Spotting if Your Company is in Trouble

Jean Tobin Zawlocki wrote HELP! My Company's Going out of Business, What do I do now? (Authorhouse) She says she wrote the book after losing a job for the second time. "I decided to share reactions of what other people have done when they’ve been in a worst case employment scenario." Jean shared some other thoughts with Women For Hire.

I’ve worked at some great companies and a few of them provided information that helped me become more knowledgeable about how businesses work. I wrote this book to give warning signs about when a company is in danger of going bankrupt. At two of my former employers, we had a sense they were insolvent. Having had these experiences, I believed it’s important to share the information to others. These days, employees should be prepared.

If you’re worried that your employer is going out of business, there are a few warning signs that you should look for.

Let’s say you work for a training company and presentations are very important to the business. You begin to notice that there are no supplies or significantly reduced supplies to do your job effectively. That may mean the employer is low on funds and is holding off as long as possible purchasing supplies. Another sign might be that your employer’s checks are no longer being accepted by vendors and that supplies must be paid for in cash on delivery.

Be aware of changes in the moods of senior managers, especially if rumors are swirling and they aren’t talking to employees about their concerns. Rumors may have an element of truth. What does your gut tell you? Pay attention, if you have an immediate reaction that something doesn’t sound right, believe your gut. It’s the second brain.

The biggest assumption that any employees can make is assuming they’re fully covered under health insurance or unemployment insurance. Make sure that your company is up to date with health insurance and unemployment insurance payments? Don’t be complacent. Be prepared. Always have an updated resume, a list of co-workers phone numbers and alternative medical insurance carriers if you can’t afford COBRA payments if you’re suddenly laid off.