Big Company Low Salary Or Small Company High Salary?

Hi,

I am working for a small MNC (60 employees in India) which is in the field of data warehousing. It is into niche technologies, and the work is really good and challenging. The work culture is excellent, with a 9-6 job and no overworking like some of the Indian software companies. Salary is also excellent; I am getting 12 Lacs PA with 5 years of experience. So, our company pays well at all levels of the hierarchy.

So, I have just described a dream job that any software engineer can think of! But there is a small problem: The company expects exemplary performance from its employees, high amounts of initiatives and drive, not waiting for an opportunity but making new opportunities, etc. This means that the company constantly reviews employees and people who they think don't fit the bill and are asked to leave immediately!

Another funny thing, employees don't leave our company (why would they with such great salary and work culture!), but the company leaves its employees! Already, they have let go of some 20 people at different times during the past 2 years! That's a huge number for a company of our size.

I have just been offered a job with a large MNC with over 50,000 employees across the globe. The salary is 20% lower than my existing salary! (10 Lacs PA) Although I am doing pretty well in my current company, I am not very sure if I am performing up to the mark. So, I am confused now whether I should take this offer at the large company or not.

Positives of joining a large company: job security, I can relax and stay there for another 5 years.

Negatives of joining a large company: A pay cut of almost 15,000 Rs per month.

But my fear is if I let go of this opportunity of joining the big company, say 6 months down the line, my current company may fire me, and then I won't be able to get even 8 lacs. Even if I get it, it might not be a company that I like.

Please advise, what would you do if you were in my situation?

Cheers!

Please guys, help me! I need to decide fast.

By the way, have I posted my query in the right section? If not, could you guys please let me know where I need to post this?

Hi,

Working in an MNC with great package and work culture is just like having a sweet with lots of toppings on it. But, my dear friend, if you are an asset to a company in terms of efficiency, then it's sure that they won't ask you to leave. However, if efficiency decreases even by a little percentage, then they might ask you to leave.

You can decide better how your performance is going. If it's good, then stay. If not, move ahead. As the recession is ongoing, I guess either way we are not safe unless and until our performance speaks for us.

I hope this will give you clarity.

Regards,
Shweta

Hi, my suggestion would be to go ahead with the offer, even though it's just 20% lower. You are very clear that down the line, the present company may fire you within 6 months. This is my personal experience with one of my candidates where I placed him in one of the large companies. His current CTC was higher, but he accepted an offer that is 25% less than the CTC he is currently receiving. It's better to take the opportunity rather than feeling job insecurity.

Accept the offer. The maximum risk in continuing the current job is that you can lose the job and have to roam around for a new one. The maximum benefit is the same salary.

The maximum risk in accepting the offer does not seem like much. The benefits include gaining work experience in a big company, experiencing a better work culture, having more opportunities to learn, and after say 2-3 years when you would be looking for better opportunities, the best things will be coming to you.

The difference of Rs 15,000 per month may seem significant, but you can potentially get an even higher raise at the next appraisal provided you work well. Accept the offer and go ahead. Good luck.

I think the capacity and goodness of a company is only judged in the sense of its tolerance towards sudden changes in market behavior. You have to carefully assess both companies based on their risk profile. I can summarize some points here -

1. How many current running clients/product profiles do they have?
2. What is the distribution of employees among these projects or clients? If any client quits or the company decides to stop a project, does the company have the capability to reassign the spare employees to other projects or ramp up other projects to utilize the employees from the closed project?
3. What are the future plans of the company? This is really important. For example, is the company recruiting for a project they hope to win (in terms of a tender) or for an existing project? In both cases, you need to conduct background checks on the project and its future.
4. In my opinion, never switch to a lower salary from your current job, whatever the circumstances may be. There may be exceptions if someone is laid off or not working. Nowadays, HR professionals/consultants/directors in companies are very shrewd; they try to influence candidates to accept the package they are offering, under the guise of the company's salary structure. You need to be adept at handling these situations. Ultimately, if you persevere, you will find a good job suitable for you with ample opportunities for growth. I mention the above point because I have seen several people who join at a lower salary due to hometown preferences or other reasons. Most of them are influenced by HR personnel to negotiate salaries, but they fail to earn respect from their colleagues, managers, and directors. Consequently, they lose confidence and are unable to perform well.

5. Which company aligns with your short and long-term career goals?
6. If you excel in your work, the world is yours. Do not be disturbed by minor setbacks, but stay vigilant. Also, consider whether your new company has not laid off any employees. This could also be an important point to understand the expectations of the new company.

From these questions, some you can easily discuss with the interview board/HR, and for some, you have to find answers yourself. However, most of the time, through the responses of HR, you can assess the company's situation.

Hey,

I believe that you have to take several perspectives into account before you make your final decision.

This is an era of recession where it's forecasted that by the year 2009, when it gets over, there will be over 50 million job losses worldwide (International Labour Organization). The unemployment rate in the US has touched the 8.1% mark, a figure last seen in 1983. It's an era of ultimate chaos where the phrase "job security" stands as an obsolete term, with mammoth organizations being reduced to dust using words like cost-cutting, reducing headcount, and sometimes slashing salaries with smart moves and strategies (Jet Airways), with the prevalent dogma being "the last to join are the first to be fired."

Moreover, it's a performance-oriented world where Darwin's proposition of "survival of the fittest" theory seems to hold true.

Another important perspective is the opportunity to learn and grow. If you are not getting that opportunity in your current organization, then it's worth trying to unplug and come out of the matrix.

However, if the current organization is dynamic, well-governed, and consolidated, then you have to give it a second thought because at the end of the day, what you take home is the salary, and that's the plain truth.

Hope you choose the correct path.

Regards,

Akash

Hi,

You can think about these points before making any decision:

1. Don't just focus on your own growth; consider the company's performance, growth, and conduct a complete SWOT analysis of the company and a PEST analysis (political, economic, social, technical) of the industry or sector the new company serves. Check if your growth in the current company is stagnated or not.
2. Consider your plans for the next few months in your current company.
3. Assess the level of professionalism in both your current and potential new company.
4. As a senior individual, you can try to evaluate the future plans of both companies.
5. Investigate why and for how long the position in the new company has been vacant.
6. Determine what factors led them to offer you the job.
7. Evaluate job security in both companies.
8. Understand your current responsibilities.
9. Due to the recession, consider if the new company follows the parent country's HR and business practices and whether its business may be impacted by economic conditions in that region.

The new company may offer you challenges and real-time experiences that you may not receive in your current company for years. I believe you should "come out of the well of sweet water and surf the waves," although money is significant, it is not more important than growth and better profiles. However, ensure to do thorough homework.

Good luck

Hi,

What you've just described is whether you want to be a big fish in a small pond or a small fish in a big pond. Job security versus salary. Given the current general economic scenario, the answer is obvious, but then again, it depends on what segment of the customer the company is serving and what future prospects you see for your company's growth in the future.

Hope your doubt is laid to rest.

Hi,

What I feel is it's better to be a big fish in a small pond than a big fish in a big pond. The only reason I say that is because in bigger ponds, there will be bigger fishes, sharks, and whales. Trust me, you always stand a better chance of being 1st in a class of 20 than in a class of 200. So, I would recommend sticking to where you are!

All the best,
Kevy

The key is whether the people asked to leave are replaced by new recruits with the same skillsets (but may be of better quality) or if they are of a different skillset, exhibiting that employment is related to specific projects. In case the former is true, then as many have suggested, you need to decide honestly whether you are able to fulfill the demands of the organization.

Normally, good small MNC setups are ideal for recognizing good work due to high visibility, and believe me, no amount of remuneration gives you equivalent satisfaction as recognition by management. Large companies may involve a bit of stability - this notion does not hold good in today's times, wherein most of them are looking to control employee costs, and you could fall prey to it in a "wholesale" decision.

All the best,

Thanks a lot for your advice, guys!

I just had a discussion with the MD in the current company to discuss my progress, and she didn't say anything negative; she just said I need to play a greater role in the company. So I take that as a positive sign, and now I am tilted towards staying back in the current company. I am still weighing out the risks and rewards and will decide very soon.

Thanks again.

Hi Guys,

I have decided to take the offer and join the big company. Looking at the market right now, it is very scary as hardly any company is offering any jobs. I don't want to miss the offer that I am getting right now, and even though there is a pay cut of 20%, I don't mind because that is the market salary. Our company was too small, and hence they were overpaying, so I can't expect other companies to match it.

Please suggest whether I am making the right decision.

Thanks,
Revhappy

Hi guys,

I thought I would update you on my situation. It is a happy ending to the trauma I had experienced over the last few weeks. Today, I went and spoke with my company's MD and told her that I want to quit the company because I have received another job offer. She asked me why I was leaving.

I explained that I don't think my performance is up to the mark. In response, she told me that I was wrong and that they truly consider me a valuable resource. She asked me to reconsider staying with the company. Therefore, I have finally decided to stay back.

The moral of the story is: don't assume anything about your performance; go ahead and ask.

Thanks a lot, guys!

Cheers,
Revhappy

Dear Friends,

I have 4.5 years of experience, and I have the opportunity to work in a small chemical firm (startup) with high pay, say 10 lacs. Currently, I have an offer from an MNC, a 1000 crores company, with a package of 4 lacs. I will be part of the core team and will work closely with management if I join the small firm with a good pay package. What do you all suggest?

I am new to the corporate world and exploring. Some of my friends say that I can sharpen my skills by staying in a small firm too. I can implement my ideas. Money-wise, I will surpass my 3-4 years and earn the same amount that I would earn after 10 years of experience.

Please, please give me a second opinion in all aspects.

Dear Friends,

I have 4.5 years of experience and I have been presented with an opportunity to work at a small chemical firm (startup) with a high salary of 10 lakhs. Currently, I have received an offer from an MNC, a 1000 crore company, with a package of 4 lakhs. If I join the small firm with a good salary package, I will be part of the core team and work closely with management. What do you all suggest?

I am new to the corporate world and still exploring. Some of my friends believe that I can enhance my skills by working in a small firm. They say that I can implement my ideas and, financially, I would surpass my earnings from the next 3-4 years compared to what I would earn after 10 years of experience.

Please, I urge you to provide me with a second opinion on all aspects.

Thank you.