How to find out if a company is financially stable?

[6packofun]

Dh is finally getting some calls and, hopefully, some interviews. Got a few irons in the fire, which is so different from just 6 months ago.

 

My question is about researching the companies that may be offering dh a position. How can we find out if it is financially stable; what do we look for? Is there anything appropriate we can ask (not in a first interview, obviously) if they offer him a position to get an idea?

 

For me, the smaller companies less than 10 years old are scary. LOL Just in terms of the stability that our larger than average family needs, you know? (Don't want to sound anti-small business because we are NOT!) Dh is interviewing with one next week and it *seems* perfect. If they offer dh a well-paid position and have decent benefits, only the nagging question of the company's longevity will remain...

 

Any advice on this one? There's no knowing for certain about anything nowadays, I realize. But I'd like some factors or signs to look for that make us feel more confident in one company over another. Thanks!

[athena1277]

:bigear: My dh is hoping to get a new job in the next few months. I would love to know any ways to help make sure it will be a good job he takes.

[Crimson Wife]

If it's a publicly held company, you can get a copy of their financial statements. That won't help you for most small businesses, however, since they are typically privately held. You can ask questions about the firm's history but in this economy, just having a solid track record may not be enough (unfortunately we've BTDT :()

 

Good luck!

[Melinda in VT]

I'd ask where the funding comes from. Is the company in the black, or does it have debt?

[6packofun]

At what point would it be OK to ask this? Not until after the position has been offered, I assume?

[Melinda in VT]

At what point would it be OK to ask this? Not until after the position has been offered, I assume?

 

It depends on the interview process. Normally I'd say during the second round of interviews, but the last time I interviewed, I met with the technology director, the CEO, and the marketing director one right after the other on the same day. That was the only day I interviewed with that company. I can't remember if I asked the CEO or if he volunteered, but that's when it came up.

 

I think it's important to keep in mind that the interview process is a time for the employee and employer to find out if they are a good match on both sides. You should feel confident asking for the information you need to make a good decision.

[blakereese]

The best thing is if your DH (or others in his field) know the company, the reputation, etc.

 

My DH just went through all of this. He was unemployed for 18 months and just got a fulltime job last August. Networking was most helpful. He was on LinkedIn and Facebook and a couple of other professional sites, and when he heard about job openings or got an interview he would ask around. His specialty seems to be a close knit group, and this worked for him. (I wanted to add, most of these people he really knew, they weren't just random facebook friends, iykwim...)

 

He ended up at a small, sort of young (a little over 10 years) company, which totally worried me. But it is really working out. And I feel like it is almost better than when he was at a huge, big name company. Now he has a face, is not just a cubicle man, and the place he works is so family friendly. So you just never know.

 

Unfortunately, in this tough economy it is so hard to predict. We thought his job was safe and important at his other job. It is still shocking what happened to him there. But you still are smart to check around, and find out what you can. At least you are making an informed decision that way.

 

Good luck! I hope he finds the perfect job for him (and your family!). :001_smile:

[blakereese]

It depends on the interview process. Normally I'd say during the second round of interviews, but the last time I interviewed, I met with the technology director, the CEO, and the marketing director one right after the other on the same day. That was the only day I interviewed with that company. I can't remember if I asked the CEO or if he volunteered, but that's when it came up.

 

I think it's important to keep in mind that the interview process is a time for the employee and employer to find out if they are a good match on both sides. You should feel confident asking for the information you need to make a good decision.

 

 

And I totally I agree with this, too. He should definitely ask questions as the interviews get more serious. I didn't want to imply that he should only get info from others. I was just trying to say that sometimes it is great to talk with people who actually do work there or have worked there, etc.

 

I gave my husband a list of things I wanted him to ask about the job. He could decide when it was appropriate to ask, or which person he felt comfortable with asking. But there were many things I wanted to know for our family before he took a job.

[rafiki]

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[RoughCollie]

I think it's important to keep in mind that the interview process is a time for the employee and employer to find out if they are a good match on both sides. You should feel confident asking for the information you need to make a good decision.

 

:iagree: It's been a long time since I have interviewed, but I always think of it as a two-way street. This has flabbergasted more than a few interviewers, but I've always been offered The Job despite that. Of course, today things may be different.

 

I have asked for external references and for financial statements. I've also asked to talk with employees who are at the same level as the job I am considering. All of my requests have been granted. I just explain that it is equally important that the company be a good fit for me, as it is that I am a good fit for them.

Edited January 7, 2011 by RoughCollie

[nono]

"Name some of your creditors who would say good things about you." If you are wanting to be very direct. ;)

 

This has to be asked to the appropriate person naturally, but a lot of hemming and hawing would make me hesitate. In good times, many, many years ago, it wasn't fun racing to the bank with my dh's check because whomever deposited last would have the check bounce...

 

Anyway, a more subtle way of trying to glean the same info would be to ask about suppliers/vendors and see who they use. A lot of jumping around could be a sign of stretching the bills financially. It could also signify other things entirely, which would also make me hesitate in going to work for a company constantly switching vendors.

[Dobela]

I don't know what kind of job your dh is looking at so this may not help. My dh sells insurance and while the person he is working for has only owned the business 2 years, the agency was built up over the last 30 by another person who retired. Most of his business transferred over to the new owner who changed the name of the company. To keep the contracts in place with the various companies he can sell thru, the new owner had to meet strict credit requirements, as well as many other requirements. While mismanagement could destroy any business, I wouldn't write off any business just because it is newer. It could be like this one - well established, solid financially, then bought out by someone who had to prove to companies and owners that he had the expertise and financial means to take over.

 

One way your dh may be able to lead into the more direct questions would be to ask how the owner/interviewer got into the business, how it grew sorts of questions. Before my dh agreed to work for the new owner he asked upfront, "I like my job and intend on staying thru to my retirement if at all possible. Can you share with me your business goals for the next 30 years?" At this point the owner shared his business experience, his financial stability, and so on. He was looking for a dedicated employee and was willing to demonstrate what he already had and how that would build into a long term business to keep a dedicated employee.