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Size matters – comparing corporate vs. startup life

(BUSINESS) There are tremendous differences between working at a corporation and working at a startup. Let’s discuss them in depth so you know if you’re on the right boat!

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large company vs. startup (image of two ships)

Where do you work? Take a second and answer that.

Did you feel that spark? Was your first emotion positive or negative?

I’ve been on both sides of the coin.

On one hand, it can be a delicate feeling that illuminates your life, where you just know you’re on the right path.

On the other, it could be a marathon with no end in sight. You could describe what you do, and be proud of your accomplishments, but you couldn’t very well explain why you do it (besides the money, we all knew that).

If you’re not on either end of the extreme, then you fall somewhere in the middle.

Our profession is a key part of our life. Its an identity or a person we become, and we spend over a third of our lives as this person.

Isn’t it worth it to evaluate how you feel about work? How to recognize what makes a good job good? How to work towards something we love?

It’s time to be honest about what work means to you. There is no reason to be apathetic about your place of employment.

You’ve heard the adage, “Mondays aren’t so bad, its your job that sucks.”

In this multi-part series, I’ll discuss the factors that can make a job invigorating, and provide you real ways to predict and measure satisfaction.

In this article, I’ll give you the hidden pros and cons of working at large corporations versus small companies and startups – using boats as a metaphor.

Size matters.

When joining a new company, a huge factor to your happiness will be company size and the organizational structure.

How large companies are different.

Large companies are like a capital ship cruising through the ocean. Outfitted with the a vast amount of resources and crew, the voyage is easy. A ship that large moves slowly, and life on board is not overly exciting. Each crew member has a specific, well-defined job, orders are followed to a T, and it becomes difficult to stand out. Crew members are regularly replaced.

large ship

Let’s talk about systems at large companies.

Despite outward displays of a flat hierarchy and fair company structure, it is the nature of large organizations to be bureaucratic. There are too many moving pieces to handle things case by case. In these organizations, there will be systems in place which serve the company at large rather than specific people or projects within.

This results in decisions you might find unfair or rules that seem to have no good reason behind them.

For instance, at large companies, you could be hired three days after a promotion eligibility cycle and be ineligible for promotion that year, even if you exceed all other performance criteria.

In the same vein, large companies inevitably have tremendous internal competition. There will be thousands (yes, thousands) of new hires like yourself looking to get a raise or promotion. It becomes hard to stand out, and politics can become a factor in your career trajectory, which is the norm for large companies.

Lastly, there is a lot of luck at play. It is common for the hiring managers and department heads to pick from the new stack of people. There is usually no hiring group that optimizes placement based on merit and skills, the first year of career can be dictated by your entry point into the company, a decision made by a stranger.

Its inevitable for large groups to develop power structures.

These structures often control the trajectory of the individuals underneath them – which can be very limiting to your career.

Unfortunately, you can be put in a position to pick people and alliances over the correct course of action; it is simply the nature of the game at a large company, and even this can be enjoyable for some.

As you move higher up the food chain, you will need to play this game in order to survive. The competition is simply too high, and the needs and wants of those within said power structures will always overshadow those not within a group.

You can tell I personally value career advancement from the negatives I perceived at larger companies. There are still a lot of positives, too.

One major upside is career stability.

It’s unlikely you will be laid off without knowing in advance at a large company. You can depend on a large company to employ you for several years, even when markets change and layoffs begin, you often get plenty of notice and can plan your exit.

Another (serious) upside is benefits.

The benefits are usually quite good, you receive nice equipment and can get reimbursed for extras. Health insurance and retirement savings options are seamless and setup quickly. Most companies also emphasize continuing education; there is no better way to keep your skills sharp at work, so take advantage of any resources you receive.

Networking is very different at large companies.

Any large company with a healthy culture has great internal communication. There are often groups based around each functional group (technologies, financials, design), and you are free to reach out to anyone.

You would be surprised at the people that would respond to an interesting email. Managers, even directors will typically make time to hear what employees think, even if its just to gather intelligence.

There is great ease in this environment.

There’s no doubt about it – working at large companies can be a lot more relaxed. All performance is measured proportionally to the group.

This is a double edged sword, it means you can coast or put in little effort and survive for quite some time. It also means it’s much harder to be promoted based on achievements.

There are 6 questions to ask yourself about working at a large company.

1. Is performance measured with respect to your experience level? Is there a quota or limit on the number of people that can be promoted?

2. Are there any rules or regulations regarding career advancement?

3. How easy is it to get transferred to another department, role, or project?

4. What are additional benefits aside from healthcare and retirement? What are the best ways to take advantage of them?

5. How open is the company to internal communication? Are there knowledge groups for your particular area? What extracurriculars can you get involved in?

6. How long do people typically work at this company? How long does it take them to get promoted from each level?

How working at a small company or startup is different.

Small companies are like a small warship. Agile and maneuverable, they avoid stormy weather. Each member of the small crew is invaluable, their job functions are crucial, and they often have multiple responsibilities. The ship moves a lot faster and consumes less resources, but could face peril in a storm.

speedboat

At smaller companies, we figure everything out together.

Depending on what stage the small company or startup is in, rules and regulations will be in development, or even non-existent.

This means although there aren’t as many resources for you to follow, and you could be the one to define your company’s processes.

If you’re a resourceful person, or you enjoy improving existing structures – you would enjoy the opportunities faced at a startup.

If you work better under well-defined and directive leadership, then you might fare better in a corporate role.

This means there are less obstacles between you and your work. There is a smaller hierarchy for you to consider when making decisions, and you will most likely complete work faster and can accomplish more.

You will have a better chance to take lead on projects, which often leads to quicker promotions as the startup grows.

However this also potentially means that things are being mismanaged by the lack of different perspectives. Beware of small companies in bad situations due to their past decisions.

It’s definitely more flexible.

On par with less regulations, there are less employee standards you have to live up to – this means you may be able to get flexible working arrangements.

But of course, there are sacrifices.

During intense periods at a startup, you cannot hide behind the accomplishments of your team – it simply isn’t big enough for that.

Everyone must do their part, and everybody’s part is crucial to the company as a whole. No coasting allowed – you will need to put in the hours to get the job done, no matter what, or risk consequences for the entire company.

This could be perceived as a negative to some people, or a learning and growth experience to others.

There may be a time where you will need to make sacrifices to ensure the company’s well being. This may mean staying late, putting off friends and family, etc.

Your life may revolve around work for more than 40 hours a week. At large corporations, you can get away with doing the bare minimum for quite some time.

I’m not trying to scare you, and a lot of this depends on the startup, but you need to be aware of the trying times that every startup goes through – when it’s make or break.

Within a small company, you will always be around the same group of people.

This makes the relationships between you and others paramount.

Negative sentiments between team members lead to a loss of trust and a failure of the business. This is why small companies will always hire culture-fit over experience.

I urge you to build one on one relationships with everyone at your small company – you will need this trust later on. At a larger company, you should definitely make friends, but know that you might not end up friends with everyone, and that’s alright. At a larger company, you can may end up being transferred or assigned to a new project.

One major advantage is the opportunity for growth.

You have tremendous opportunities, as most individuals in a startup are wearing several hats, especially pitching to partners or potential customers.

You will have the opportunity to pivot or take charge of the role you want, as long as you take initiative. Enjoy this freedom, and your help in these other areas will be appreciated.

If you take advantage of the opportunity, and become a valued and reliable part of the team, then there is no doubt your satisfaction will grow along with the company.

I would recommend you go above and beyond within the area for your role, establishing expertise and consulting for the rest of the group. You can eventually identify other areas that the startup needs help with and repeat the process there.

The elephant in the room is the risks involved.

Unlike large corporations, startups usually face formidable threats to their existence. There will be work that will be crucial for the company to become profitable, and failure isn’t an option.

This means if you show signs of being unable to handle it, you may be let go sooner rather than later. Even worse, if you end up flubbing a major project, everyone may be in jeopardy. That’s a lot of pressure.

There are 6 questions to ask yourself about working at a small company or startup.

1. How are you getting along with others?

2. What rules and regulations exist for your job function?

3. Can you recommend company practices; are they open to change?

4. How have the responsibilities of other people on your team changed over time?

5. What critical tasks does your team handle?

6. What happens if someone fails at their task?

7. What other areas of the company do they need help with?

No matter what ship you board, know that you always have the freedom to board another.

Do not settle for a trip in the wrong direction, at the wrong speed, or where you are not the captain – if that’s what you want.

Explore your available options, and you’ll then have the perspective to say: I have a great job.

Sarim Q, known as the tech.romantic, is a professional & creative coach for the tech, art, and entrepreneurial spaces. He shares personal strategy with ambitious readers, giving advice on productivity, networking, marketing/branding, technology, and startup strategy. After working with global consulting firms, startups, and running his own digital agency, he now offers his professional approach to personal pursuits. He is the Co-Founder of Socio, an experimental new social education platform, where you learn secrets of self, how to gracefully navigate social groups, and the process of building a legacy of your own.

Business News

5 ways employers can avoid age discrimination when hiring

(BUSINESS) Sometimes intentional, sometimes not, age discrimination is costing businesses big these days – make sure you’re hiring fairly and not taking unnecessary risks.

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age discrimination settlement EEOC

The Age Discrimination in Employment Act of 1967 makes it illegal to discriminate against employees aged 40 and up. Federal law applies to employers with 20 or more employees.

In Texas, for example, it’s illegal for private employers with 15 or more employees to discriminate based on age. A Federal Court has ruled that age discrimination is only illegal against employees, but AARP has asked the Supreme Court to weigh in.

The EEOC received over 16,000 age discrimination complaints in 2018, which is lower than previous years, but it’s not something your business wants to deal with. Age discrimination just cost one Texas employer more than $85K for casting off an older worker. Avoid costly claims and fines by making sure that your workplace is discrimination-free.

1. Watch how you describe jobs.

Identifying a position for a “young” tech-savvy college student could be misconstrued as age discrimination. Avoid using terminology that makes indicates that a person must be younger to fit into your culture. Rather than try to find the right words to fit the person you’re looking for, describe the job itself.

2. What information do you really need on a job application?

It’s not illegal to ask a person’s age or when they graduated high school, but it is illegal to use that information in determining whether you’d hire them or not. Asking for that information could be used as evidence that age influenced a hiring decision. Choose questions carefully on your company’s job application. Talk to a good recruiting specialist or lawyer to help you stay out of trouble.

3. Watch what you say during interviews.

Collecting information about someone’s age during an interview could also get you into hot water. Don’t bring up children or grandchildren. It seems innocuous enough, but if the person makes a complaint to the EEOC, it could come up again.

Make sure interviewers know what types of questions could be inappropriate. Have a structured interview guide that provides consistency across applicants, regardless of age. It is also a good idea to keep good records about how decisions were made.

4. Be aware of diversity and implicit biases in the hiring process.

There’s plenty of research that demonstrates implicit bias in hiring. Implicit bias describes the attitudes we have toward others that we’re not really conscious about. This could include stereotypes about retirement or that an older person might be uncomfortable working for a younger manager. Implicit bias is what makes you choose someone based on a similarity to yourself, rather on their skills. Look around your office and see if you have a diverse workplace.

5. Avoiding age discrimination isn’t about quotas.

To fight age discrimination, you can’t just focus on how many people you employ of a certain age group. You have to really look at the overall culture of your organization. Telling hiring managers to hire someone over the age of 65 doesn’t change attitudes.

Educate your managers about age discrimination. Encourage your team to interact with people of all ages, whether through volunteerism, classes at the local college or book clubs. Eliminate biases that cause age discrimination by widening your social circles. Seniors bring a lot of experience and soft skills to the workplace that can benefit your business.

Bottom line: Don’t discount someone based on age.

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Business News

Mystery: Who is Henry Hawksberry, ghost author of ‘Is WeWork a Fraud?’

(BUSINESS NEWS) WeWork has been a hot mess lately, and the public got involved after a list of egregious infractions was published on Medium, but the author is a ghost and no one has noticed. Who the hell is Henry Hawksberry!?

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Who exactly is Henry Hawksberry? Are you ready for a good conspiracy theory? Oh good, me too – put on your tinfoil hat and buckle up, because it’s about that time!

Yesterday, in our real estate section, I broke down how the wild WeWork IPO withdrawal could impact the residential real estate industry. Part of that breakdown was referencing the WeWork drama involving made-up accounting practices, tax ducking, wild spending from deep pockets, shady business dealings, and a fleecing of historic proportions.

By now, we all know a lot of what happened, thanks to Henry Hawksberry who penned the viral “Is WeWork a Fraud?” scathing blog post illustrating point-by-point the “ponzi scheme.”

But something bugged me.

Who IS Henry Hawksberry? I started digging and no one has picked up on the fact that it’s a ghost. A shadow. A phantom. A specter. Yet this one blog post has been republished dozens of times, and referenced thousands of times.

Let’s dig into these breadcrumbs:

1. Henry Hawksberry’s original Medium post (which is what everyone linked to, retweeted, and republished) has been deleted. By Henry Hawksberry.

2. But not just the story, the entire Medium account that posted the one blog post has been deleted. No one seems to have noticed, given that it has been republished so widely.

So, I went to the Wayback Machine, and there is only one instance of that account ever being captured – on September 20th, there was one blog post, a profile picture of someone skiing, they followed one person (which is not clickable, so that doesn’t yield any clues) and were followed by 70 (no surprise there since his post was already viral by the 20th).

3. You are prompted to set up a Medium account with a Google or Facebook account, so we dug for both looking for “Henry Hawksberry,” yielding zero results. Same with LinkedIn. And Reddit.

And, although his name is mentioned on Twitter endlessly, every single instance (yes, I read every. single. tweet.) is in reference to this one blog post. There is no account under the name “Henry Hawksberry.”

4. But Twitter is where it gets slightly interesting. There are three tweets that noticed this person is a ghost.

One British fella took issue with Herny calling WeWork out for lack of transparency, but is non-transparent, one guy posits that it’s a pen name, and an Irish fella questions his identity but immediately moves on.

The very first perked ear was from Peter Yang:

Note that this tweet has two retweets and 7 likes. In case anyone unlikes it, here is a screenshot of all Likes:

Note that one of the likes is from @ProfGalloway himself. More on that soon…

“Motorman” has a quick conversation asking who Henry is, but mainly to point out that Henry criticizes WeWork’s refusal to be transparent while ironically, Henry is doing the same. But the topic dies quickly and no one else gets involved.

Here we go – finally someone saying the very thing that I’ve been digging into. But the conversation dies and no one else on the planet ever picks it back up. Bizarre.

5. So I emailed Professor Galloway, who in the first tweet above, was referenced as the potential ghost. He liked the tweet but didn’t comment or retweet. Scott Galloway did write a blog post that same day, entitled “WeWTF, Part Deux,” referencing Henry Hawksberry as a “pen name, I think.”

Last night, I emailed his NYU Stern address: “I *have* to know – are YOU Henry Hawksberry? Is it a pen name? I saw someone ask (potentially in jest) if you were Henry, and no one responded or noticed, but you were one of the 7 ‘Likes.’ Is it you? If not, any theories?”

He responded, minutes later, “Who is Henry Hawksberry?” and nothing more.

I wrote back, “LOL okay… He penned the original “Is WeWork a Fraud?” (republished here) and you referenced him in your “WeWTF” blog post…” and he went silent.

This is still of interest, so keep this point fresh in your mind, I’ll circle back to it.

6. An entrepreneur in Zurich calls Henry out on Medium for being potential fake news, asking who Henry is, and it has 33 “claps” which are similar to “Likes” on Facebook, but zero comments. It went nowhere.

7. Oddly enough, RealClearMarkets has a blank profile page. The site is a product of RealClearPolitics, which is an actual trusted publication, so that’s a strange question mark. They have not responded to our request for comment.

8. Google has indexed 0 incidents of the name “Henry Hawksberry” aside from this one story and references to it – I reviewed every single instance of his name as indexed by Google. Dead end.

9. No comments by “Henry Hawksberry” were found anywhere at all which is usually the giveaway. Even when using a pen name, people will accidentally say something in a forum under that name years ago, but not this ghost.

10. I had hoped that perhaps I could piece together the relevance of his name – maybe it’s a nod to a famous historical figure in tech or business that would unlock this person’s true identity or goals, but I didn’t get anywhere with that either.

Hawksberry is a place in Australia, maybe a body of water in Brooklyn, but other than that, it’s a mystery.

So who is Henry Hawksberry?

Reading this, you’ll imagine that it’s Professor Galloway, and there’s a fine possibility of this, given the immediate silence.

However, my instinct is that the person who penned the blog post in question is close to WeWork, likely a former employee. Not a receptionist or event coordinator or someone at that level, but someone with real insider knowledge, likely at a Director level. Higher than that, and there would probably be too much at risk with stock options.

The author is also extremely well informed and had a firm grasp on the historical context of the timeline, and the writer’s diction level indicates they’re likely well educated.

A tech insider opined to me privately that it could be someone that has had full access to everything at WeWork, like a sysadmin who is acting like some sort of whistleblower.

That could be possible, but it seems more likely to me that it’s someone who removed their original blog post (without anyone noticing), knowing that it could potentially be used to identify them by leadership at WeWork, which would again, put them probably below VP status, and probably not currently with the company.

I’ve been obsessed with the WeWork melodrama, and I’ve had plenty of private conversations about it. But this Henry Hawksberry is the part that has really gotten under my skin. I’ve tested my gut against others that I trust, and we all agree that this is a real head scratcher.

It could be Gwyneth Paltrow for all we know (if you read the original blog post, you’d get the relevance of this jab).

Perhaps the fact that this person left no breadcrumbs IS a clue in and of itself.

Feel free to share any insights in the comments – maybe you have the key to solving this mystery??

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Business News

Price-predictable subscription to legal help for startups

(BUSINESS) Startups in growth mode need extra help, and legal services is not where successful companies cut corners. Check out this subscription option for your growing company.

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handwriting

If you’re running your own business or are planning to start one, legal help is probably low on your list.

Most of us have access to free resources from your local Chamber of Commerce or state website, or may have a “friend” who can help you with the forms and other things.

For a lot of things, a DIY attitude won’t cost you much. You could float your own drywall for example. But when it comes to the law, you must trust an expert. Trying to cut corners on legal expenses can cost you a lot in terms of liability or lead to a few headaches, disputes, and litigations. And even if it didn’t cost money, it will cost you time.

Fortunately, you may not have to pay a lawyer directly, as there are several online solutions, including LegalZoom or LegalShield that can help you with forms, provide advice or help you get your business started. Legal advice could cost you hundreds per hour, but it doesn’t have to be that way.

Although online legal services are available, one thing that may be challenging for startups is that it can be difficult to budget for: cost transparency isn’t always available and it may be contingent on demand, time and resources.

Atrium is legal firm specifically designed for startups. This firm was founded by Twitch founder Justin Kan, and Silicon Valley lawyer, Augie Rakow in response to what his needs were as a startup: fast, reliable, and transparent services.

To date, Atrium boasts 890 completed startup deals; $5B raised by companies, and 10 companies started by it’s members. Atrium breaks down its services into four areas:

Atrium Counsel – which provides standard day to day legal processes, including board meetings, NDS, contract/personnel review, etc. – this is available as a subscription service or if you have unique needs, there are special projects available.
Atrium Financing – to help work with venture capital transactions and help explain the deal and it’s process, including upfront price estimates for advice with pitches.
Atrium Contracts – to help with contract review and form generations.
Atrium Blockchain – to help provide legal advice on the many regulatory issues involving blockchain issues.

Atrium’s major competitive advantage is the end of the billable hour paradigm and the focus on subscription models. This is great for a startup in growth mode because you can get a lot of value for a fixed price.

That said, Vitality CEO, Jamie Davidson said, “Just had a call with these folks. You pay a minimum of $1K a month (based on your company size) to be able to ask them questions. You then pay above-market prices for actual legal needs, like privacy policy/TOS generation ($5K), GDPR ($10+K), etc. Our current lawyer does not charge me to ask him questions, but he does charge for actual legal work.”

Others have noted Atrium’s technological advantage and expertise, so mileage could vary.

If you find that community resources aren’t available or not meeting your needs, Atrium could be the service that helps take you to the next level. If you’re considering shopping for legal services, check out Atrium’s site, get to know their team, and see if it’s the right fit for you. The bottom line is that there are a lot of places to cut corners for your growing business, but legal services are not one of them.

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