Big Business vs. Small Business: 4 Reasons Bigger Isn’t Always Better When it Comes to Employee Experience
Big Business vs Small Business

Big Business vs. Small Business: 4 Reasons Bigger Isn’t Always Better When it Comes to Employee Experience

The reality is, when it comes to hiring, big corporations are often at an advantage. They can attract talented people with big, resume - building projects and supercharged growth opportunities. In an historically tight labor market, it might seem tougher than ever for small businesses to attract top talent. However, small business owners shouldn’t feel too bad. Here’s why.

While they might get less time in the limelight, companies with fewer than 100 employees do still employ more than a third of the U.S. workforce, according to the most recent census. What is attracting these employees to smaller scale operations rather than big names? A lot of it comes down to having their voices heard, being part of great teams, and seeing the difference their work makes. If you’re a small business owner, let’s break down the pitch you can make to potential employees who don’t know whether a small business or corporation is right for them.

4 Advantages Small Enterprises Have Over Large Corporations

  1. Recruiting and Hiring Employees

  2. Recruiting for a major corporation - often outsourced to external agencies - can seem like a never-ending series of hurdles. Of course, getting hired by a smaller company isn’t necessarily easy, but it does offer candidates a greater chance for face-to-face conversation with a decision maker.

    In fact, smaller companies can leverage their recruiting processes to showcase what they offer employees that corporations can’t - more personalized experiences, responsive feedback and less bureaucracy. If a candidate is weighing up job offers from small business vs corporation, a superior recruiting process - being able to talk with future coworkers and getting the chance to see a company culture up close - could make all the difference.

  3. Creating a Company Culture

  4. Crafting a great company culture is a tough - but important - task for any business. Culture impacts employee engagement, and employee engagement impacts everything - companies with higher engagement have higher staff retention, higher customer engagement and an average of 21% higher profitability (Gallup). The good news is, maintaining the right culture will likely prove easier for a small business compared to a corporation.

    Company culture has to start at the top - but as a company grows, getting that to filter all the way down becomes more difficult. It can be much easier for a smaller organization to maintain the values and beliefs of the founder, because in many cases, the founder still works there.

    Most of all, at a smaller company, employees can avoid “small cog syndrome”, that feeling of being a tiny part of a massive structure. They are more likely to be able to directly see the difference their work makes - that’s great news for company culture and employee engagement, and it’s a great advantage for small businesses over big businesses.

  5. Nimble Decision Making

  6. Sure, you may work on big projects at a big company, but there is one thing a small business can offer: faster, more nimble decision making. In a smaller, more dynamic business environment, employees may also have the chance to be more flexible and learn more. Compared to big business, small business often requires ‘T-shaped’ talent - an emphasis on breadth, not just depth, of skills. Not only does this add variety to working life, it boosts learning and development, giving staff a broader range of experiences.

  7. Employee Recognition

  8. It can be hard to get noticed in the corporate environment. In fact, people who work for large corporations often have to market themselves much more actively, which is kind of like having another job on top of your day-to-day job. In a small business, performance gets recognized - how could it not?

    But recognition isn’t just about opportunities for progression and promotion. It’s also about being listened to when you have ideas, or supported when you require help or have a complaint. It’s crucial that employees feel like their work is seen and their voice is heard - and no matter how many structures corporations put in place to make sure this is true, it’ll always be simpler at a small business.

Your Employee Experience Can be a Competitive Advantage

Small businesses have an advantage over corporations when it comes to designing an employee experience that brings out the best in your people and gives them real motivation to stay engaged. To learn how to create the ideal employee experience, check out our infographic here.


Paycor guided hr software tour

More to Discover

Webinar: Make a Lasting First Impression with Onboarding

Webinar: Make a Lasting First Impression with Onboarding

Recruiting and hiring is a hot topic these days, but it's only half the battle. What's the point of attracting talented people if they don't stick around? New employees who receive an excellent onboarding orientation are 69% more likely to remain at a company for up to 3 years. Give us 30 minutes and we'll show you how to engage new hires right away and dramatically reduce paperwork with Paycor's Onboarding solution.Speaker: Brian Craft and Kim Saldana

SMB

4 Skills You Need to Run a Profitable Restaurant Business

4 Skills You Need to Run a Profitable Restaurant Business

Running a Restaurant is Not for the Faint of Heart Running a restaurant isn’t something anyone does for easy profits. Sixty-percent of restaurants (and in some regions, 90%) fail within their first year, according to Philip B. Stark of the University of California, Berkeley. Even when everything works, industry profit margins are typically stuck in the low single digits (National Restaurant Association). But There is an Upside So, are restaurant entrepreneurs crazy? No. After all, someone’s turning a profit. Restaurant industry sales are set to exceed a record $863 billion in 2019 (that’s 3.6% year-on-year growth). Consumer confidence is so strong that the National Restaurant Association’s 2019 annual report refers to it as “pent-up...

SMB

Why Brick and Mortar Stores Aren’t Going Anywhere

Why Brick and Mortar Stores Aren’t Going Anywhere

Brick and mortar stores were supposed to be finished. The future of retail is online, industry experts have been saying for a while now. And sure, it’s true that consumer habits have changed, and we all know of traditional retail businesses - large and small - that have suffered from the ‘Amazon effect’. The low margins and convenience of internet shopping have made it seem like just a matter of time until traditional stores were a thing of the past.Here’s the thing: it mostly hasn’t happened that way. As we head into 2020, the ecommerce sector is hovering at around 12% of total retail sales (Statista). Brick and mortar businesses still dominate the marketplace - and some are even experiencing something of a revival. Think about this:...

HR

The Challenges of Scheduling a Multi-Generation Workforce

The Challenges of Scheduling a Multi-Generation Workforce

For the first time in history, there are now five generations working side-by-side. Generation Z (born after 1997) is leaving college and entering the workforce and Traditionalists (born before 1946) are still contributing. This broad range of experiences is great for a dynamism and getting a different perspective but can create challenges for managers.Managing a multi-generational workforce requires understanding the needs and working styles of employees born over fifty years apart. Over the past five decades technology has revolutionized the way we work, but that’s not all that’s changed—so have values. Different generations have different expectations about things like feedback and career development but will likely also differ when...