I thought I was a startup guy... I thought I'd hate working for a big company...
I was totally wrong, and here's why.
(NOTE: I'm referring to really, really big Fortune 500 companies and not "Office Space"-like mid-size companies that have only 1,000 workers.)
I was totally wrong, and here's why.
(NOTE: I'm referring to really, really big Fortune 500 companies and not "Office Space"-like mid-size companies that have only 1,000 workers.)
#1. Startups Exaggerate.
I'm a startup founder myself. I've also worked for startups. It's time to stop drinking the Kool-Aid. Giving someone a ping-pong table and PS3 in a games room, so they can take a break between 5 PM and the night shift, is not a great benefit.
It is also way cheaper than providing, say, a pension.
Startup people oversell the excitement of a startup culture. Sometimes, that's used to keep employees working hard.
It is also way cheaper than providing, say, a pension.
Startup people oversell the excitement of a startup culture. Sometimes, that's used to keep employees working hard.
#2. Total Compensation is Often Higher
To illustrate the problem here, a startup will lure you in with a games room and a ping-pong table. (Classic move.)
That ping-pong table and PlayStation cost a fixed fee of maybe $800. A big company could add that much per month to your pension plan.
While the stock options may be worth something for your startup, generally speaking, the lion’s share goes to the founders. Often, the stocks are worthless in the end. In comparison, large companies have stocks that tend to grow steadily. So any stock-based incentive is a more stable bet.
Even if you get a six-figure payout from the stock options in a startup, you must factor in all the overtime, lack of pension, lack of vacations and stress. Startups aren’t sold overnight.. It often takes about a decade. So after a decade of working twice as hard, a six-figure payout may not mathematically be worth the pension, stock benefits and vacation time you'd have accumulate at a big company.
That ping-pong table and PlayStation cost a fixed fee of maybe $800. A big company could add that much per month to your pension plan.
While the stock options may be worth something for your startup, generally speaking, the lion’s share goes to the founders. Often, the stocks are worthless in the end. In comparison, large companies have stocks that tend to grow steadily. So any stock-based incentive is a more stable bet.
Even if you get a six-figure payout from the stock options in a startup, you must factor in all the overtime, lack of pension, lack of vacations and stress. Startups aren’t sold overnight.. It often takes about a decade. So after a decade of working twice as hard, a six-figure payout may not mathematically be worth the pension, stock benefits and vacation time you'd have accumulate at a big company.
#3. IT Looks Great on Your Resume
I have friends who have had internships or small stints at big companies, and it’s served them for the rest of their lives.
It’s tough getting through the HR department for a big company, but once you do, you’ve basically vetted yourself for future employers.
It’s also great if you become a freelancer, because, again, it vouches for your talent, and companies love saying, “we’ve got a former person from big company X to help with this project.”
It’s tough getting through the HR department for a big company, but once you do, you’ve basically vetted yourself for future employers.
It’s also great if you become a freelancer, because, again, it vouches for your talent, and companies love saying, “we’ve got a former person from big company X to help with this project.”
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#4. Your Boss is Often Better
According to my personal observations, it’s far more common to have a great manager at a huge company. (Again, I’m not talking about the “mid-size” companies in Office Space where there are only 1,000 people in one building. I’m talking about huge, public companies with offices across the globe.)
In big companies, or, at lease where I work at IBM, managers are chosen based on their people skills… They tend to be soft-spoken and patient. They are generally given special training, and help employees get back on track if they stumble.
In smaller companies, I find that managers are more likely to be chosen based on other factors, like performance or how much the boss likes them.
In big companies, or, at lease where I work at IBM, managers are chosen based on their people skills… They tend to be soft-spoken and patient. They are generally given special training, and help employees get back on track if they stumble.
In smaller companies, I find that managers are more likely to be chosen based on other factors, like performance or how much the boss likes them.
#5. More People = Less Stress, More Free Time & Vacations
In a smaller company, there’s no one who can do your work when you’re away. Vacation policies are often weakly enforced for smaller companies. If there’s a deadline or crisis, don’t be surprised if your boss asks you to cut back on vacation. For larger companies, this is rare, because there’s more staffing and HR policies must be strictly followed.
#6. You Become “One” With Your Team
Startups and small companies embrace the idea of the "rockstar" programmer. I've found at smaller companies, it's usually one person doing or taking credit for one thing. At big companies, there are so many moving parts to take care of in order to get something done, that it's almost impossible to even determine who did the most critical piece of work.
You sort of just "gel" into your team, the company, and act as a single hive-mind. It's an amazing feeling. It's very different than the "team of heros" mentality of a startup.
You sort of just "gel" into your team, the company, and act as a single hive-mind. It's an amazing feeling. It's very different than the "team of heros" mentality of a startup.
#7. Leaving and Coming Back Can Be Okay
One interesting thing I’ve noticed about big companies is, once you’ve been there for many years (I’d estimate at least 2, usually more) you can leave and come back again later.
Of course, there's no guarantees, and you risk having to choose a different set of titles and perks, but it's quite common. The key is to leave on good terms.
At least at IBM, this seems to be fairly common.
Of course, there's no guarantees, and you risk having to choose a different set of titles and perks, but it's quite common. The key is to leave on good terms.
At least at IBM, this seems to be fairly common.
#8. It’s easy to Travel Or try something different
In really big companies, people shift roles and projects all the time. For example, at IBM, many people move from programming to sales just to try something new, or work on their interpersonal skills.
Big companies have internal career portals. The vastness of what’s available is shocking.
Plus, because there are offices around the globe, it's easier to move to a new city or country for a project.
Big companies have internal career portals. The vastness of what’s available is shocking.
Plus, because there are offices around the globe, it's easier to move to a new city or country for a project.
#9. It’s Like University in Terms of Extra Activities
There are tons of extra-curricular options going on at big companies. Whether you want to go hiking or play board games, you'll find a like-minded group of individuals.
Of course, like university, only a small number of people bother participating. However, I've found that there's more time for these sorts of things in the working world.
Of course, like university, only a small number of people bother participating. However, I've found that there's more time for these sorts of things in the working world.
#10. It’s like a democracy vs a DICTATORSHIP
Once, at IBM, the entire department was given a presentation. Afterwards, someone in the hall cried out, “that was just a terrible waste of our lives!”
It wasn’t said in a funny way. The guy was dead serious. And he said this in front of at least 1 manager. Still, we all laughed, manager included.
Imagine saying that in front of management in a mid-size company or startup. They may not say anything, but you will be marked for the long run. Sure, you can delicately present ideas. But it feels like high school. You must tow the line of the owners.
So, as a former startup worker and consultant, I felt... Liberated.
At big companies, there’s just so many people, it’s almost like a country. Even upper management is controlled by shareholders, policy, HR and pesky Gartner reports. It’s just a huge system. So, complaining about something is sort of like complaining about the government.
If this post got you excited about working for a big company, you're free to find available jobs at IBM here.
It wasn’t said in a funny way. The guy was dead serious. And he said this in front of at least 1 manager. Still, we all laughed, manager included.
Imagine saying that in front of management in a mid-size company or startup. They may not say anything, but you will be marked for the long run. Sure, you can delicately present ideas. But it feels like high school. You must tow the line of the owners.
So, as a former startup worker and consultant, I felt... Liberated.
At big companies, there’s just so many people, it’s almost like a country. Even upper management is controlled by shareholders, policy, HR and pesky Gartner reports. It’s just a huge system. So, complaining about something is sort of like complaining about the government.
If this post got you excited about working for a big company, you're free to find available jobs at IBM here.