Why fresh grads flock to startups and what corporates can learn about attracting talent

This week in Tech in Asia Jobs shares insights into how successful companies operate, hire, and more.

Photo credit: Pixabay.

A little over 10 years ago, I had completed HSBC’s five-month management training program (MTP) in Manila and I was getting ready to join the Group Graduate Development Program (GGDP) in Bricketwood, England. GGDP was a roughly two-month program where the bank’s management trainees from all over the world could meet each other and take various modules in finance and management development. That MTP on steroids turned out to be one of the most interesting and rewarding experiences of my life being the only Filipino in my batch composed of 92 trainees from 26 different countries.

In another corner of the world, the iPhone had just been released, setting the stage for a tech revolution of massive proportions. In just a decade, the world has completely changed. The ubiquity of the iPhone and other smart gadgets has produced a generation of tech-savvy business founders who are looking to play an active part in creating the future rather than waiting for their turn to lead in the corporate jungle.

Tech startups continue to proliferate by the day as more and more talented young graduates decide to shun glamorous, high-paying corporate gigs and be their own bosses instead. But that’s only half of the story. Many more talented individuals still choose to be employees, but in startups and not in large corporations.

Startups as the new MTPs

So, why are startups quickly becoming the new MTPs? I listed some of the top reasons below. The first two are upgrades to perks offered by a traditional MTP, while the last three are startup constructs that pull many young individuals away from the corporate dream, which may have already been a concept in the past generation.

1. Generalist job

Most startup jobs are actually quite similar to MTPs in the sense that they are generalist jobs. This is perfect for fresh graduates who still have a shallow understanding of the business world and an uncertain career path. Most of them prefer breadth of knowledge to depth of knowledge.

In MTPs, there is a rotation of roles where you are assigned relevant tasks to get a better understanding of various jobs. In startups, you are normally hired for a specific role. However, and especially for early-stage startups, the scope of work often changes, as teams are small and the business evolves rapidly. In the process, startup employees also have the chance to build an extensive range of skills.

Most startup employees also play a part in the decision-making process or at least hear about company updates firsthand from the decision makers. This allows them to have a greater affinity to the company’s mission and motivates them to help the company achieve its goals.

2. Instant promotion

MTPs allow you to leapfrog a few layers in the corporate hierarchy. Most management trainees take on officer positions immediately, managing employees who are a few years or even up to a decade their senior.

In early-stage startups, there will rarely be other employees to manage. However, a small team of between five and 20 people allow for fancy job titles such as head of business development or director of communications. To be fair, startup roles really do bring greater responsibility because startups need their employees to have a lot of initiative and think like business owners.

In contrast, multinational companies need most of their employees to be cogs in a large machine so there is more value in following established processes. The added benefit of startups is that you get to work closely with the actual business owners, who are normally inspirational visionaries.

Idea generation vs idea execution