Five (5) Reasons Why Gen Z Prefer Multinational Companies Over Start-Ups
Big multinational companies offer a multitude of opportunities you could never dream of working for a start-up. Do not get me wrong, I have worked for both sides, and both experiences have been incredibly rich in life lessons and opportunities. However multinational companies offer a wide-range of perks that are hard to find within start-ups.
#1 The availability of HR departments
This might seem mundane, but an HR department plays a big role in protecting the employees. I have been part of a start-up that did not have an HR department. The leadership did the hiring, the firing, and everything in between. This meant that there were no mechanisms set in place to start investigations or advocate for the employee’s rights according to the country’s laws and regulations.
I found myself in a position where I had to work for long hours, and the leadership could treat us the way that wanted to without any repercussions. As a fresh graduate, I did not know my rights or anything about labor laws. Thankfully, I had people around me who advised me on what my rights were. I learned the hard way that HR departments serve as a cushion, protecting employees on multiple levels. They operate based on proper mechanisms that help instill a sense of fairness and justice within the workplace.
#2 No, we are not a “family”
Within start-ups, you will most likely hear management calling their employees “family”. This is wrong on so many levels. I would personally advise anyone who hears that word from any manager to run away.
Family means that boundaries are going to be broken, it means you will be micromanaged, it means you will be given responsibilities outside of your scope. It also means that they will make you feel guilty if you take sick days, and you will be bothered during your PTOs (Paid Time Off). Your direct manager is going to be brazen, and if they need you, they will break all your boundaries.
I remember having food poisoning, and my stomach felt so bad that I couldn’t stand up straight. When I informed my manager, the first thing he said was “Unless you need to get surgery, I don’t see why you need to take the rest of the day off.” — I couldn’t believe my ears. I managed to let him let me go, and made sure to provide him with a doctor’s note just so that I don’t hear any other side comments the next day. I was not even planning on seeing a doctor; I wanted to take the meds and stay at home to rest. But because I knew that I needed to provide proof, I had to drag myself out to a doctor’s office and get a note.
Do not take it personally, start-ups may not have the right staff to develop the appropriate mechanisms that allow you to have flexibility. This is just the way they are. You will learn a lot, and you will have to play different roles since they do not have the right amount of people to have very distinct job descriptions. You will learn a lot, but your boundaries will 100% be crossed.
Big corporations do not have that. In fact, you will never hear people call each other family, and if it does, it’s not coming from management. Each person has their designated role and scope. You have designated time off that you can take whenever is necessary. You will also be required to assign a proxy for when you leave (meaning, that you will not be bothered during your PTOs).
That’s why, when you have worked for both, you start understanding why there is so much competition for big companies.
#3 Better working hours
Remember, start-ups, for the most part, do not know what the definition of “boundaries” is. This is totally understandable; they need to maximize the use of their available resources because their budget might be tight. So, do not be surprised if you are expected or forced to be working long-hours. Management may even ask you to take your laptop back home to continue the delivery of the things that you are working on. If you think that by joining a start-up you will be working from 9 to 5, you are just kidding yourself.
Picture this: start-ups are trying to rise to the top. They want to be able to compete with the big corporations without having the same resources. To gain notoriety and set themselves apart, they need to work twice as hard. If they need to deliver a project by a set date, they will use all available resources to meet the deadline. It does not matter if it means asking employees to stay long hours. They focus on delivering quality work and building a good reputation. It’s not secret that start-up CEOs work 24/7, and they not expect everyone under their leadership to have the same work ethic.
On the other hand, big corporations most likely expect their employees to leave after their working hours. Usually, they have departments that advocate for “employee wellness” and work-life balance. Of course, that may not always be true, but they do have all the necessary resources and back-ups to fill the projects that they need to be done.
#4 Better compensation packages
It is no secret that larger companies can provide compensation packages that far exceed what start-ups can provide. In start-ups, unless you hold an executive position, your compensation may not be the best. Even as an executive, you may initially receive equity instead of a monthly salary. If the company does not perform well, then that equity could become worthless. Those are all valid points that you need to think about before joining a start-up. Additionally, there is the risk that the start-up may not pay you initially until they secure their first customers or clients. If you can support yourself through other means and trust the company’s potential, then you can take that risk.
On the other hand, working for a big corporation typically offers immediate benefits such as:
- Supplemental Insurance: Health coverage beyond basic insurance.
- Signing Bonus: Lump-sum incentive upon joining.
- Competitive Salary: Higher base pay aligned with industry standards.
- Periodical Bonus: Potential for bonuses tied to performance.
#5 Brand recognition and reputation
Having a big corporation on your resume is a luxury. It demonstrates that a respected company trusts your abilities and sees potential in you. This endorsement can streamline future job interviews since the company’s reputation validates your expertise without the need to explain its background.
Although start-ups could serve as a great stepping stone to joining big corporations, sometimes, it becomes difficult. You may need to explain further your different scopes, how you helped the company become better…etc. You have to prove yourself “more”.
Big corporations provide a structured environment, similar to what they have known through academia. By nature, humans tend to feel more comfortable with the familiar. Because the level of ambiguity is so low, the majority is doing their ultimate best to get a seat at the table.
