Looking for a new job? If so, one aspect that applicants consider is whether the size of the organization is a good fit for them. Two broad categories of businesses are mom & pop shops vs. big corporations. Each one may be a perfect fit for different types of people, but it’s important to consider the differences. In this article, we’ll discuss the pros and cons of working in both types of environment.

Mom & Pop Shop

What is it: A small, independent, usually family-owned, controlled, and operated business that has a comparatively smaller number of employees, has smaller sales volume, and is typically not highly scaled or franchised, and, therefore, open for business in only one or several locations.

Pros:

• Small family feel: Mom & pop shops get their name from the fact that many of these organization are organized around a family unit, sometimes spanning generations. This “family culture” can result in deep, personal relationships, where employees are valued like family for their contributions to the business.
• Chance to cross-train and gain valuable skills: Because there are fewer employees, working at a mom & pop shop can open up opportunities to gain skills that you would not have had access to at a larger corporate. Many on-the-job skills can be learned this way, and there’s often a sense of an apprenticeship-like atmosphere.
• Greater individual responsibility and autonomy: Employees for small businesses like these are given opportunities to handle greater workloads and can usually make important decisions for tasks that are delegated to them.
• Close interaction with management: Because management has a family-like feeling, workers can enjoy a smaller pool of competition and a more egalitarian atmosphere. There are more opportunities to rise into managerial roles, as mom & pop shops value loyalty and time spent on the job as a testament to employee commitment.

Cons:

• Family or small-company politics: Because “blood is thicker than water,” workers may find that some members of the organization may play nepotism games, promoting those who aren’t as qualified because they are more closely related.
• Financial stability: Smaller businesses are clearly less stable than larger corporations and can fall on hardship in tough times. Additionally, business decisions for mom & pop shops may not always be made in the best interest of the organization. Family members may get into a spat that ends up hurting the prospects of the business. Sometimes business succession is undefined, leaving employees unsure about what will happen to the business if a patriarch or matriarch becomes sick or passes away.
• Less benefits: Because of their smaller size, mom & pop organizations don’t have the resources to entice their employees. Insurers typically reduce rates for corporations because of the number of employees or size of the account. For a mom & pop shop, retirement plans, like a 401(k), may not be offered at all to workers.
• Lack of opportunity: One common gripe about mom & pop shops is that there can easily be a ceiling on upward progress. The ceiling may be a result of family members currently occupying high-level positions or many young family members rising within the company at the same time as non-family employees.

Big Corporations

What is it: Contrasting with a mom & pop shop, a corporation is large-scale business organization that is run by a clearly-defined hierarchy. Typically, there are numerous employees and divisions, and may have a large business presence in multiple locations.

Pros:

• Clear career tracks: At a corporation, there are defined progressions towards success and job placement. Corporations often incentivize their employees by offering promotions, increased salaries, benefits packages, and so forth.
• Strong training resources: Because corporations deal with turnover, it is in their best interest to train employees to perform well at their jobs. Big corporations may send employees to schools or training programs to enhance their skillset.
• Attractive benefits: Health benefits (including dental, life insurance), child daycare programs, retirement plans (like 401(k)s), bonuses for good performance.
• Company Association: Employees can gain credibility on their resumes with mentions of working for high-profile and prominent organizations.
• Opportunity to move between departments (or locations) to gain new skills: Many employers at big corporations know the value of training already-employed individuals that know the company culture instead of hiring a new worker. This is why many corporations offer classes at training schools or training environments that can increase the skillset of its workers and help with employee retention.

Cons:

• Big company politics: Because corporations are a competitive environment, there is a propensity for there to be a “political” atmosphere in terms of who attains promotions, responsibilities, and high pay raises. Corporations are notorious for middle managers, maneuvering executives, misincentives, and a general sense that everyone is out for themselves.
• Quick laying-off of workers to please shareholders: Corporations typically rely on venture capital, institutional investors or public market investors, so large-scale business decisions that directly impact the bottom-line can come from investor pressures and may not serve employees in the long-term. This means that years of dutiful service may not be respected when the going gets rough.
• Getting lost in the sea of workers: Because there are so many more employees, workers may not receive clear mentorship or training. Other times, employees may get stuck in a certain position or shift forever.

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Takeaway: Your success is all about fit and putting yourself in an environment where you can thrive. Consider the pros and cons to determine whether you would be comfortable and thrive in your career choice.

Xemplar Workforce Solutions is the #1 rated employment agency in Salt Lake City according to Top Rated Local. We specialize in the placement of skilled professionals in long-term job opportunities. If we can help you find a great, stable, high-paying job or outstanding employees for your business, please contact us today. More information about Xemplar can be found on our website at www.xemplar.com.