Total Compensation

Many people focus on base salary or salary and bonus potential when looking for a job. It's natural, we all want money and money can make life more comfortable.

Challenge: Small organizations don't pay market, or many don't anyway. They can't - the economy of scale does not always work. And to be fair, the jobs are often different. In a Fortune 100 company, a call center manager might manage 100s of people and a budget of 10s of millions. In a tiny company, the call center is three or four people.

But here's the rub - the total work experience is often better in small companies. You can have a lot of impact, blur job description boundaries, and be a part of tight and caring teams. Sure, you might experience this in a larger company, but probably more so in small companies.

The benefits at small companies are generally less. This is just the facts. You should still expect health care coverage and basic vacation pay benefits, but not much more. Small companies often can't offer a lot of upward mobility or fancy training programs. That said, outstanding performers might find that they get promoted more quickly if there are openings (small companies are more willing to roll the dice on high potentials and not get hung up on things like years of experience and degrees or certifications).

Here's the rub #2 - the intangible benefits are higher in small companies. Small companies are often more flexible, personal, and colorful.

What if the most amazing job experience you could encounter this year comes with a pay and benefits package lower than what you think you deserve? Would you consider a role that offers 1/3 less in compensation and 50% more in satisfaction and enjoyment?

Food for thought as we reflect on 2007 and plan for a great 2008.

Comments

[Heather]

I have worked for both the mom & pop establishments and "the man" establishment where I am currently employed and I have to say I received greater job satisfaction when I worked with a smaller company. If I had to do all over again I would have never left of course saying that also means I would not have the knowledge of working for larger company and I would not appreciate the mom and pop enviroment.

[Rob Brooks]

Several people I used to work with were able to take 6 weeks off at once to go travelling. Every single one of them came back and carried on working well.

One of the things my dad always liked about his work was that "If your tooth starts hurting on company time, you can go to the dentist on company time". Hardly anyone tried to push it too far - if they needed to do something urgently, they probably could do it without the need for excuses.

In many larger companies, that kind of flexibility seems to be frowned upon and rules introduced to compel conformity.

[Lisa Haneberg]

Rob and Heather - I have heard other people say similar things and have experienced this myself. The struggle that a lot of people have is the the job at the large company might pay 10, 20 or 30 thousand dollars more. That helps with mortgages and college funds, for sure.

Perhaps if we live more simply (says the girl with a blackberry, three computers, and an addiction to books) we can make small company experiences work and save for the college fun (or geriatric pet care in my case).

[Justin G. Mitchell]

Lisa, that is the key - living simply. As you pointed out, too many people focus on the financial return on their job rather than all the other "benefits" they might get. It's an ongoing struggle even for those who get it.

[job search]

Job satisfaction and benefits are key to your happiness. Great post.