candidates rather than looking for existing practical experiences. Some mass-recruiters don’t even care if you are fit for the role. They need manpower and an army of graduates.
The companies that don’t ask for too many skills, often end up saturating your overall development.
On the other hand, startups never asked for my certificates, courses, or even degree. They look for experiences and proven skills. Startups want people to manage multiple things at the same time. They don’t even have time to train people.
Startups help you play different roles. This does not happen in an MNC.
Being a digital marketer, I will give an example of my industry.
In an MNC, a team will comprise of several people >
A: Build websites
B: Write content
C: Design graphics
D: Manage SEO
E: Handle security
F: Bring sales
G: Manage all these people
In a Startup, a single person might be doing several tasks >
Person A: Build websites, then write SEO-friendly content and fill it with graphics. Security and sales come along!
It’s sorted in large MNCs. Since the work is equally distributed, most of the people end up working within the time shifts. Unless your manager is, meh! :/
Due to the example that I mentioned in my previous point, work-life balance becomes a mess while working in a startup. You won’t even know if the client will call you at 10 PM on a Saturday.
However, some startups strictly follow work-life balance as a part of work culture. These companies are best!
This culture is often present in the well-funded startups that have grown up to a level to have a structured organization.
MNCs have an easier & secure life. In startups, you have to work really hard and the risk is higher, so is the learning.
Small Fish in a Big Pond or Big Fish in a Small Pond?
In startups you are big fish in a small pond while in MNCs you are nobody. There are thousands like you.
Ownership gives motivation. The impact that you create is a permanent addition to your portfolio and satisfaction. Contrarily to the salary that most people think about.
Most of the employees in MNCs have no clue what they are working on. Even managers and team leaders don’t care to mention that, or maybe they are clueless as well?
This is not an exaggeration but a reality because the information of projects is highly confidential in every company. They can’t afford to tell the details to every person who is not even a part of the team.
Individual impact is almost zero and the company would still function well without an individual employee.
On the other hand, employees in startups get a sense of ownership where every action has an impact.
To make this sense of ownership stronger, startups often use several tactics. I will be discussing that in my next point.
Salary & ESOPs
Salary is fixed in both the companies and it is discussed right in the beginning. However, the growth rate is much slower in MNCs as compared to startups.
According to Business Insider, you can expect a 40-50% increment in your salary if you are working with a startup.
Meanwhile, IT and MNCs have an average increment rate of 2-15% if we consider Times Report.
Kindly note that I have mentioned the reports of 2015 when the economic condition was good and stable. The current situation is worse and those figures are extremely vague. It depends on the industry, market, company, and even employee.
In short, startups often promote faster and give better salaries. Also, some of them allot ESOPs to their performing employees.
In case you don’t know about ESOPs and other Startup terms, check out: Startup Terms for beginners.
A small percentage of equity ownership is given to the employees working in a specific startup. It gives a sense of ownership and more employees retain with the companies.
Accessibility To Higher Authorities
Being into small teams, employees in startups have direct accessibility to the CEO, founder, or literally anyone. The exchange of ideas, experiences, and learning is more.
While on the other hand, there are several MNCs where the HR department is not instantly accessible as well. There are several processes to reach other people. Interacting with the founder is a distant dream for everyone.
Startups vs MNCs? What is better for you?
Startup jobs > more skills, work, learning, exposure, money, accessibility
MNC jobs > more stability, degrees, peace of mind
By now, you must be clear whether you are meant for startups or not.
I personally believe that not everyone is suitable to work for startups. This is the sole reason why I strictly mentioned on my homepage – “People who want to stick with MNCs, IT giants, or Government jobs are not really fit here. Hope you find a better place!”
I am a firm believer that job satisfaction matters. I have written a detailed blog post about job satisfaction.
MNCs prepare you for scalability & management while startups prepare you for entrepreneurship.
If you choose the path of working in a tech startup, I can help you search for some underrated technology startups.
Exploring Chopping Tech can help you out.
Here is a demo video for you.
Once you purchase the membership, just filter out the companies based on your interest and set the location as per your convenience.
Even if you are a freelancer or looking to work remotely then I have listed some strategies that you can use to approach for projects.
Check out: Get Freelance Work Using 5 Proven Techniques
I hope you find your dream job as soon as possible. Even better if you get it from Chopping Tech. We will send you some cool goodies! Let us be a part of your success story.