Signs your Employer may be going out of Business
Sometimes employers permanently close their doors without any advance notice to workers. There are signs which indicate that your employer may be going out of business, so it's good to be tuned in to certain aspects of your work environment. Red flags that might be cause for concern can be subtle, but if you pay attention to any unusual changes or activity at your place of employment, it's possible to stay a step ahead of the game.Some indicators that your employer may be planning to go out of business might include:* Paychecks are DelayedOne of the first signals of potential problems is any sort of delay in paycheck processing. That's not to say that an isolated pay-delay incident should cause everyone to start scouring the want ads and emailing resumes. But if paycheck problems become a recurring theme, it might be time to think about a resume update.If a company is facing financial distress, sometimes paychecks are delayed because it does not have enough capital on hand to meet payroll needs.* Doors are ClosedWhen managers who rarely or never close their doors for meetings suddenly spend most of their time behind closed doors, this can be a cause for concern. It attests to the fact that something big is going on, something of a serious and confidential nature.* Inventory is DepletedIt's time to wonder about job security when important, key inventory is sold and not replaced. If this happens, ask when the new products will arrive to replace depleted inventories. If the answer is something like, "We're holding off on that right now," then be sure to update your resume within the next 24 hours.* In the NewsIf details about your employer's tenuous financial picture starts showing up in the local, regional or national news, it's probably time to intensify your job search.* Hours are Scaled BackIf an announcement is made that third shift is going to be eliminated, or staff hours are being cut back noticeably, this is not a good sign. Companies that start cutting shifts, trimming hours or eliminating staff are taking measures to shrink payroll and benefit expenses. This is a sign that there might be financial trouble brewing.* Loss of Customers or ClientsHearing through the overgrown work grapevine that your employer has lost one of its major accounts is a clue that there is probably a sharp revenue loss. On a different level, if you work at Burger Joint and a new MacBurger opens next door, this will most likely consume a slice of your customer pie.Logic dictates that when a business takes in less cash, cuts will be made over time. If those revenues are not made up elsewhere, this could eventually cause a business to permanently shut down.* WhisperingSometimes coworkers' whispers are just displays of ridicule and rudeness. Other times, they might point to something more ominous. When trouble looms on the workplace horizon, there is usually someone with access to sensitive information who leaks it to someone, who tells someone else, and so on.If you notice others congregating in remote corners, talking in hushed tones, try to find out what they're talking about. It could have a direct impact on your future, or it might just be idle gossip. Either way, it's best to be a well-informed employee.* Priorities are ShiftingIf a project that was imperative last month is being placed on the back burner today, this is a sign that something may be amiss. Either someone in a position of power just didn't like the concept, or there's a financial deficit behind the abrupt change.After you've studied the signs, if you suspect there's an impending closure around the corner, don't hesitate to follow your instincts. It's always best to be proactive in life-impacting situations. Bear in mind that if you start looking for a job today, it might take a couple of weeks to get an interview. After that, it might be another month before the prospective employer makes a decision.Let the signs guide you, but use caution, and don't let them drive you in the wrong direction prematurely. Try to avoid taking a job detour unless it becomes necessary, but if you do, steer yourself in the right direction with a more financially stable company.
