Should you join David or Goliath after graduating?

Start-ups are all the rage today. The improving eco system in India, the headline poster boys and sometimes eye-popping valuations fuelled by VCs and private equity firms rushing to get their slice of the pie, and just the sheer plethora of smart ideas to meet latent demand often boosted by technology enablement, have meant that the start-up space has never looked rosier in India than it is today.

And this has meant that every young engineer or MBA now has a cross road to consider at graduation. On the one hand are the “Goliaths” – The blue chips and the big names and household brands, in FMCG, Banking, Engineering & Telecom and the consultancies. On the other are the slew of start-up “Davids” with their slingshots at the ready – some nascent, others already big by virtue of their valuations and proven business cases, who are making a beeline to the Engineering and MBA campuses in particular, to snap up the best and brightest there.

The case for joining start-ups is by now familiar to everyone – you get a higher responsibility at a young age, job breadth, ability to make a difference to the big picture and last but by no means least, the potential wealth creation opportunity through stock options and grants. However there is the other side of the coin to be carefully considered as well. Here are my two cents on why joining a Goliath should also be carefully considered by every young graduate passing out today.

1. The learning opportunity : During the first 4-5 years post college, the number one criterion , in my view, that graduates should look at, is the opportunity to learn and grow. Develop core competenies. Understand their strengths and skill sets. And large organisations, with their highly structured training/rotation programs and evolved HR structures, are a logical place to facilitiate this. And exposure to the systems, processes and decades of organization learning certainly does sharpen the saw in terms of growing as a professional.

1. The enhancement to your CV – When I look around at the folks who are occupying the C-suites and corner offices today, most of them are alumni of blue chip organisations – and their careers have benefited immensely by having the blue-chip notches in their gun barrels. Ex-Unilever, Ex-Citi, Ex-McKinsey, Ex-Coke.. the list goes on. And this is certainly a tick in the box for my headhunter colleagues as well they prowl for talent and fitment.

1. Making the transition from an established Firm to a startup is easier than the other way around. Look around you and see who is staffing up middle/senior management positions Amazon, Google, FlipKart, MuSigma or Micromax and you will see exactly what I mean. This becomes even some accentuated if you look at functional roles – Finance, Risk, Marketing, HR where start-ups do look for the strong foundations that candidates have built at the big names, and therefore the experience that comes with the territory.

1. The Goliaths are getting their act together. CEOs and HR Heads of these big companies are not unaware that they will lose the war for talent if they don’t get out their A game to attract and retain Gen Y.. Their HR policies and employee engagement programs therefore are swiftly and rapidly evolving in response – flexi time, leave donation, intrapreneurship options, mentorship programs, funding higher education.. I am amazed by the sheer breadth and range or programs that were not even thought of even 5 years ago, and the swiftness with which the “put employee first” credo has picked up pace. So these are employers who are cracking the code on making it a great place to work

1. Lastly, remember for every Zomato or Make My Trip or Flipkart, there are 99% of others who stumble and fall at the first hurdle – whether it be for a poorly crafted business case, lack of funding, competition or market forces. And while the valley rallying cry of “let a thousand flowers bloom” is absolutely the right philosophy to further the “idea generation” age, think about the potential impact on your career if this eventuality occurs. And what your options may or may not be if this comes to pass...

The race is not always to the swift nor the battle to the strong.. but that’s the way smart money bets. And that ends my contrarian submission.