Identifying the signs of a company falling do not require any expert skills. Here are the common signs of a company that is on its way to downfall!
The corporate world is highly unpredictable. One day if a business is flourishing, you cannot say if it will even exist in the market after six months or even a year. If you are working with a highly competitive company, it does not mean it will stay the same for all time to come!
Working in a failing company means you will be out searching for a new job very soon. Therefore, as soon as you begin to observe the signs that your employer is in trouble, you need to make a choice. You can either choose to drown with the company or escape when you have the time.
Thinking about identifying the signs if your employer is in serious trouble or not? Well, you do not have to be Sherlock Holmes to look for the signs. If you pay attention to the situation, the signs will begin to emerge, if there are any!
Cutting Back on Employee Benefits
One of the most obvious signs that a company is sinking and the employer is in trouble is that they begin to cut back on the employee benefits. The company will start by taking away the free facilities, which will be followed by reductions in the benefits. The appraisals that the employees so eagerly wait for will begin to reduce, and finally, there will be no more raises. The company will also start giving bonuses.
When your employer begins to cut back the benefits, it is a clear indication that they are sinking and there is no way out for them. In the majority of the cases, cutting back on employee benefits and perks is the last resort for the companies to stay afloat.
It is important that you look for the signs. The earlier you deduce that the company you are working for is sinking, the quicker you can save yourself from sinking with it.
Downsizing and No Recruitments
Another way employers deal with loss is downsizing. When companies initiate downsizing and begin to let go of the employees, it is a sign that the company is falling and the employer is in deep trouble. Downsizing brings a difficult and very stressful time for the employees. One day they are working in a company, the next day they are unemployed.
Thinking about how you can know that downsizing is underway in your company? When your company slows down or stops the recruitment process, know that downsizing is just a few weeks away. Observe the frequency at which your company is bringing in new employees. When you begin to observe a significant reduction in the frequency, it is an indication that a company does not have the money to hire new employees and retain older ones.
The Best Employees Start Resigning
If the company is recruiting at an average rate, and there are no reductions in the employee benefits, does not mean that the company is standing on firm ground. Top employees of a company have the experience and expertise to understand what a company is going through. When the best and the most experienced employees begin to resign, understand that the company is going through a recession period.
Sometimes, the signs are not too obvious such as downsizing or cutting back on benefits. You have to dig deeper to know where the company you are working in stands. The top employees do not tend to leave a company unless they have a better opportunity waiting for them or the company itself is drowning. If more than one of such employees talk about leaving the company, it is the time that you start your job search because if you delay it, you will fall with the employer.
Nasty Rumors and Closed-Door Meetings
When a company is at the verge of falling in failure, rumors tend to surround it. The people outside, especially the competitors, begin to talk about it. You must understand that the competitors of a company are aware of all the affairs, even more than the employees working there. When you begin to hear rumors about your employer or company, there is a more than 80% chance that these rumors are actually true.
Competitors observe every single step that your company will take and the moment they find out the weak spots, they attack. If you are meeting with people who work in the same industry as you and you hear them talk about how your company is in trouble, you must consider it.
Closed-door meetings begin to take place very frequently. The top management begins to meet in secretive ways, and it creates a cloud of tension in the company. When employees begin to question the employers and the top-management, they are met with vague answers and explanations.
Falling Cash Flow
Want to know one sure-fire way to know whether a company is failing or not? It is hemorrhaging cash flow. You need to understand that cash is the king in the corporate world. If there is no enough cash for a company to keep going, it is most certainly bound to fall.
You will know how a company is doing with cash when you go through their quarterly cash flow statement.
When you observe any of these signs in your company, know without doubts that your employer is in trouble and the business is falling. A smart approach is to start your job search when you observe the very first sign of downfall. Staying with a falling business will not do you any good! The earlier you understand, the better it is for your professional life!