Home Business and Economy Why Employees Prefer Start-ups Over Established Organisations?

Why Employees Prefer Start-ups Over Established Organisations?

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Two kinds of people are known to leave an indelible mark on the world of entrepreneurship. These include the entrepreneur (the individuals who start a particular business) and the employees (the ones who risk it all by working for these entrepreneurs well before the company is established). 

Together, these two forces of nature combine their efforts and skills to make a start-up successful. Since the role of early employees joining a new startup is crucial, it is only appropriate to know whether employees prefer start-ups over established organisations.

A company always needs the right kind of employees to succeed. This is particularly the case for start-ups in developing countries like Pakistan that have to double their efforts to compete with companies that have established a firm foothold in the business world.

In the context of launching a startup in Pakistan, employees of a new startup might not face the risk of financial losses in business, but they are still risking their career by joining a lesser known company over a more established one.

These employees are the greatest asset of any startup since they also take a leap of faith along with investors to ensure that a company in its infancy reaches full potential. And following are the reasons what makes working for a start-up so enticing.

Comparing Start-ups with Established Organisations

Transparency: In its initial stages a start-up is more transparent in its working than a big company that is already an established name in the market.

Most start-ups engage their employees on a level that treats them no less than the founders. A good example of this practice can be observed in the working of Pakistan-based property start-up Zameen.com and how it treats its employees.

The hierarchy in this company does not sit behind walls but instead use open spaces like the rest of the employees to encourage interaction among the workforce in a transparent manner.

Transparency is a highly prized trait in the business world, and it plays a vital role in establishing trust and the spirit of ownership among workers.
In contrast, big companies lack an entirely transparent system where the most valuable information is only shared with a few people sitting atop the hierarchy.

Flexible Work Environment: The work environment in most established organisations is rigid and old school at best. There are strict checks on each and every aspect of an employee’s time spent within the organisation, and most workers find themselves trapped inside small cubicles and labour hard throughout the day.

In contrast, the work environment of start-ups is usually very flexible. The environment provided in start-ups revolves around non-traditional furnishing and shared workspaces for all employees irrespective of their position in the pecking order.

Cubicles are replaced by conference tables which allow employees ample space to work together and discuss important issues prevalent within a particular organisation. In addition to this, the flatness of hierarchy in a start-up also helps since employees can quickly approach and talk to company CEO or other people holding important positions within the organisation.

For instance, the chauffeur cab booking service, namely Careem, recently entered the Pakistani market and the idea took off instantly in the major urban centres of the country. This service allows a car owner to register his vehicle with the company. Once this is done, even an employed person can make a quick buck by shuttling passengers from one point of a city to another during his free time.

Learning a Unique Skillset: Start-ups allow employees to develop a unique skill set since they have more freedom and space to work on their strengths and eradicate their weaknesses.

In comparison, established companies prefer to employ people who have already developed a particular set of skills. This leaves start-ups with a bigger margin for innovation since it encourages forward thinkers over laid-back employees.

The Verdict

The flexible structure of most start-ups provides it with enough space to change direction quickly and with ease in case a company is headed in the wrong direction. On the other hand, big companies lack this ability due to the rigidity of its structure and the bureaucratic nature of its departments which prevent them from changing their course quickly.

Getting hold of a job at a start-up is preferred by employees since it provides them with the chance to sharpen their skills and grow along with the organisation. Employees also find it especially tempting to work at start-ups because they can freely interact with people sitting atop valuable positions and make long-lasting social contacts.

In a nutshell, start-ups are far more effective in implementing innovative business models that not only ensure productivity but also encourages advancement and ingenuity.

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