It’s hard to predict the exact timing of a layoff, but certain events indicate that you should start paying closer attention to the health of your organization and the security of your job:
- Changes in the economy
- Changes in industry
- Changes in an organization’s financial standing
- Changes in management
- Changes in behavior of managers, coworkers, and subordinates
- Changes in job responsibilities
- Changes in performance feedback
If the overall economy is stagnant or depressed, repercussions are felt throughout many industries. Public schools are impacted by state budget cuts. Hospitals face shrinking federal funds.
Nonprofit endowments decrease and, subsequently, so do their operating budgets. Consumers spend less, so retail stores have lower sales and lower revenues. Businesses have less money to spend on advertising, technology, consulting, and other business services. If the economy takes a hit, your employer likely takes a hit. If the economy suffers a deep blow, it might be enough to threaten your employer’s ability to maintain its workforce.
Sometimes specific industries are hit especially hard. Housing has undergone a recent contraction, so mortgage services, builders, housing-related equipment and supplies, and other real estate-related companies are struggling. If you hear that your employer’s competitors aren’t doing well or that your broader industry isn’t doing well, follow the news more closely. If an industry your employer serves isn’t doing well, that impacts you just as directly. For example, when car companies were having financial trouble, the advertising agencies that relied heavily on automotive company business also were hard hit.
The Occupational Outlook Handbook produced by the Bureau of Labor Statistics tracks hundreds of different jobs and gives estimates on future job prospects for that role.
You may be tempted to disregard your organization’s internal memos, newsletters, or even annual report, but it is a good idea to stay current with your organization’s health. Is it profitable? Does it have a diversified customer base—that is, a lot of different customers, so you are not relying on any one group?
Is your employer growing? Is the growth related to your job, or is it in a different geography or different functional area?
If your organization’s management changes, that is a sign to follow your work environment and prospects more closely. It is customary for a new executive team to want to bring in their own people. If you are new to your career and many levels below the executive team, this may not affect you now, but it’s something to remember as you advance upward in your career. In addition, if your immediate boss changes, the new boss may want to bring in his or her own team, and that does affect you, regardless of how junior you are.
Earlier in this chapter, we talked about keeping open communication, developing relationships, and getting feedback. You want to do this on a regular basis because changes in the behavior of your boss or colleagues (or team when you start managing others), as well as changes in your responsibilities or your performance feedback should be watched closely. You want to have time to turn things around if you discover people are not happy with your work. If you can’t ameliorate the situation where you are, you want to have time to look for your next opportunity and leave on your own terms.
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