News & Views: Looking for a Job in a Down Economy: How to Weigh Risk vs. Reward

With all the doom and gloom in the marketplace, you actually feel pretty lucky – your company is doing okay, you know your position is secure and you are highly regarded for your contributions.

Then why are you starting to get that restless feeling inside?  The one where your inner voice says “Ugh, another day of the same old thing.  I need to spread my wings and find a more challenging job.”

An economic downturn presents an extra challenging time for people who desire career change.  Whether you long to learn more, want to explore a new industry, or just increase your earning potential, it’s clear that it’s time for a change – but at what potential cost?  Are there really any good jobs available?  Is it worth risking a safe haven for something unknown during a recession?  Will you have job security at the new company? 

Without the help of a crystal ball, no one can answer these questions fully.  Is it possible to change jobs during a recession?  Yes.  Should you leave a position that is safe for one that gets your energy and enthusiasm flowing but whose security is less certain?  Maybe.  Are there ways to hedge your bet and make the decision that is right for you?  Absolutely.

While the job market has cooled considerably over the past few months, there are still good companies hiring.  The key to a successful job search today is to do a higher degree of due diligence to ensure that you are moving into a situation that will offer you the opportunities you seek, without trading off the security that you need.

There are a variety of tools and resources available to you to find potential jobs: online job boards, professional recruiters and, of course, your own personal network.  Once you find an opening that interests you, it’s time to dig deep and make sure the opportunity really is as good as it looks on the outside.  The following are excellent places to look after you have identified an opportunity:

Financial Research

Take a look at the overall financial health of the hiring company.  If they are publicly traded, websites like Hoovers, Yahoo! Finance and Bloomberg have much of the information you will need to investigate the company’s financials (such as recent sales and profit performance, stock performance, analysts’ reports and recommendations on the organization).  Look at historic information as well as their current standing and check out the industry as a whole.  If you have a financial advisor, ask him or her if they are familiar with the company, their executives and its financial well-being.

If the company is privately held, your task is more challenging.  Ask the people you interview with for information about the amount of funding they have, their burn rate, as well as their recent sales and revenue trends and if the company is growing. There should be some level of transparency and openness in sharing that information with you, especially if it’s good news.

Press

Query the same websites listed above, in addition to ones like The Boston Business Journal, Crain’s, Business Wire or Fast Company and any applicable industry trade publications and websites to research any stories or articles written about or by the company.  Also search for blogs that follow the company, industry, products or business lines and read applicable posts and comments. 

Social Networks

Tap into your social network and ask for input.  Valuable information will come from current or recent employees who can confidentially give you an insider’s view.  Search LinkedIn, ZoomInfo and Facebook for connections to companies that you didn’t know you had.  Reach out to these people and ask for their input and opinion.

Be careful who you speak with, however.  Online “reviews,” on sites such as Glassdoor and JobVent, tend to be more frequently visited by employees who have left their previous companies under less-than-ideal circumstances.  As with a personal review of anything, you should be discerning as to whose voice you are listening to.  It is best, in this case, to only listen to (or read) people to whom you are directly connected and trust.

Recent Hiring & Layoff History

Information on the company’s performance during the last recession (2000-2002), if it is available, will be very illuminating.  Some industries weather economic storms virtually untouched, while others are highly cyclical and can be severely affected.  Each recession is different and companies can be more or less vulnerable during one period versus another, but in many cases past performance is a good indicator of future performance.

Recessions come and go but solid, well-managed companies stay afloat and frequently emerge stronger and with increased market share.  These companies continue to hire for key positions and because of this, there is no reason to put your career into limbo during a downturn.  Be cautious, do your homework, make an informed decision and elevate your career in a down economy!