Large vs Small Businesses: Which Is Better For Your Mental Health?
Danielle Meakin - 6 Comments - 29 Sep 2019

Many of us — an estimated 10 million in Britain — work in medium-to-large sized organisations. Companies which employ between 250 and 1,000 staff. But the most common source of employment remains small businesses. And very small businesses at that: about 13 million Brits earn their living in organisations with workforces that average around just five people.

Obviously, as anyone who has made the jump from small to large business (or vice versa) can tell you, life can be very different at these two ends of the employment spectrum. But which is better for employee wellbeing and mental health? As it stands, far more research has been compiled on the functions of large businesses, the government’s own civil servants, in particular. But with investigations of small businesses finally catching up, a picture is beginning to emerge that might reveal a definite answer.


The power of trust

Large organisations, which often have more money to invest, often provide valuable training and avenues for their employees’ development and progression. Yet at the same time, employees tend to be suspicious of larger companies and trust them less. This may be down to two reasons: one is a simple matter of size and communication. That it is difficult to always communicate clearly to larger bodies of teams. The second is that larger corporations can be more ‘political’, with their being inevitable winners and losers divided along these political lines.

To contrast this with smaller business or self-employed workers, there are much higher levels of trust, job satisfaction and job involvement. But there are also higher levels of conflict between the spheres of home and work. In the initial advantages of flexible home working and more autonomy, there are also jarring gender differences. With women tending to be more than likely the ones with the highest home/work conflict.

While it is true that more autonomy and control over one’s work can help to reduce stress levels. The problem is that small business-based workers report having so much more of it. And with these heavier workloads comes — paradoxically — raised cortisol (stress) levels. Small business-based workers have also reported increased loneliness and isolation than their larger-organisational counterparts.


Company Culture



The power of performance

As larger organisations struggle to communicate with their employees. It should not be surprising that they also struggle to recognise the individual contributions of their hardest workers. The resulting effect is that people often feel like they are nothing more than invisible cogs in a huge machine. Efforts to identify hard work, such as performance management systems and KPIs, are only understood to have short term benefits. In the long run, asymmetric salaries, bonuses, and promotions, only serve to punish and demoralize workers who feel they’ve been left behind.

Competitive cultures can make the workplace an unpleasant environment, and drive out pro-social behaviour. And if the competition is valued above learning and development this can lead to what is known as ‘knowledge hoarding’. Where team members guard the secrets to their success to ward off rivals.

Mastery Climates

Small businesses, on the other hand, tend to lean toward so-called ‘mastery climates’, which are the opposite of knowledge hoarding ones. Here people are encouraged to emphasise learning and collaborations with co-workers. Yet that doesn’t mean mastery climates are only available to small businesses. On the contrary, such a climate can be replicated by local managers able to implement model knowledge sharing behaviours by putting a great degree of trust in the employees. In large organisations, positive organisation and support can go a great deal to overcome the conflict that can come about in hierarchies.


The power of ‘job crafting’

It seems that there are not a lot of opportunities to determine what and how the work is done in larger, hierarchical businesses. The result is that work is often fragmented into smaller pieces for employees to work on. Who then fail to realise the bigger picture and the true meaning of the work carried out.

‘Job crafting’ has been shown to be effective in helping to not only retain staff. But also in engaging them and enhancing their happiness levels. Crafting in itself does nothing to reduce the demands of the job, but it does force employees to think about the resources they have and to engage and use them more effectively. This type of crafting is more familiar with smaller businesses (though it isn’t a guarantee), but there is no reason why it couldn’t be implemented into larger businesses under local managers as well.

Job crafting also encourages greater co-operation and dialogue between employees. And can help to unravel a toxic work atmosphere and reduce feelings of isolation in smaller businesses.


Some thoughts and reflections

There are advantages and disadvantages to working in both large organisations and smaller businesses. It is too simplistic and unfair to say that working in large hierarchical businesses is bad for employees within them. After all, working freelance, or for small companies can also be depleting and bad for mental health. What is crucial to good mental health, is that all employees recognise or find meaning in what they do. After all, work plays a hugely important role in our personal identity and wellbeing. So does making sure that we are paid well, and fairly, for the tasks at hand.

What is equally important is that, whether one is working for a large or small business, there are positive organisational supports in place. Support in the way jobs are designed, and executed; preferably by good local leaders. The use of fairer ways to track performance management is also very important. Especially if it is to lead to the development of a ‘mastery climate’.


This article was written by Neil Wright of Re-Space, an office refurbishment and fit-out company located in Kent, UK. 

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Neil Wright

This article was written by Neil Wright of Webster Wheelchairs, one of the NHS’s leading suppliers of wheelchairs, rollators, and other elderly and disability-friendly eq

What is Talent Mobility?.
Danielle Meakin - 6 Comments - 29 Sep 2019

If you haven’t already come across this subject, then prepare yourself for a new recruitment phrase to enter day to day language of recruiters. Talent mobility, is I predict, about to become a new buzzword with talent retention and HR types.

So what is it and how can an employer use it to its best effect.

With the advent of talent management technology, it is becoming increasingly possible to use Talent Mobility as a way to track and therefore identify candidates from within the existing workplace to fill roles with higher levels of responsibility, more efficiently and faster than ever before.

The ability to monitor the talent within their own workforce now allows employers to benefit fully from the talent readily available within their own staff base, this can be used to identify employees that need to be and should be promoted to higher levels of responsibility.

This is a good thing for the company, as it avoids the need to recruit outside talent to fill the role, and is even better news for a worker, as generally an increased level of responsibility within the new role would come with more recognition, more benefits and higher pay.


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Talent mobility is one of those new and not yet popular areas of recruitment within our industry however it is a key topic that should be given more consideration as we move forward into a more technologically advanced future.

Recent studies have shown that 30% or more of all employees in the workforce actively request their company does more to develop them within their workplace, however, studies also show that these same employees do not always have a high level of confidence in their employers’ available development programs. This is an area that professional and forward thinking organisations are going to have to address in the very near future if they wish to benefit from and have an impact on talent mobility.

With the rise of management tools given by a technological revolution within our industry talent mobility will increasingly be used as a monitoring tool.

Employers will in the near future be able to collect data in order to give them a clearer view of the skills and expertise available to them within their own workforce, specific talent mobility software will shortly be an incredibly powerful tool in the search for candidates to fill roles within their current workforce.

Talent mobility will allow employers and employees to design a career path which is almost bespoke for both parties and importantly for the benefit of both parties. The net result will ultimately be more job satisfaction for the employee and crucially higher productivity for the employer, this is a win win situation brought about and finely tuned by the invention and creation of more and more sophisticated targeted software.

A clear example of an individual benefiting from talent mobility software would be the individual who has a desire to move to a more senior position. The technology can show and identify any key missing skills that would be required before the promotion could take place and this would be a priceless tool for the individual and from the employers point of you it would mean that their worker would accept the missing elements and strive to improve themselves for both parties benefit, once again this is a win-win situation.

Any company that does not take full advantage of the available technological advances taking place in and around the recruitment industry should be aware that they could fall behind in their recruitment practices and lose immeasurable benefit that is waiting for them right there in their own ranks.


About the author


Mike Molloy, is an experienced freelance professional writer & Author

He regularly writes blog content for Smart Recruit on a variety of topics including Recruitment and HR related subjects.




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Mike Molloy

Mike Molloy, is an experienced freelance professional writer & Author He regularly writes blog content for Smart Recruit on a variety of topics including Recruitment and HR related subjects.

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