You don’t necessarily have to be part of a big company to bring in the big bucks.
As we wrote yesterday, smaller companies such as Instagram and Pinterest have been able to grow into high-worth organisations despite small headcounts. However, before you consider trimming your workforce, here are some pros and cons to keep in mind.
Smaller companies are lean, mean, fighting machines
Being small in size means the organisation is more nimble and flexible, allowing it to adapt quickly to change. Fewer layers to upper management also mean employees get more visibility and voice, increasing engagement levels.
Decision making isn’t a drawn out process
With fewer people in the company, decisions are likely made faster and with input from most of the team. This not only speeds up the business process, but also means everyone is constantly on the ball with changes happening within the organisation.
Personal growth becomes easier
Because there are fewer people doing more roles, learning and development becomes a natural part of the company culture. Employees are able to hone their skills in multiple disciplines, expand their capabilities and take on more challenges resulting in a more holistic career development path.
Managerial fit has to be right
Despite the easy access to the senior leadership team, a lean organisation is highly dependable on capable managers. By design, small companies have to be open to taking risks and being innovative if they are to compete against bigger players, and so, good managers have to be prepared to support and control the company’s direction.
Small size equals small margin for error
Not having a huge workforce to fall back on or take advantage of can be a big drawback for a small company. Therefore, the leadership team have to be clear on the company’s goals and direction, and put in place systems, people and process to ensure the business runs as smoothly and effectively as possible.