7 Main Differences between Startup and Corporation

Surely many of you are curious about the differences between startup and corporation. Many young people who currently aspire to work on a well-known startup in Indonesia and the world. Not a few who want to build their own startup.

In recent years, Indonesia has been flooded with new companies, better known as startups. These companies offer what has been so troubled by office workers. Offers a high salary, a pleasant workplace, and suitable for young people.

Nothing wrong if then the prestige of startup immediately jumped. But is it true that work at a startup is more promising than conventional, long-established companies or corporate? It’s good if you know the advantages and disadvantages of working in these two forms of company.

Differences between Startup and Corporation

1. Working Hours Difference

The first point, of course, is the thing most people know about, which is a significant difference in working hours. Conventional companies usually have standard and binding hours of work for all employees. If this rule is violated, there are consequences.

Usually, if there are employees who arrive late there will be a deduction of food allowances or other consequences based on company regulations. If these delays are common, the employee’s basic salary can also be deducted.

Such a system does sound rigid and burdensome. However, people who like regularity will fit into work patterns and regulations like this. In contrast to startups, the working hours tend to be flexible.

At startup companies, regulations regarding working hours are more lenient compared to corporate. They are more concerned with work that is completed, not the length of work hours. Even so, there are not a few workers at a startup who work late into the night when there are many targets that must be completed.

2. Culture in a Work Environment that is Much Different

In a corporation, the work culture is known to tend to be rigid and polite because of various bureaucracies and hierarchies. The existence of this rule causes the appearance of boundaries between superiors and subordinates or between seniors and juniors.

In a startup company environment, relations between employees, even though there is a structure of positions known to be more flexible. This allows for more relaxed and two-way communication between subordinates and superiors. Bosses even tend to be friends to chat and have coffee together.

3. Employee Rights Such as Salaries, Bonuses, and Benefits

As a long-established company, the corporation has clear rules regarding salaries, bonuses, and other benefits received by employees. Other things such as overtime pay and salary increases also have fixed rules.

Usually, the amount of salary that an employee earns at a corporation depends on his length of work and position. So, for people who are just working usually still get a relatively small salary. In contrast to startups where people who are new to work can already be given a salary with a sizable nominal.

At startup, especially for those who get a sizable fund, they usually provide a large base salary for their employees. It is true that the benefits provided are not comparable to those of corporate employees. However, salary increases for startup employees are easier to obtain provided they can be proven by their ability and good work results.

4. Career Opportunities and Levels

Job opportunities and a clear career path will certainly be a company attraction for its employees. At startup companies, you will be able to have broader career opportunities. This company is very open if you want to learn new things. In addition, opportunities for promotion also tend to be faster.

Whereas in a corporation, there are standard rules regarding career opportunities and levels. This makes it difficult for most employees to develop themselves. Promotion is also taking place longer than at startup.

5. Future Conditions

Talking about the state of the company in the future, corporate does tend to have a predictable future. These companies have been established for a long time so they are well established and stable. Employees of this company also usually feel they have a guaranteed old age. Plus, corporations also usually offer high severance and benefits.

As a newly established company, many startups still cannot benefit. In addition, there is a lot of competition between one company and another. It really depends on creative ideas and funding from investors. So that the future of startup companies is still difficult to predict.

Companies that are currently very successful can be closed a few years later. This causes the employees of startup companies also do not have a guarantee of a stable job future.

6. Workspace Design

If you visit the startup and corporate offices, you will be able to clearly see the different work designs of the two types of companies. Generally, corporate offices are located in luxury office buildings close to the city center, its differences between startup and corporation.

Each employee has his cubicle which is given a divider between one person and another person. In addition, superiors and employees also have a desk located in a different room.

Startup company offices are usually designed with the concept of open space. Workers usually have a work table that is close together and without a divider. Superiors and subordinates are also usually placed in the same open space.

This makes it easier for a better and simpler two-way communication system. Therefore, on one floor of the same size, startup companies can also accommodate more employee desks.

7. Clothing Rules

Some corporations set dress codes. Monday must wear this model clothes, Tuesday to Friday too. This rule is usually not found at a startup, although not every startup applies the same rules. Some startups free its employees in dressing, as long as they feel comfortable. Even in companies like Google, you can dress minimally as long as you’re not shy.

Working at a startup or in each company has its own advantages and disadvantages. You can choose to work in a company that is more suited to your skills and character. Knowing the differences between startup and corporation can be a reference before you decide where to work.

(Read also: 6 Startup Funding Stages and How to Get Them )