At some point during your jobhunt, you might be asking: Should I work for a startup company as a fresh graduate? Here are seven main drawbacks of beginning your career at a startup company.
Job security is low in a startup
Even for employees with a permanent contract, job security with a startup is not very high. It is a fact, that many startups fail or temporary run out of funding forcing them to cut staff. Be aware: Neither charismatic founders nor innovative ideas make a startup immune against these problems.
Your accomplishments in a startup might not be recognized by a large corporation later on
If your ultimate goal is working in a big company, start your career after graduation in a big company if possible. Whatever you accomplished in a startup, however much experience you got from your time there, it does not count as much for a big company.
Work experience with a startup is definitely better than no work experience at all, if you apply with a big corporation later on. Yet, being “head of [enter department of choice]” in a startup does not score you the “head of” position in a large company. Both positions are not comparable by any means.
And yes, some companies might value the fresh perspective you bring to the table. But when push comes to shove, they preferr candidates with experience in a big company for corporate positions.
Advanced training opportunities are limited
Without a doubt, the learning curve in a startup as a fresh graduate is steep. However, this is not reflected in the formal certificates or trainings. Startups invest disproportionately little in the formal training of their employees. This is due to constraints in funding. Another reason is the smaller number of employees able to fill in for a colleague on training. Expect having to fight for advanced level courses or workshops.
You are accountable for results
Great news for eager young professionals! In a startup company, you get a lot of responsibility. The downside is that there is no plan B. There is no contingency plan. And often, there is no more experienced colleague to ask for help. You are personally responsible for stuff. But if stuff does not work, it keeps you up at night.
Workload in a startup can be very high
Usually, the founders are extremely passionate about their startups and thus are giving it their everything. Consequently, they demand the same level of dedication from their employees. Working hours and workload can thus be high at times.
Startup companies normally do not have a proper onboarding program
In contrast to large companies, small startups do not have an onboarding program for new employees. Also, larger companies often make a plan for the first few month of on-the-job training. For fresh graduated this helps to adjust to the working world. Such onboarding programs are not offered at startups. New hires are thrown into cold water and have to learn fast.
Job titles and promotions might come without pay raise
Even with little work experience, promotions and fancy job titles are well within your reach. This is a good thing. A recognition in form of a “well done” or a promotion to a new role boost the confidence of any shy young professional. But, be aware that those recognitions often come without an equal increase in salary.
All that said there are upsides of working for a startup company as a fresh graduate as well. Read about them in the blog article “Eight reasons to work for a startup as a fresh graduate”.