Navigating Corporate vs. Start-up Life

Human Resources has become a pivotal force in today's fast-evolving business landscape, influencing organisational culture, shaping talent strategies, and driving long-term growth. HR’s role has grown significantly in bridging organisational goals with employee needs. However, HR's path differs sharply between corporate giants and budding start-ups. Understanding these contrasting environments can illuminate the unique HR strategies that drive each.

Corporate entities and start-ups operate on fundamentally different premises. Established corporations often prioritise structure, stability, and long-term growth, cultivating a well-defined culture that supports retention and efficiency. In contrast, start-ups are lean and agile, often characterised by rapid decision-making, flexible work processes, and a culture that embraces risk. Each environment shapes how HR manages recruitment, talent development, technology, and culture, making the distinction between these settings essential for HR professionals navigating both landscapes.

To explore the distinction between these settings, we have collaborated with two HR leaders who bring hands-on experience in both environments. (include their pictures within the website)

• Paul Knight spent his early career in HR leadership roles for large corporates like Siemens, Serco and BBC, before joining Perform Group in 2013 (now Stats Perform, a world leader in sports AI & DAZN a leading Sports Streaming provider) and later leading the HR function for Perform as Chief People Officer between 2018-2020 before it’s sale to Vista.
• Mona Rahimian’s professional foundations were established with Vodafone before joining Zego (a fintech aimed at disrupting the insurance industry) as Director People Partnering. She transitioned back into a corporate environment joining Allianz Partners as Global HR Director.

Cultural and Structural Differences

The corporate world typically operates with a structured, process-oriented approach, cultivating stability to retain a large workforce. This framework nurtures consistency, predictable workflows, and procedural rigour, supporting employee longevity and satisfaction. Start-ups, however, foster a fast-paced, risk-tolerant culture that values adaptability and the willingness to innovate rapidly. In this environment, HR is crucial in maintaining flexibility while guiding the fledgling company toward sustainable growth.

As Paul explained, the BBC has specialists for all areas of HR and systems in place based on “best practice” models. Conversely, when he joined Perform Group, he took the approach of “banning” the wording of best practice and then focusing on what fit specifically with the challenges they were facing and creating an HR model that could freely adapt to the fast-changing environment he then faced.

However, as Mona suggests, this approach also challenges an HR leader's skill set and mindset. In a corporate environment, due to the incumbent processes, there is a default of action within those processes, and if it is not apparent where it fits, the default answer is always “no”. But in a start-up, the default is often “yes”, and that change can be challenging.

What matters, in my opinion, is the skillset of the HR leader. Not whether they come from the same industry or the same size company. It’s about whether they have the curiosity to go under the hood and understand how the business operates.

Recruitment and Talent Management Approaches

Hiring is often a swift, dynamic process for start-ups to meet immediate needs and assemble a versatile team that aligns with the company’s evolving culture. The emphasis here is on agility and adaptability, as the team is tasked with building the company from the ground up. Conversely, corporations implement structured recruitment processes with a long-term vision, carefully assessing candidates based on specific competencies and strategic fit. These organisations often rely on comprehensive talent management frameworks, allowing them to shape a workforce aligned with broader company goals.

The challenge with recruitment in a start-up is hiring someone for the job that is on hand today but also for what it may evolve to, which is yet to be discovered. For this, transparency is critical, as Paul reflects on;

We were also more honest about the good and the bad things. It’s about balancing expectations.

These approaches reflect the need for agility and adaptability, with HR professionals hiring for not only current skills but also future growth.

HR Technology and Tools

In start-ups, lean operations mean that HR teams use essential, growth-supporting tools, often leveraging scalable technology to meet immediate needs or open-sourced tools (Perform used Skype to communicate internationally). Established companies with more significant resources invest in robust HR systems that can manage the complexities of a large workforce, supporting payroll, compliance, and talent management across multiple regions and functions.

Paul’s experience transitioning into a start-up environment underlines these constraints:

When we first came in, we had very little to work with due to the rapid growth and acquisitions... couldn’t even find email addresses for everyone for our first engagement survey.

This budget-conscious, practical approach exemplifies the start-up emphasis on solutions that yield immediate value over sophistication. However, in the longer term, such an approach can get in the way of growth and engagement with the organisation.

Training and Development Strategies

Training in start-ups is often more experiential, with on-the-job learning integral to employee growth. While training programs may emerge as the company scales, the early focus is adaptability and practical knowledge. In contrast, established corporations offer structured training pathways, often with formalised programs in leadership, professional development, and role-specific skills. These training initiatives support skill enhancement and long-term career growth, reinforcing employee retention and satisfaction.

In the start-up environment, the lack of (or limited) structured training can be seen as no development taking place, even though people are often learning more as they have broader exposure and experiences then you might get in a larger corporate organisation. This can be positive or negative, especially for younger employees.

They got a range of experience in our start-up, and then they’d go to bigger companies for more specialised roles. This is great for them but then equally left us with the challenge of retention, so we had to keep it in mind when attracting that younger generation and ensuring we were constantly aware of additional talent to bring into the organisation as that turnover occurred.

With development comes an approach to feedback that may be different in a start-up.The leaders in start-ups need to have a deep, clear view of all the existing talent as much as possible. A robust talent review is essential and even more so when that set-up is being established. In support of this, Mona suggested reading and taking examples from Kim Scott’s book Radical Candor. This book is based on the approach of a management philosophy that focuses on growth trajectory (instead of classic potential paradigm).

I wanted the management at Zego to have a clear map of the talent – who to promote, who is trailblazing etc – and I find the classic talent reviews quite limiting in that they say someone either has the potential or not. Kim Scott’s model opened the doors of developmental talent review discussions with both employees and managers. You may want to choose another model. Whatever you choose, it should match the culture of the company. But take it seriously.

Training in start-ups is designed to nurture versatile skillsets, balancing capability, and willingness to be stretched.

With this in mind, Mona’s view is that, “the strategy and the team structure keep evolving rapidly. You must be very close to the heartbeat of the business, what is changing, what is working or not working, where we need to push, pull, stabilise and at the same time, very close to the people, their ambition and their skillset and match the two.”

HR in Mid-Cap Companies

While we have discussed start-ups and corporate organisations, we would be mindful to touch on mid-cap companies. Mid-cap companies blend start-up agility and corporate structure, delivering another unique opportunity for HR professionals. They often have the capacity and resources to implement structured HR processes, much like a larger established corporate organisation, but maintain the flexibility to pivot and adapt quickly, akin to start-ups. This hybrid model allows for tailored recruitment and development strategies that balance immediate needs with future growth potential. In these organisations, HR leaders can focus on creating adaptable frameworks that support varied employee experiences. They leverage scalable tech solutions like start-ups but can invest more in sophisticated HR systems, echoing corporate approaches.

Making the Move

For HR professionals, making the leap to a start-up offers an opportunity to shape company culture from the ground floor, work with greater autonomy, and experience the immediacy of their impact. Start-ups demand adaptability and a “roll-up-your-sleeves” mindset, ideal for those seeking to influence growth in a fast-paced, innovative environment directly.

Mona pointed out four areas she felt was important to keep in mind before making the change to a start-up:

1. Understand how the business makes money. This is important as it will underline all the decisions that are made to create the team that will support generating that revenue.
2. Understand the speed of change that’s required. Having a connection with the founder about their strategy means you are joining the organisation with an open mind of how much change will be required and how quickly so that you’re not blindsided as plans progress.
3. Understand the tone and culture. Even if still under development, it will set the environment you are joining and ultimately come from the founder so you need to be aligned here.
4. Be open-minded. It is bidirectional. Both worlds are great, and one can get the best out of each and move from big corporations to scale-ups and vice versa.

You see the impact of your work and how the culture evolves quickly in scale-ups. It can be a new people solution, such as a talent review or the coaching you give in the flow of daily work. You must be uber practical. Start-ups also require high degree of transparency. Ask Me Anything sessions are frequent. Be prepared to allow yourself to be challenged. I found it refreshing that the people are much clearer on what they do and don’t appreciate.

Yet, returning to corporate can be equally rewarding for those who crave the depth of structured support, broader resources, and a role within an established brand. The corporate environment often provides career stability, well-defined career paths, and the opportunity to work on larger-scale HR initiatives. Mona explains that while start-ups test the flexibility and adaptability of HR professionals, corporate roles offer the chance to hone specialised skills and work within a global framework that supports long-term growth and structured innovation. Each path brings unique advantages, allowing HR professionals to find a career stage aligning with their goals and desired impact.

Conclusion

HR professionals play crucial, distinct roles across corporate, start-up, and mid-cap environments. While start-ups offer a flexible approach for rapid scaling, and corporates provide structured support for sustained growth, mid-cap companies blend these elements to their advantage—they harness the agility of start-ups with added stability and resources, making them a rich training ground for HR expertise. For HR professionals navigating these environments, understanding their unique demands, strategies, and technologies offers a strategic edge.