Here Is the One Good Thing About Corporate America

• Employees at small companies are more satisfied with their employer relative to large companies. In particular, employees at smaller companies have more positive sentiment around work-life balance.

• The one exception to the higher employee satisfaction at smaller companies is sentiment around diversity and inclusion. Employees at large companies rate their employers more highly with respect to diversity and inclusion.

• Large companies have almost four times more DEI personnel per employee compared to small companies, which provides more resources for minority employees in large companies.

Not all companies are alike, particularly in terms of size and culture. Working for a large corporation offers distinct advantages, including resources for professional growth, opportunities for career progression, and a broader talent pool for collaboration. Conversely, employment with a smaller company often entails more flexible working arrangements, fewer constraints, and flatter organizational structures, which can offset the limited resources. Ultimately, the question remains: where are employees happier?

Revelio Labs’ workforce data reveals a negative correlation between company size and employees’ overall sentiment ratings. On average, a one percentage point increase in company size is associated with a 0.1-percentage point decrease in sentiment.

Employees at small companies (those with less than 250 employees) tend to rate their organizations higher in work-life balance relative to large companies (those with more than 2000 employees). The fierce competition among workers in large companies may push employees to work longer hours, which negatively affects their work-life balance. Although employee sentiment ratings are generally higher at small companies, it is not the case for employees’ perception of diversity and inclusion. Employees’ ratings of diversity and inclusion are on average 2% lower in small companies compared to large companies.

Several factors could account for the observed differences in sentiment around diversity and inclusion, one being the availability of Diversity, Equity, and Inclusion (DEI) resources within the workplace. Large companies have almost four times the number of DEI personnel per employee compared to smaller counterparts. As we have previously shown, companies with dedicated DEI teams often exhibit greater representation of racially diverse hires. Furthermore, DEI teams offer increased opportunities for minority employees to assimilate and thrive within the organization.

However, DEI is in danger: We have previously shown that major tech companies have been downsizing their DEI teams since mid-2022. Having specialized DEI personnel is not only a resource for the company’s employees, but also helps companies attract diverse talent pools and commit to diverse hiring. As our research with the Washington Post highlights, corporate America may need to rethink its DEI teams.