High-level accounting and finance professionals often have a strong preference when it comes to choosing between signing on with a public or a private company. Each can lead down a different career path—the generalist at a private company, or the specialist at a public corporation.

Public or private?

“I've had many professionals question whether they should consider opportunities at one or the other,” says Peggy DeMuse, Managing Director of SALO Project. “Even though there are additional accounting-related compliance concerns, most of the differences come down to company size, rather than whether the company is public or private.”

Warren Lochner, also of SALO Project, agrees: “It depends on the business' situation. Large, public companies sometimes invest more money in recruiting and retention, but there are also small, private companies who believe in spending to get the right talent and create a business environment conducive to retaining that talent.”

But, Ken Heisler, Director of SALO Search, cautions: “Keep in mind that once you have left a public company and been out of that arena for a while, it's difficult to return to it.”

When you weigh all of the options, there are benefits to working for both large and small companies—and exceptions to every rule. The choice depends largely on which culture you feel you'll mesh best with.
Here are some of the best benefits of working at either large or small companies.

Small Companies

Gain Skills in a Variety of Areas

“If you've spent a lot of time in large companies, working for a smaller company will absolutely provide you with additional skill sets to round out your professional experience and qualifications,” says DeMuse.

“In a well-run small organization, there are several people who know how to do each task,” says Julie Tanaka of SALO Project. “It takes the pressure off, and mixes it up a little so employees can move around between departments and gain a wide variety of skills.”

“Small companies offer more flexibility and less need to ‘go by the book.' This means more of a person's talents can be used. Not only do employees get more experience, but they tend to be happier in positions where their abilities are used more effectively,” says Richard B. Wright in his Chief Executive article “The Advantages of Being Small and Private.”

Big Fish in a Small Pond

Candidates sometimes assume they will have fewer opportunities for growth at a small firm, when in actuality, if the company is growing, they will have many opportunities to grow with it. In a small office, your achievements will be easily noticed, and you're likely to be rewarded for them on a regular basis.

“At a small or midsized company, it's easy to keep people challenged,” says Lochner. “And when you're visible, you're often given new responsibilities quite quickly.”

More Flexibility

Smaller companies have fewer policies, procedures and red tape in place than their larger counterparts. This means everything can happen at a faster pace at a small company--from hiring to promotions to approval of vacation time.

“Having too many people in the hiring chain can slow things down,” says DeMuse. “The smaller the organization and the closer you are to working directly with the hiring manager, the quicker response time you can get.”

Smaller companies are known for offering flexible work schedules, telecommuting options and other perks personalized to their team of employees or to individuals. Lochner, who has worked for small and large companies alike, says, “At small companies, you really build a cohesive group. Managers get to know their employees well and understand how to accommodate people.”

Large Corporations

Compensation and Benefits

Experience with a well-known company can boost your credentials. And, large companies often have the upper hand when it comes to compensation and benefits.

A large company is more likely to offer high-quality, comprehensive insurance that includes health, vision, dental and disability. They also give added perks such as subsidized company gym memberships or childcare--and their technology and training opportunities are top-notch. In addition, large companies typically have more opportunities for advancement.

Opportunity to Specialize Skills

“In a public company you're often dealing with public records, disclosure and scrutiny. They want consultants with skill sets in financial reporting,” says Tanaka.

Especially in the accounting and finance world, public companies can be a great place to specialize your skills. You may perform one function, while other members of the department take care of other needs.

Another difference is the pace: “Deadlines for financial reporting, as well as requirements and turnaround time tends to be more intense at a public company,” says DeMuse. “The public company SEC reporting experience is great to have, because there is high demand for those skills.”

Formalized Policies and Procedures

While there may be exceptions, large companies tend to be bound by policies and procedures.

“Everyone is driving toward shareholder results and trying to meet analyst expectations,” says DeMuse. “There's a sense of urgency around being profitable and making sure you are meeting those expectations.”
Candidates sometimes believe formalized policies and procedures may mean stress. But there can be benefits to formal systems: Many are put in place to make sure the company meets employee needs as well as its own performance goals.

Policies can give employees a clear understanding of how their performance affects other team members and the company as a whole. Policies and procedures at large companies help employees get a better overview of the company and their place in it.

“Performance review systems ensure communication and create a culture where you have regular, ongoing feedback to keep employees motivated, recognizing their strengths and where there are opportunities for improvement,” says DeMuse.

When deciding between a small and a large company, there is a wide range of benefits and opportunities to consider. But more than anything, the choice is a matter of your personal preferences, priorities and working style.

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