We all know how these turbulent times can be for job seekers. With the current state of the economy and an uncertain future, finding a reliable source of income is more important than ever. But instead of panicking, it’s important to remember that there is still an opportunity to seek out your dream job. Finding the right company with stability and growth potential should be a high priority — remember, you have options! To make it easier on yourself, we put together a list of things to look for in a company during these unpredictable times so you can rest easy knowing that you made the best decision possible.
1. Stability – Look for companies that have been in business for a long time and have a good financial standing
A company’s financial stability is paramount during turbulent times, so when looking for your next job, it’s important to do your research. Companies that have been around for a while and have demonstrated a good track record can provide valuable stability in the face of external factors. Check out the company’s financial statements and look at their revenue over time; this will give your insight into what kind of business decisions they make ahead of potential market changes. Stability is the five pillars of finance – cash flow, profit and loss statements, liquidity ratios, debt management, and budgeting.
Cash flow is the first pillar; it reflects how well the business is managing its money and can be used to measure its financial health. A positive cash flow indicates that a company has enough liquidity to cover operational expenses and will not become insolvent in the near future. It’s important to look at the flow of funds between accounts, as well as any changes in cash inflows and outflows over time. Check out this article as it explains how to calculate a company’s cash flow.
Profit and loss statements provide insight into a company’s profitability by showing how much it earned or lost during a specific period. Analysing these statements helps identify areas of improvement or areas where costs can be reduced to increase profits. Usually, a continuing trend of increasing net income indicates that a company is stabilising financially. For more information on how to find profit and loss statements check out this article.
Liquidity ratios measure a company’s ability to pay its short-term debts with its current assets. Specifically, the current ratio shows whether or not a business has enough liquid assets (cash, accounts receivable) relative to short-term liabilities so that it can pay them off without having to sell off valuable long-term assets like factory equipment. A higher current ratio indicates better liquidity and more stability for the business.
Debt management – companies should have an effective debt management system in place so they can pay their creditors on time and avoid bad debt situations where they are unable to fulfil their obligations due to financial distress. Companies should use debt only when necessary and maintain reasonable ratios between secured debts (like loans) and unsecured debts (like bonds).
Finally, budgeting is key — companies need accurate forecasts about their sales performance to plan effectively for any potential changes in market conditions. An effective budget should include cash flow projections, sales forecasts, expense estimations, cost control measures, as well as risk management strategies based on predictions about economic trends. All of this information can help businesses stay afloat during difficult economic periods by allowing them to adjust their spending accordingly while still leaving room for growth opportunities if conditions improve suddenly.
2. Leadership – Make sure the company has a strong leader who can make sound decisions during difficult times
It is especially important to pay close attention to the leadership of a company. A strong leader with an even steadier hand can make sound decisions during turbulent market conditions and help the business through difficult periods. It is essential to verify the leadership skills of any company you plan on considering for a job. Make sure that they have someone at the helm who has strong leadership qualities and demonstrate a willingness to take risks when it is beneficial. A job seeker can do this by conducting research into the company’s mission, vision and values. They should look for information about the company management team to get an understanding of who is in charge and how their decisions affect the overall success of the business. Additionally, job seekers should view a potential employer’s portfolio and review financial documents such as cash flow reports, profit and loss statements, liquidity ratios and budgeting plans to assess their stability. Finally, they can read reviews from past employees or contact current employees directly to gain insight into what kind of leadership qualities are present within that organisation. Effective leadership can make all the difference when times are tough and will help keep stability where it’s needed in an ever-changing landscape.
3. Vision – The company should have a clear vision for the future and be able to articulate it
Having a clear vision is of the utmost importance for companies. Vision provides a long-term direction and serves as a critical point of guidance. It can unify employees, customers & partners in pursuit of the same objectives. Vision also enables leadership to make decisions that align with the company’s values & goals and promote thought-provoking conversations about different approaches to achieving those aims.
Keep these three things in mind when looking for a stable and thriving company during turbulent times and you’ll be sure to find an organisation that can provide you with the security and opportunities you need to thrive. Check out our live jobs to see what roles are available today!
