Does the size of the firm you work for have any real bearing on your long-term career prospects – not to mention your general well being? Are you better off working in a large or small firm? We take a look at these issues.
Should the number of partners and fee-earners on the books be a deciding factor when weighing up the pros and cons of moving to a particular organisation? There’s a school of thought which suggests it’s better to be a large cog in a small machine. Equally, it can be hard to resist the lure of a magic circle firm – even if that means turning down a seemingly more attractive offer from a smaller player. Consider the following…
Want to be fully engaged? Head to a small firm…
Promoting ‘employee engagement’ is a perennial concern of businesses both large and small. Broadly speaking, we are engaged when we’re motivated; when we care about and feel valued within the organisation we work for. We want to feel we have a real stake in our firm – and it makes sense for employers to promote an environment where discretionary effort is the norm; not least because research shows that fully engaged companies are 2.5 times more productive than non-engaged ones. Research also suggests that we’re happier and healthier when we’re fully engaged, with studies showing a link between high level of engagement, lower rates of stress, absenteeism and employee churn.
Statistically at least, you are more likely to be engaged if you opt to work for a small firm. For instance, a 2014 study showed that just 29% of big company employees reported being fully engaged at work, compared to 36% of small company employees. Just 18% of employees at smaller firms described themselves as “fully disengaged” compared to 29% at larger companies.
Want a varied workload? Be wary of false assumptions…
You may assume that a smaller organisation will provide greater opportunity to get a taste of areas that are outside of your main area of expertise, whereas a bigger firm could leave you pigeonholed. You need to be aware of the potential dangers of ‘dabbling’. Insurance specialists such as Bluefin Professions work with organisations of all sizes – from multi office franchises to independent firms – providing a personalised and flexible approach to risk management. It’s natural to want to expand your areas of knowledge, but you may find that a bigger firm is better equipped to enable you to do this in a structured and supervised way – rather than being thrown in at the deep end.
Maximising your earnings potential
When thinking about your future potential earnings, you should look beyond starting salary. Initially, the figures offered by the big boys may seem high in comparison to smaller firms, but that isn’t necessarily a taste of things to come if you were to take the job. If hundreds of associates are on the books, your annual salary review is in danger of being an extremely formulaic and predictable process. In short, even if you’ve exceeded expectations and you feel you deserve a stellar raise, your bosses may be unwilling or unable to divert from the linear salary path that applies across the firm. The same might apply to partnership prospects: no matter how good you are, you may find yourself waiting in a long line for promotion.
In an SME, by contrast, there’s often greater scope for flexibility. The absence of a rigid tier system may make it easier to reward exceptional talent more generously and quicker than in a larger firm.
There is, however, another way of looking at this. If promotions and salary increases are dealt with on a purely ad-hoc basis, you could find yourself wondering where exactly you stand. If people are being moved up to the top floor while others are bypassed seemingly without rhyme or reason, it hardly makes for a sense of security.
So where does all of this leave you? LinkedIn could be especially useful. Whether you’re considering a small or large firm as a possible destination, look closely at the bio profiles of associates – and especially the dates. Is there a tendency for them to be left lingering in junior roles with little evidence of upward movement? If so, it may be a firm to avoid.