Deciding on whether to work in a private establishment or a public establishment can be rather difficult sometimes. Some people who work in public establishments say it is the best place to work in while some others who work in private establishments swear their jobs are better. Despite positive feedback from both the private and public sector employees, some groups of employees totally hate their establishments altogether.
In this article, we would be exploring the similarities, differences, pros and cons of both establishments to determine which of the two is the overall best.
Before we proceed further it is important to know that not all public companies belong to the government. To shed more light on this, we would be defining both terms. According to the dictionary, a public company is one whose shares are traded freely on a stock exchange. In clearer terms, a public company is a company whose ownership is based on stocks which are intended to be freely traded on a stock exchange. A private company, on the other hand, is a company whose shares are not on the stock exchange. In this regard, how do these companies differ?
In private companies, there are fewer policies and the hierarchy of administration and management are few. For public companies, it is the direct opposite and there are more policies. The hierarchy of administration is also usually more.
Public companies are also larger and there are more offices and departments unlike in private companies. In a public company, there is room for personal development and career advancement. Private companies also give room for personal development but you might be paying for it out of your pocket depending on the company. In public companies, career advancement is almost always sponsored by the company because it is usually linked with promotion.
There are many other differences but the pros and cons of each company should also be considered.
One of the biggest pros of working in a public company is job stability. As a public employee, your job is almost always guaranteed because you do not have to worry about your company folding up. If there is even going to be a shake off at all, you are most likely to be moved to another department instead of you losing your job. Asides job stability, there are also some benefits attached to public corporations — the most common of which are healthcare plans and juicy retirement plans. If you’re a big fan of holidays, you’d like public corporations because there are numerous holidays and work leaves too. Jobs in public corporations can also be extremely flexible.
If your salary is the top priority, you might want to take your sights off public corporations. One con of public corporations is their low salary growth. When adjusted to the increasing costs of living, the salary of public corporation workers might be dwarfed by the public employees’ expenses. Another con of working in a public corporation is bureaucracy. In a large organisation like a public organisation, the level of the hierarchy is long and before a worker’s need might be met, it would have to go through a lot of formalities. At times, one’s letter might be forgotten under a pile of files heaped on the desks of a superior. Sometimes, workers in the public sector are not paid as well as their counterparts in the private sector.
One big advantage of the private sector is it is hefty. Once you find a well to do corporation, you would earn better than many of your colleagues in the public sector. It is also easier to make your way up the hierarchy. In the private sector, the hierarchy is usually shorter and in time, you could find yourself at the top of the ladder.
Private companies might have the big bucks but there is a high instability risk attached to it. As a private employee, if the establishment shuts down, that is most likely the end. Private companies are also not safe because the competition is always encouraged and if you can’t keep up with the company’s expectations, it’s bye-bye. There are also more people than you can imagine waiting in line to get that same job as yours. Competition is inevitable in the private industry and any slip could mean the end of your job.
In conclusion, both types of establishment come with the good and bad. To some people, the public sector is preferable. To others, the private sector is more lucrative hence the better option. Both are good but we must come to a compromise none withstanding. In our verdict, the public sector is better because of its job security and added benefits.
