ED 44

of MNcs and sMes
The existing
distinctions
between sMe
and MNc
Why do people usually prefer to work for
multinational corporations (MNCs) rather
than small and medium enterprises (SMEs)
and what can SMEs do about this? On the corporate
whole, there are a lot of measures as to why people
compare MNCs with SMEs.
In an MNC, there exists many opportunities for regional
exposure, as most MNCs have regional offices around
the globe and opportunities for global movement is
a lot higher compared to SMEs. However, SMEs do
have their advantages as they are still growing and the
potential for internal promotion is a lot higher when the
company is expanding.
In SMEs, employees do face certain issues which
affect the stability of the company, such as salary
accuracy, salary package and the company’s workflow
and processes.
Salary packages in SMEs as compared to MNCs are
slightly lower, since MNCs can afford to pay relatively
higher and overall better packages. But SMEs in
the current market are increasingly upgrading and
following market trends as well. When told that their
salary budget is not within the market range, most
SMEs are very receptive and accepting of this. For
MNCs however, they have a salary banding on the
corporate ranking, therefore budget is usually not
mA r k E t in t E l l i gE n C E
extended unless the candidates have very good experience allowing
the employer to push the banding upwards.
When it comes to company processes and workflow, MNCs have a
very standard regime as compared to SMEs, since these processes
have been tested and proven right from past years’ experiences. SMEs
have the problem of establishing proper processes, as they are still in
the stage of testing and getting it right. Nevertheless, the workflow and
processes just need time to fine-tune and get right.
a small pond?
There are a few things that SMEs should be focusing on if they do not
want to lose good candidates to competitors. Firstly, they should look
into the salary packages to secure good and valuable employees and
these employees will be assets to the company. Employee benefits
and compensation are key to retaining employees. Even with a good
working environment, it will not be good enough if these seemingly
miniscule reasons are not met. Pay is the key and with a good
compensation package and benefits, employees will work hard for the
company.
Of course, without a good workflow and retention strategy, employees
can still leave the company even with good remuneration. A scenario
you would not want to see is that your company is spending the time
and money to train this employee for the next company that he/she
is joining. Worst of all, they might and would most probably join your
competitors, effectively meaning that you have trained up a competitor
to your own company.
So, all things considered, do you want to be a small fish in a big pond
or a big fish in a small pond?
Terrence Tham
Sales Director
One Solution Recruitment Pte. Ltd.
a big pond?
Ju l | Au g 2012
En t r E p r E n E u r s’ Di g E s t
37