5 Signs Your Company is in Trouble

Posted by in Career Advice


If you've ever worked for a company that was going bankrupt, then I'm sure you know how hard things can get. They say that the captain should always go down with the ship, but when you're an employee, there's no shame in jumping ship early. Besides, going down with the company will only give you headaches, and you'll run the risk of being owed compensation that you'll never get.
 
The key is to be able to recognize when your company is in trouble and get out before things get really bad. Of course, if you ask your boss, they'll tell you that nothing is wrong and maybe that the company is having trouble, but nothing worth worrying about. Don't take the boss's word for it. If the company was sinking, telling the employees risks creating a panic, not to mention mass exodus.
 
According to USNews, there are 5 signs you can look for If you're wondering if the company you work for is sinking:
 
The bills aren't paid. If the electricity or the phone service is cut off at your office, even if it's only for an hour or so, it's a huge warning sign that there is trouble. At first, this one sounds over the top, but I've worked at an office where this actually happened. The electricity was turned off and the company president spent hours on the phone discussing payment arrangements. Also, if you work with other companies, like contractors, an art service or other service, and they tell you that their invoices aren't being paid or that your company still owes for past work, this is a reason to worry.
 
You get paid late. If you're an employee, your company will do whatever it can to be sure to make their payroll. This means that they will pay their other bills late if they have to. So, if your paycheck is frequently late, then you can assume that they're having financial trouble.
 
There's a hiring freeze. When companies are in financial distress, they will stop hiring new people. If jobs are being left unfilled or the company announces a hiring freeze, it means that they are trying to save some cash in the short term. It could be a sign that they are planning to restructure or it could be a sign of bigger problems.
 
You see high turnover. If high level executives are quitting or retiring at a rapid pace or you begin to notice that there are fewer and fewer employees in your office, it's a good sign that things are getting bad. When executives begin to think that the company is going under, they will look for new opportunities or go ahead and retire. When things are going great, this doesn't happen as often.
 
Work moves frantically, with unclear directions. If the company keeps changing their policy or frantically tries new promotions, it's a clear sign that they are grasping at straws to keep the company running. Of course, this could simply be a result of trying out new ideas, but if it seems to happen frequently, your company might be in trouble.
 
Have you ever worked for a company that was sinking? What was your experience? Please share your thoughts in the comments.
 
Image courtesy of koratmember / freedigitalphots.net
 
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