Keyed up: To bots and people, keywords matter on resumes
Researching a company’s stability is important before accepting a new job. But identifying warning signs of a company’s instability is also crucial. It’s important to look at the overall picture rather than a single factor when assessing a company’s stability. It might be a cause for concern if multiple warning signs are present. If you’re considering joining a company, it’s also wise to ask direct questions during the interview process about the company’s health and future.
Here are some key indicators that a company might not be stable:
Frequent leadership changes: Regular turnover at the executive level can be a sign of internal turmoil or lack of direction.
Layoffs or hiring freezes: Frequent layoffs or an extended hiring freeze can indicate financial distress or a shrinking market presence.
Poor financial results: Consistently poor financial performance, such as declining sales, profits or market share, is a red flag. Public companies’ financial health can often be assessed through quarterly and annual reports.
Negative workplace culture: High employee turnover, low morale, lack of transparency from management and poor communication are often symptoms of deeper organizational problems.
Unrealistic business goals: Goals that seem overly ambitious or lack a clear path to achievement may indicate a lack of realistic strategic planning.
Delayed payments: Regular delays in paying suppliers or receiving late paychecks can signal cash flow problems.
Cutbacks in employee benefits: Reduction in benefits, perks or support resources for employees can be a costcutting measure in response to financial pressure.
Lack of investment: Insufficient investment in critical areas like technology, staff development or product innovation can indicate a company needs help to allocate resources effectively.
Industry decline: If the company’s industry is fading, be cautious about the company’s long-term stability.
Rumors and news reports: While not always accurate, persistent rumors or negative news reports about a company’s challenges can sometimes be based on truth. Don’t believe everything you read or hear but at the very least, see if you can find verification of both bad and good news.
Bad credit: For publicly traded or larger companies, a poor credit rating by agencies like Moody’s or Standard & Poor’s can be a warning sign.
Legal or regulatory issues: Ongoing legal battles or regulatory compliance issues can drain a company’s resources and distract from its core business.
Inconsistent quality: Declining quality in products or services might indicate cost-cutting measures or a need for more investment in quality assurance.
Sudden strategy shifts: Frequent, abrupt changes in business strategy without clear justification can signal leadership instability or lack of clear vision.