During your graduate job search, you’ll encounter job opportunities offered by employers of various sizes and setups. One of the bigger decisions you’ll likely encounter at some point is choosing whether to work at a large multinational corporation (MNC), a small-medium enterprise (SME) or a startup.
Let’s be clear that there are no “right” or “wrong” answers to this choice. However, the way that different employers are set up means that we can still highlight certain distinct advantages or drawbacks with each type. With that said, read on for a quick breakdown of the pros and cons of working with different types of employers.
Still, remember that each employer is different and unique. What is listed below are just general truisms for how things tend to work within each class of employer. Ultimately, it’s still up to you to meet with and research individual employers and make informed decisions about which ones line up best with what you’re looking for in your early career.
Multinational Corporations (MNCs)
MNCs are typically large companies with offices, facilities and business operations spanning multiple states and/or countries. Most of these will also be publicly-traded on the stock market. Their size, strong branding, and global name recognition means that they often dominate large portions of the industries they operate in.
Pros of working for MNCs
1. Prestige and Reputation
- Working for a respected industry name can be a big boost on your CV when it comes to future career prospects.
2. Better Resources
- With their sizable budgets, MNCs can afford better technology, knowledge development, and talent retention initiatives. Expect perks like better pay, state-of-the-art equipment, training programmes, free-flow pantries, and further study support.
3. Specialised Functions
- MNCs are often large and complex enough to enable employees to focus on targeted roles and gain expertise in specific disciplines.
4. Structured Progression
- MNCs often have formal graduate programmes and structured career development pathways for staff, making it easier for you to map out your career trajectory.
5. Global Exposure and Mobility
- With offices worldwide, MNCs make it easier for you to work abroad or collaborate with international teams. This can provide you with valuable cultural exposure or opportunities for overseas placements.
Cons of working for MNCs
1. Slower Decision-Making
- Having to build consensus across multiple layers of management means even small decisions may take time to execute within MNCs. MNCs are generally not agile entities.
2. Tough Competition
- Because MNCs usually have no shortage of applicants, the hiring process can be lengthy and highly selective (even for internships). You must have an excellent track record and prepare extensively if you want to stand out.
3. Feeling Anonymous
- In a workforce of thousands spread locally and globally, it’s easier to feel like just a number. Working in an MNC can be very depersonalizing, and you will often not have much contact with senior leaders.
4. Workplace Politics
- Large organisations often have complex workplace dynamics you must navigate. Expect to deal with lots of office politics at various stages of your career.
5. Inflexibility
- MNCs typically have highly-standardised systems and processes, allowing little room for creativity. If you’re the trailblazing type, this might not be the best fit for you.
Small and medium-sized enterprises (SMEs)
SMEs are defined as privately-owned local businesses with 200 or fewer employees. They make up the bulk of employers in Malaysia, employing an estimated 70% of the population. SMEs can range from big-name local brands and service providers, to highly specialized companies occupying specific market niches.
Pros of working for SMEs
1. Visibility to Leadership
- In a smaller team, you are often more directly visible to decision-makers within the business. This can result in easier access to decision makers, and higher chances of being earmarked for career advancement.
2. More Varied Responsibilities
- Since SMEs typically have fewer staff, employees often wear multiple hats and handle cross-departmental tasks. This can provide you with learning opportunities across functions and disciplines.
3. Seeing the Results of your Work
- You will often have the chance to follow projects from start to finish and see tangible outcomes of your work. This can be incredibly fulfilling, especially if your work has a visible impact on the success of the company.
4. Better Collaboration
- SMEs often have more collaborative work environments. Smaller teams often lead to tighter workplace relationships, and flatter management hierarchies can also encourage open communication amongst all levels.
5. Quicker Career Growth
- SMEs often have less rigid career tracks, so you can climb the ladder quite quickly if you’re the type who takes initiative and can deliver consistent results.
Cons of Working for SMEs
1. Potentially Long Hours
- With fewer people to shoulder the workload, overtime and weekend work may be unavoidable at times. Be sure to check the company attitude towards this before signing on!
2. Resource Constraints
- SMEs often have smaller budgets, meaning lesser pay compared to MNCs, fewer high-end tools or software available, or less staff perks. You may need to be scrappy and resourceful to get things done within budget constraints.
3. More Exposed to Market Fluctuations
- While SMEs can be more agile when it comes to riding market waves, this also means that they are more exposed to market risks. A few bad business cycles can have adverse effects on an SME.
4. Less Structured Training
- Small teams and budgets often mean less formal training and more on-the-job learning. You must be proactive about your own growth by taking on new projects and improving yourself in your own time.
5. Wildly Varying Standards
- The sheer number of SMEs in the market can mean wildly differing workplace standards, practices, and cultures across the board. You will have to put extra effort in your employer research to ensure you find an SME employer that sits well with you.
Startups
Startups are often fledgling companies less than five years old, trying to establish a foothold in the market. Though tech startups are the most well-known type, there are startups in other non-tech industries as well. These companies tend to embrace constant innovation and fast growth above all else.
Pros of Working for Startups
1. Creative Freedom
- Startups typically welcome lots of new perspectives and ideas. This means you have the freedom to experiment without being hampered by established processes.
2. Fluid Work
- Without entrenched hierarchies, work is distributed more spontaneously based on individual strengths and interests. If you’re the type who enjoys dynamic work environments, this might be a good fit for you.
3. Drive the Mission
- As an early team member, you have significant capacity to influence the startup’s vision and values. You have the opportunity to push the business in a direction that resonates with you personally.
4. Build Entrepreneurial Skills
- In a startup, every staff member must be an entrepreneur. Startups can be great proving grounds for people keen on developing and testing their entrepreneurial skills – understanding what makes a business tick and putting it into practice.
Cons of Working for Startups
1. High-risk, high-reward
- Though many graduates are drawn to startups by the allure of becoming a business owner, it is worth noting that more than 90% of all startups tend to fail within the first 3 years. This is a very high-risk environment and not one for people who need stable income and like playing it safe.
2. Punishingly Long Hours
- Passionate teams working toward aggressive goals often lead to late nights and blurred work-life boundaries. Vacations and time off are also discouraged, and burnout can be a real risk.
3. Constant Fluidity
- Frequent pivots, product changes, and shifting targets means flexibility is key, often to a frustrating degree. You must be very good at working with limited information and unclear goals, and be prepared to start from scratch over and over again if needed.
4. Limited Structure
- Chaotic workflows, unclear accountability, and lack of processes can frustrate those who desire order.
5. Results Above all Else
- Success in startups is measured solely through measurable business outcomes, not time spent, or personal growth. Be prepared to prove and defend your value constantly.
