Start-ups value staff input more than developed firms

Well-established companies are less likely to listen to employees’ views
than new businesses.

US research shows 73 per cent of HR professionals in start-ups report
managers having good communication with staff, but only 50 per cent of those in
established organisations believe superiors keep open communication.

The study by the Society for Human Resource Management also finds that 85
per cent of new firms give staff the opportunity to suggest business
improvements, while only 65 per cent of mature firms encourage staff input.

The survey of over 570 HR professionals shows companies with less than 100
staff tend to reward employees solely with base pay, whereas larger firms are
more likely to give profit-based bonuses.

Larger companies are likely to provide more extensive employee training
programmes than smaller firms, as well as offering training on a more formal

Debra Cohen, co-author of the study and director of research, said:
"Companies can learn a lot about their HR strategies by looking at the
practices of organisations of differing sizes and stages of development.

"Established organisations, for example, don’t appear to be as good at
listening to employee opinions as start-ups. On the other hand, employees may
have a greater chance to be promoted or move into a new position at a mature
company than within a young organisation."

The research also finds staff are more secure at larger companies, with 33
per cent of large firm respondents saying it is difficult to dismiss an
employee, compared with 17 per cent from small firms.

Half of large companies provide comprehensive severance packages to laid-off
staff, while only a third of small firms do the same.

By Ben Willmott

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