If small firms discover workers abilities quicker than large firms, does it make sense for people with high abilities to go to small firms?
Small firms can discover the ability of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. I am trying to determine if highly talented people should go work for small firms and if so the reasons why or why not.
There are reasons for and against going to a small firm if you are a person of high ability.
On the plus side, your abilities are much more likely to get noticed in a small firm. You will not just be one of many people. Since there are so many fewer people, your bosses will be much more likely to recognize your ability. This will lead to more rapid advancement.
On the negative side, though, you may not get much scope to use your abilities. Since the firm is small, it may not be involved in anything that is very complicated. Your talents may be wasted in such a firm. In addition, there may not be as much money in the small firm. When combined, these two factors mean that (although you may get to the top more quickly) you may find that the small firm is not as rewarding either in monetary terms or in terms of offering you a challenge that is commensurate with your skills.