Working at Big Tech vs Startups: An Insider's Guide

Hey there future software engineers! Today, I'm pulling back the curtain to discuss the differences between working at big tech companies and startups. With experiences at both types of organizations, I've got some keen insights to share. Let's dig in.

Defining Big Tech and Startups

First, let's set the stage by defining what we mean by "big tech" and "startups."

What is a Startup?

• Employee Count: Typically fewer than 1,000 employees
• Funding Stage: Recently funded or still in the fundraising phase
• Brand Recognition: Often not well-known, building their reputation

What is a Big Tech Company?

• Employee Count: Usually over 1,000 employees
• Stability: Established and often profitable
• Brand Recognition: Highly recognized brands, e.g., FAANG (Facebook, Amazon, Apple, Netflix, Google)

Recruitment Strategies

Startups

• Outbound: More proactive in reaching out to potential employees.
• Experience: More willing to hire and train people with less experience.

Big Tech Companies

• Inbound: Receive a massive amount of job applications.
• Experience: Typically look for more experienced individuals.

Onboarding and Training

Once you land a job offer, the real journey begins. Here's what you can expect:

Startups

• Limited Resources: Less structured training programs.
• High Expectations: You're expected to hit the ground running.

Big Tech Companies

• Structured Training: Comprehensive onboarding processes.
• Resources: More support and time to get up to speed.

Nature of the Work

Interestingly, the core software engineering tasks are similar across the board.

Common Across Both

• Task Allocation: Both involve pulling tasks from a backlog.
• Learning: Research and execution are fundamental in both environments.

Work-Life Balance

This is where some notable differences come into play.

Startups

• Hours: Expect around 50-60 hours a week.
• Team Dynamics: Often work longer hours due to smaller teams.

Big Tech Companies

• Hours: Generally around 40 hours a week.
• Flexibility: More resources mean better work-life balance.

Growth and Career Progression

Everyone wants to grow, right? Let's see where you can sprout faster.

Startups

• Fast-Paced Learning: Broader scope of responsibilities.
• Quick Promotions: Easier to climb the corporate ladder.

Big Tech Companies

• Competition: Higher competition for promotions.
• Red Tape: More bureaucracy can slow down career progression.

Compensation

The big question—how much will you make?

Startups

• Lower Salaries: Generally offer lower salaries.
• Stock Options: Potential for exponential gains if the startup succeeds.

Big Tech Companies

• Higher Salaries: Substantially higher initial salaries.
• Stable Income: More financial stability.

In the end, the "best" place for you to work depends on your career goals and lifestyle preferences. If you're a risk-taker who loves rapid growth, a startup could be your playground. But if stability and work-life balance are crucial for you, big tech could be your haven.

Work

At a startup, you tend to be able to work on whatever you want, and have the opportunity to wear more hats. Note that this is note true at all startups.

On the flip-side, there's a tendency at larger companies for employees to develop a specialization. Typically you're working on a very specific team, but may feel pigeon-holed at certain points. There might also be points where you feel like a cog in a machine.

At startups, the tendency is more greenfield new feature work. At a big company, the work centers more around maintenance and building upon that which already exists. Either could be preferable depending on how rigid or fluid you like your solutions.

Expect to work longer hours at a startup. Expect to work shorter ones at a larger company.

Compensation

Startups are the higher risk-- the business can disappear overnight, through no fault of the employees. At the same time, if you're one of the first hundred or so employees, you may do very well in the event of an exit.

Large companies are lower risk, but as a result, you won't be compensated as well as a unicorn startup exit (but still significantly more than a startup failure).

Team and People

This varies-- the biggest thing to note is that talented people and engineers exist in companies of all sizes.

There is a tendency for people at startups to be more mission-driven. Most folks get into the startup game, if not for the lottery ticket, to make a large dent either at the company or in the industry.

This tends to be less so for tech giants. At a large company, due to pure numbers, you're more likely to find similar-minded people. But you might also find more bureaucracy and layers of approval. There are also more teams to pick from.

Prestige

Large company wins here.

The best thing to do is to try getting experience at both kinds throughout your career, and see which you prefer.

One Pager Cheat Sheet

• Jake, who has personally worked at dozens of software companies, both large and small, shares helpful insight into the differences in recruiting processes, training and onboarding, work/life balance, growth, and compensation between large tech companies and startups.
• At a startup, you typically have the freedom to work on whatever you want and wear multiple hats, whereas at a larger company you develop a specialization, often feeling like a cog in the machine, but with shorter working hours.
• Working at startups has a higher risk but potential for a big return with an exit, while large companies offer more stability with lower compensation.
• Talented people and engineers exist in companies of all sizes, but mission-driven culture is more common in startups, and more bureaucracy and layers of approval in larger companies.
• Large companies typically have a greater prestige than smaller companies, but it is beneficial to gain experience in both sizes during your career.