Need to hire? Play up pluses of working for a small business

Advantages outweigh less pay, say many employees

Think your small business can’t compete with larger companies when it comes to recruiting? Think again. A recent survey shows many employees prefer working for a small company.

Salary.com’s “Working for a Small Business Survey” revealed that 62% of small-business employees think pay is better at large companies. But only 38% of respondents who have worked for both small and large companies said pay actually was better at a large company. And despite the perceived gap in pay, employees listed several non-compensatory factors as reasons they remain at small businesses, including:

Work/life balance (46.2%)

Commute (38.1%)

Loyalty (34.8%)

Their boss (31.4%)

Relationships with co-workers (29.5%)

Pay, benefits and opportunities for advancement were cited as the advantages of working for large companies.

“Our compensation data validates that small companies do typically pay less than larger ones,” says Jeffrey Blue, director of marketing for Salary.com. “What’s important for small-company owners and executives to stress in their recruiting efforts are the numerous advantages of working for a small company. This survey indicates that those advantages have meaningful value to employees.”

The survey also revealed that employees’ perception of advancement opportunities at large companies may be greater than actually exist. Of the respondents who have only worked for small companies, 75% believe they would have greater opportunities for advancement at a large company. However, only 45% of those who have worked for both small and large companies felt that their opportunities for advancement were in fact greater at the larger company.

Other key survey findings

Benefits: Survey results show that large companies offer more attractive benefit packages to their employees. Of respondents who have worked for small and large companies, 72% said their benefits were better with the large company.

Other attributes: Survey respondents claim that small businesses come out on top when it comes to most non-compensatory factors. Of respondents who had previously worked for a large company:

Sixty-two percent thought politics were a more common negative influence at larger companies.

Fifty-five percent said loyalty was less prevalent at larger companies, while only 18% claimed it was more prevalent.

Forty-two percent felt the company culture was worse at large companies, compared with only 28% who thought it was better.