Photo: nadavshoval / statigr.am
Giant companies like Google and Goldman Sachs get a lot of attention for their killer perks and elite status culture for workers. But if you’re focused on moving your way up the income ladder quickly, a smaller company is the best choice right now.
This could have a lot to do with small companies being able to adapt more efficiently during economic shifts or a decline in the economy compared to larger organisations.
According to an index released today by Payscale, wages at small companies are growing a lot faster than those at medium-sized or large companies.
“While the headlines oftentimes go to the large-sized companies, the PayScale Index for the second consecutive quarter showed wage growth for small companies outpacing medium and large companies,” Katie Bardaro, lead economist at PayScale, said in the report.
In the last quarter of 2012, wages for small companies grew by 2.2 per cent compared to only 1 per cent in medium-sized and 0.9 per cent for large companies.
Since the fourth quarter in 2011, wages in these small companies increased by 4.9 per cent compared to 2.7 per cent at medium-sized companies and 3.3 per cent at large firms.
“This strong performance pushed small company wage growth since 2006 above medium company wage growth and brought it within spitting distance of large company wage growth,” the report said.
Small companies are defined as those with less than 100 employees, whereas medium companies have between 100 and 1,500 workers and large firms consist of more than 1,500 employees.
The graph below shows the wage growth between small, medium and large companies:
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