8 Differences Between working for MNC Vs Startup
Explaining the difference between working for a startup and an MNC is not that tough. It is like telling the difference between formal wear and casual wear or telling the difference between sophisticated meetings and fun-filled interactive group discussions. Where at one place MNC’s are all about being proper and following a process; startups are all about working hard and having fun at the same time.
Let’s discuss these points in a much more detailed and logical manner:
1. Responsibility and Accountability
At a startup, you are more responsible and accountable for your actions as your action have a significant impact compared to that of an MNC. If you do a great job, everyone from CEO to your colleagues will praise you for your work and the value you create for the company. If you do something terrible, it will not go well with your colleagues as it will have a significant impact on the company.
However, at an MNC, even though you create some value, your work goes unnoticed, the majority of the time, especially when one is at an entry-level position. You will have a fractional impact on a company’s performance as you are just expected to complete your tasks.
Even though working at a startup sounds cool, there is a considerable chance that your close ones, friends, and family would not have heard of the startup you are working for and what’s your job role. Mainly, this is because startups have low brand recognition.
On the other hand, working at an MNC might give a significant boost to your CV, as you might be working for one of the top known brands of the world whose products and services are used by billions of people globally. Brand recognition gives you an identity and boosts your market value.
3. Learning Curve
At a startup, you are working directly with the innovators and the creators of the business and are involved in the whole process – right from the start which is making plans to the end which is providing the product or service to the client.
However, in an MNC, the task you do is merely a part of a more significant process of the company of which you might not even be fully aware of. The core work that you do will have just a few variations over the course of years, and the learning curve might flatten out quickly.
There are plenty of perks of working at a startup like flexible working hours, employee discounts and free food; money isn’t one of them. A startup most of the times isn’t able to match the salaries with that of MNCs but tries to compensate for the same through it’s the free-spirited and interactive atmosphere. Also, some startups provide the facility to have some share in the company’s equity to its employees.
MNCs, on the other hand, provide good monetary packages to its employees along with perks like health insurance and transportation money. Mainly, it is because MNCs try to build their reputation on their perks for having the top talent on board.
5. Work-Life Balance
At a startup, every leave you take will have a significant impact on the performance of the company because most probably you will be handling one or two processes. Even though you might have much fun while you are in the office, you might have a negligible social life apart from work. One might also have to work on weekends.
In case of an MNC, there are fixed working hours to work. You will get much time to spend with your friends and family. You will have a well ordered and maintained life. Also, even if you take a leave for a few days, nothing significant would change in the company.
6. Time Period
At a startup, time does not matter much to grow and climb up the ladder. It would help if you were hardworking, adaptable and open to new challenges daily and you might climb up the ladder very quickly. Performance is the primary factor for succeeding in a startup.
MNCs have stringent authorities and regulations that every employee must follow. Freshers usually go through training period and probation before getting absorbed. Reaching the high managerial positions like that of a team lead can itself take 5-10 years. Office politics also plays a significant role in one’s level in the hierarchy.
7. Job Security
Research by UC Berkley, Stanford, and other contributors suggested that over 90% of the startups fail within the first three years. Most startups, especially those in the tech industry don’t survive for long as new tech advancements and inventions wipe out their businesses. Thus, even though you love what you do, you might not be there for long if you are working for a startup.
On the other hand, MNC’s provides job security for more extended periods. So, if you are someone who prefers stability and security of a job, you should go for an MNC.
8. Working Atmosphere
Working at a startup brings out your creativity as it has a lively and fun-filled atmosphere. Even though it’s not always skateboarding in the hall and gaming, startups still have a favorable working environment.
MNC follow a professional and strict working environment where you interact with your colleagues only in the breaks and after office hours. It curbs the creativity of the employees, where you only work according to a set process of the organization.
Working for a startup or an MNC has both advantages and disadvantages. Where, on the one hand, startups provide much exposure to their employees, MNCs instills discipline in their employees. Where on the one side, startups offer their employees’ perks like free food and flexible working hours, MNCs provide better compensation.
Work-life balance and learning curve are two other significant factors which differentiate the two. MNC provide better work-life balance, whereas, startups offer much more scope of learning to their employees.
In the end, individuals can choose where they feel more comfortable to work according to their personality and priorities.