Advantages and drawbacks to working in a publicly traded tech company

This is part one of a two-part article. In this part we focus on the advantages and disadvantages of working for a large, publicly traded tech company. In part two we’ll do the same for working in a start-up.

Even though the title says “advantages and disadvantages,” these are certainly not absolutes. It’s all relative. What one person considers an advantage – say for example, the stability and structure of a large company which gives someone security and a predictable future – someone else may consider prison bars and a dull life devoid of all risks or challenges. It depends totally on YOU.

So we’ll try to list out the characteristics of working for a large, publicly traded company, and let you be the judge. After reading both articles, you can decide for yourself. And even then, realize that these are generalities and there are many exceptions in the real world.

Potential advantages

In general, a large, publicly traded tech company has some typical characteristics.

Publicly traded companies are answerable to their shareholders for their results, and so need to be competitive. They are therefore looking to hire and retain top talent. This can only be done by offering competitive compensation and attractive benefits. They can usually negotiate better insurance rates than small companies and therefore provide better coverage, including medical, dental, vision and so on. They often offer a decent 401k and in many cases company stock options.

Large companies have the need and the resources to provide training for their staff, both in-house and with external education providers.

Because they are large, they tend to be more stable financially. You can count on a regular pay check. You can also expect predictable vacations and paid time off.

A high turnover and continual need for personnel means that there are usually positions open and it should not be too difficult to get hired if you have the right skills.

Their extensive resources and need to be competitive mean they will usually have up-to-date tech as well as the personnel to support it. The office spaces are often modern and well-equipped. In some cases they will also provide day-care, perhaps a staff gym, a restaurant or cafeteria, maybe a dry cleaner or, as – one very large tech company does or at least used to do – have outside dentists, hairstylists and masseuses come to their place of work, rather than the staff having to go to them. There can be many other perks and benefits.

From a career path point of view, having a recognized large company name on your resume can be an advantage.

Because these companies are so large with many different locations, divisions and functions, you can often change your career without leaving the company. If you are already working for XYZ then it will be easier to get another job within XYZ than if you have to start from scratch. There are often opportunities to engage in side activities that interest you, in addition to your regular job.

These companies tend to have a high turnover which means positions become vacant and it should not be too hard to move up the ladder.

Potential disadvantages

Well, all of that sounds great. So many advantages. What are the downsides?

While the pay is competitive, the increases in salary tend to be limited to the standard annual 3% or so to compensate for inflation, unless there is a promotion.

These companies tend to be cautious and conservative and are not meccas of leading edge technology or innovation.

Anonymity, being just a number, not making a personal difference in the company’s success or failure – these come with the size and need of set structure, invariable policies, strict hierarchy and top-down communication. They can be very impersonal and can make the individual feel like a cog in a wheel, even if it is an efficient and successful wheel.

While advancement is possible, there is often a lot of competition for the better positions. It’s not always easy to get noticed.

When a publicly traded company finds itself not doing so well financially, jobs can get cut wholesale (witness  2022 and 2023 and how things are going int he US even as we write this). In fact the recent mass layoffs in many major tech and financial companies we have written about elsewhere tend to prove the point that people in these large organizations are numbers and can be dispensed with.

Change happens slowly.

Your voice may not be heard. Creative thinking is not necessarily encouraged.

While stable and predictable, the job can become monotonous and unexciting.

So there you have the broad strokes. Read part two for a similar look at working in a start-up.