Multinational Vs Start-up – Which is better?

Multinational Vs Start-up – Which is better?

8 key factors to consider while choosing between a start-up and an MNC…

Gone are the days, when having a job offer from an MNC was the ‘ultimate’ opportunity. In the age of entrepreneurship, start-ups have become the coolest place to work, from top to bottom. The situation gets confusing when one has to evaluate a job option between an MNC and a start-up, as both offer unique advantages. It is rather tough to choose relatively unknown firms over well known MNC brands.

To make the right choice, one should evaluate both options on parameters such as work environment, job security, exposure and job role. Sathyanarayana TK, vice president- human resource, Robert Bosch Engineering and Business Solutions Limited shares 8 key factors to consider while choosing a job between a start-up and an MNC.

1. Greater Exposure and Freedom to Deal with a Dynamic Environment: Start-ups have relatively leaner approach to situations and processes. This has a bearing on SPEED, speed to reach out, speed in decision making and finding solutions. The factor of ‘Freedom @ work’ is also higher, as things are less formal and not very rigid inter-functional boundaries. One handles additional roles and takes on higher responsibilities thereby widening ones experience and exposure. The ability to work in a volatile environment and be networked in frugal structures goes a long way in learning to deal with dynamic situations that generally exist in a start-up.

2. Developing Overview: The advantage of a start-up is that you can see the product, end to end, from the conceptualisation phase to delivery to post delivery. So, the individual gets an opportunity to develop a better perspective and overview.

3. HR Systems: The way start-ups and MNCs manage their human resources are also very different. Attraction and retention policies vary in two areas. While MNCs look at volume hiring, start-ups do specific/niche skill hiring. Selection, integration and development processes also differ accordingly. Opportunities for formal learning and job rotations tend to be higher in an MNC.

4. Mature Processes: MNCs always have the advantage of established brand image, well developed networks across regions, mature policies and processes, stable organisation structures – be it people or business. It is usually uniform and adapted to the specific country where it is located. MNCs also have specific orientation on societal benefits, environmental concerns apart from key financial indicators. All these aspects bring a degree of stability and predictability as compared to a start-up.

5. Facilities: MNCs generally offer better infrastructure like gyms, cafeterias and ample technology resources whereas in a start-up these facilities may be restricted. While start-ups may encourage young professionals to be more creative, the lack of access to technology may be a hurdle.

6. Rewards & Recognition: The employee at a start-up takes up higher risks which are linked to a potential to earn higher rewards via a bonus or a variable pay program. There is an opportunity to achieve higher recognition in a shorter span of time.

7. Honing Skills: Dealing with a larger level of responsibility, quick pace of decision making and the pressure to perform could also lead to a sharpening of skills in a relatively lesser time in start-ups.

8. Sense of Belonging: Along with quicker recognition, the smaller size of a start-up also leads to feeling connected within the organisation and having a sense of belonging.

The good news for us in India is that there are large MNCs that offer excellent careers and there are many start-ups with innovative ideas for products and services along with solid business strategies.

Looking at the large number of opportunities, one should first assess their strengths and interests and review the advantages and disadvantages. This would help them choose the organisation that best fits their personal and professional aspirations.

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