Getting your player ready...
Just as investors are scrutinizing the finances of companies before buying stocks, job seekers may also be forced to look at potential employers more closely.
The extra scrutiny could slow the employment search but job seekers – and many employed workers – might want to take steps to avoid the fate of employees whose companies went under, who lost both jobs and retirement savings when their companies unraveled.
Employer credibility is likely to be a crucial asset in attracting and retaining talented workers as companies position themselves for growth in a recovering economy.
Many workers are taking a closer look at their employers and potential employers to determine if they are next. For job seekers, investigating a company’s credibility can be a difficult task. Asking questions in early-round interviews could be perceived as inappropriate or otherwise place the interviewer in an uncomfortable position, ending the process.
However, the dilemma facing job seekers could be turned to an advantage by proactive companies that are willing to alter their hiring process and take measures to establish credibility promptly with job candidates.
Building a solid reputation with job seekers would have long-lasting benefits, particularly when the economy resumes running on all cylinders and it becomes more competitive to find the most qualified workers.
Even if companies do take the initiative in establishing credibility, job seekers and workers would be well advised to examine more closely the operations and policies companies maintain in order to avoid future Enrons.
Before being hired
Look for news of regulatory inquiries or investigations and ask interviewer what they are all about.
Check the financial news and other sources to learn if any analysts or outside parties called into question the company’s operating and/or accounting procedures.
Examine quarterly reports to investors. One sign that there may be trouble is if the accounting firm that reviews the company’s financial data changes frequently. Another clue is if earnings remain steady, but cash flow decreases significantly.
After becoming employed
Make sure your 401(k) retirement savings plan is diversified – do not invest more than 4 percent of your 401(k) in your company stock.
Watch to see if the chief executive officer and other top-level executives suddenly begin selling large shares of their own company stock. Such insider transactions by top management are routinely reported in The Wall Street Journal and are available from the Securities & Exchange Commission.
If you survive a round of layoffs, draw up a financial plan for you and your family as if you had not survived. More cuts could follow and it is better to be financially prepared going into a jobless situation.
Have an independent financial advisor, not an employer-paid advisor, review your investment portfolio.
If become unemployed (from tainted firm)
Try to get the interview without a resumé. Get in the door using network of contacts. Have a copy of your resumé for the interview, but hold onto it until requested: do not give employers reason to screen you out.
Throughout the job search process, but especially in the interview, do not try to hide the fact that you worked for a particular company with a poor reputation. Most hiring authorities understand that most employees are far removed from the level where wrongdoing is most likely to originate.
While it is important that you not hide the identity of your former employer, you may want to de-emphasize the connection to your former employer by focusing solely on your attributes in terms of your position.
