The Pros and Cons of Working at a Startup in 2019
What do you look for when considering a job opportunity? Is it the salary, benefits package, career growth, company culture, or work-life balance? These are the top 3 things that every job seeker looks for before accepting a job offer. For millennials, the company reputation and growth potential matter more than pay.
But for a job seeker just entering the market or a professional making a career transition, taking a job in a startup is not a decision to take lightly. That is because the survival of startups doesn’t look so good. Over 50% of companies in the US fail in 5 years of operations. The percentage goes higher in 10 years. Still, the decision to join a startup can offer extraordinary promise.
How do you know whether taking a job in a startup is worth it? Check out the pros and cons of working for a startup:
Greater Responsibility When Working for a Startup
The individual contribution of an employee in a startup is much more critical than in a large company. Even if you are hired for a particular position, you will help with tasks that are not within the job description as well. Therefore, a startup environment provides an excellent opportunity to learn directly from the founders and gain skills to improve career prospects.
On the downside, more responsibilities translate to a heavier workload and longer working hours as opposed to working in an established company. And since the startup owners are highly motivated individuals who are ready to work for hours on end — even going for days without rest — you may end up dealing with a very demanding boss. As a result, you will find yourself spending most of your waking hours working.
Startup Vs Corporate: Salary and Perks
According to a Glassdoor survey, 67% of job seekers consider the salary in a job advert while 63% look at the benefits offered. Startups tend to give their employees lots of benefits to keep their employees satisfied. These may include:
· Work from home options and flexible hours
· Casual startup work culture including casual wear
· Free food and drinks
· Access to gym and healthcare services
· No supervision
· Employee discounts on goods or services
If you are more interested in the job benefits than the salary, accepting a job in a startup is a great idea. However, most new businesses don’t have the capability of paying as well as corporates. The bulk of the investment and earnings go to product development, growing product awareness among prospective customers and the operational expenses. So, the large workload won’t necessarily translate to a good payout.
Job Security and Opportunities in Startup Companies
Without a doubt, startups offer many opportunities for growth. If the business goes well, you get a part of the spoils too. And also, you get to work in many roles and gain valuable skills and experience to add to your resume. The startup experience may also come in handy when you want to go on and start your own business. A corporate, on the other hand, provides limited opportunities to gain skills outside of your job description and promotion is usually harder.
Taking a job in a startup is quite risky. And even if you love the benefits of working at a startup, higher chances are that you won’t keep it in the long term. Tech startups jobs are perhaps the most affected because of the speed at which new tech innovations are coming up. Statistics show that over 70% of startup technology companies fail within 20 months of finding financing. And even if startup founders are usually brilliant individuals, they lack strong mentorship and leadership experience.
Job Satisfaction and Work-Life Balance When Working at a Startup
One of the many startup benefits you will enjoy, perhaps, is job satisfaction. It feels special to see a company start, grow and succeed. Also, your contribution to the business is valued, and you feel proud of it. Combined with a lively working environment, it can be a pretty good place to be.
However, behind the fun and hype of startups, there is a great amount of dedication required from each employee. Most startups don’t have clear-cut working hours and the difference between the work-week and weekend are a blur. It becomes harder to get days off as a lot of things are dependent on you. You end up married to the job. If you would rather not think about work outside the 8–5 hours, don’t take a job in a startup.
Also, the founders may put extreme pressure on the workers to minimize costs and for the business to stay afloat. And since even those startups that are a little more established still struggle to survive, you may get fired just as quick as you were hired.
Job Performance Recognition in a Startup Company
Smart employers recognize that innovative ideas are worth the risk, more so in a startup. In large corporations, however, the work of the entire team, rather than an individual or small group of workers, influences the success of the organization. Therefore, getting recognition for outstanding performance takes several months as opposed to weeks or days. But it is impossible to ignore a well-done job in small business. So, if you do a good job, you will definitely be recognized for it, and you get rewarded for your brilliance. The flip side of this advantage is that, if you slack off your duties or screw up, it will be noticed.
Working in a new business is definitely not for everyone. If job stability and higher compensation are the most important factors for you, don’t make that move. But if you want recognition for your work and an opportunity to gain new skills quickly, it is definitely for you.
