We have already talked about choosing startup over MNC. However, we do not encourage people to believe and strongly agree to whatever we say. It’s always an individual’s personal choice.
Now what does an MNC actually mean?
Multi National Company – A large company or an organization which has its operations in more than one country including or excluding its own country.The MNC trend actually started in the year 1600.Most of the MNC’s in India are either American, German, Swedish, French, European or from APAC regions & EMEA. It also means that it produces or sells its products or services in more than one country.
1. Financially Strong
MNC’s are financially & economically strong as compared to startups but, that does not mean MNC’s don’t face ups and downs. Market remains similar for both.
However, the main difference is the organization in the MNCs which is usually better. Employees always get their salaries on time. There is never a delay in any allowances and bonuses as such. But there are some drawbacks as well. Easily put, CTC’s are high but take home salaries are low. There will be many deductions according the company’s rule and in hand amount would be comparatively low to what previously agreed upon. While in startups, deductions are less and you get what you were promised.
Most Startups work from scratch and try getting work executed in lesser budgets. However, learning is usually more in startups and pay is comparatively lesser than of MNCs. Some startups are very well funded, while some grow slowly due to the lack of financial support.
Since MNCs are globally managed, their operations heads are from different countries, they speak and understand different languages and come from different cultures too! However, when it comes to building culture in India, Indians are known to be quite flexible and known to speak finest and fluent English in the world. Building likewise culture in India is a task, but a doable task really, since they seek people knowing common languages and someone who is flexible and resilient and wants to do specific or limited work with huge degrees from top college.
Whereas in startups, usually culture is the local one from that city itself initially, but it is very casual and n. Because they are all mostly young people having advanced minds. Startups require more flexible people who could welcome different kinds of work and young people are perfect for that! While MNC’s are rigid on this part including qualifications.
3. Hiring process & structures
In startups people multitask and do a bit of everything. Whereas in MNC’s, people do not encourage variety and are quite specific on the job responsibilities.However, the hierarchy of MNC’s is decent while in startups, different kinds of work can be allocated to one person. MNC’s are quite strict to the JD’s and KRA’s. Learning becomes slow in MNC’s. For example, let’s consider accounts department. In MNC’s, they will be divided in to 3 or may be 4 parts. One will handle receivables, one payables, one MIS, and one may prepare ledgers and petty cash. So, the knowledge and growth pattern in MNC’s are quite limited compared to startups. In a startup, an accountant would do all of it in a lesser salary just because he or she wants to learn and gain experience. It does matter how highly he or she is qualified. MNC’s focus on education as well. They are really strict with qualifications and relevant experience.
4. Work Days
Mostly active days are Monday to Friday – 9:00AM -6:00PM (5 days a week), Whereas in startups, most people work for 6 days a week.
Limited knowledge and slow growth patterns in terms of startups. However, huge office politics and employee grievances, employee management issues will be seen in MNC’s since they are wide spread. Startups face different kind of issues comparatively, not much of politics but yes, office politics is present everywhere.
In my previous posts, there were a few common questions to ask yourself before choosing a job. Please go through that before choosing any company/ Boss for yourself.
Hope this article was helpful. Do let us know if we missed something.