There are so many things to consider when a person is thinking of changing jobs. Things like the new role, what will their manager be like, and the compensation & benefits. In all these situations, you want to have at least an equal (but preferably better) situation than you have today. This is especially true if you are gainfully employed and OK in your current role.
An aspect that is sometimes overlooked in the excitement of being offered a new position, is the financial stability of the company you may be joining. Unless you are currently unemployed, or soon to be, then the financial performance of the prospective organization should be a critical variable to whether you depart from where you currently are working.
The last thing any worker wants to do is enter a situation where they must worry about a layoff, or (even worse) fall victim to an employee downsizing. In this scenario, as a new hire, you will be one of the first to go and (to compound matters) receive the minimum offered severance.
So, how can you tell if the company you are interviewing with is in a good financial position.
• Study the Numbers and Beyond: If the company does need to publish financial information, then it will be available for your review, assuming you know what to look for. If the company is publicly traded, you will have the annual report(s) to study. Trending is important when looking at financial health, so you should pull several quarterly reports/years of reports. Look for the section where the company provides “guidance” regarding what they expect to see in the next year for a sneak preview of the future. Furthermore, look at the reported “risk factors” to determine if there are any potential “land mines” out there that someone should be concerned about.
• Research the Company: This is much easier if the company is a publicly traded company that is required to publish financial results for shareholders. You can also easily research a not-for-profit organization due to their reporting requirements. Unfortunately, most companies in WNY do not fall under either category and, therefore, require additional work by you. A general online search is a promising idea regardless of their ownership status. Check to see if the company has been in the news lately for positive reasons such as an expansion or new grant, or concerning signs such as a major leadership change or a layoff.
• Compare To Competitors: One way to determine the health of the prospective company is to compare it to others in the industry. Hopefully, what you will find is that the company is outperforming its competitors and maintaining or increasing its market share. This will also give you a better sense of how the industry is performing overall.
• Ask in the Interview: You should be granted time in the interview to ask questions of your own. Asking questions regarding the financial status of the company can serve several purposes for you. It can show that you have done your research, and you are motivated and interested in the job. It can also, of course, give you some of the information you are seeking regarding the financial status of the company. It is unlikely that the interviewer will share confidential financial information with you as a non-employee. You should expect, however, to receive general information regarding recent hiring plans, adding clients, etc.
• Network: Engaging former and current employees seems to be the answer often when it comes to supporting your job search. Networking can take some effort on your part, but can provide you with unfiltered inside information. While former employees may provide you with the most candid feedback, you will need to make sure that the feedback is still current and not based on an outdated financial position.
Unless you are currently unemployed and your desperation level has reached a point where you just need a job, a job seeker wants to place themselves in a desired position with a financially stable organization. While it is impossible to have a crystal ball that will accurately inform you what the future looks like, there are several things that you can do to make sure you are doing your due diligence. A little effort on the front end can save you a lot of stress and concern over your job security later.
As always, best of luck in your job search.
The following has been prepared for the general information of WNYJobs readers. It is not meant to provide advice with respect to any specific legal or policy matter and should not be acted upon without verification by the reader.
Joe Stein
WNY Human Resources Professional
Feel free to contact Joe Stein regarding questions or comments at:
Joe Stein
