How to Evaluate a Potential Employer Before Changing Jobs
Do your due diligence before making a job change.
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With global inflation, political turmoil and rising interest rates, these are uncertain times. And given that many companies are taking cost-cutting measures, job offers are being canceled even before the first day of work for employees. Therefore, you may ask yourself whether you should stay in a stable job, even if it is unfinished or considering a job change. It’s not an easy decision.
But changing jobs still has its benefits. According to Pew Research, the typical American who changed employers from April 2021 to March 2022 received a 9.7% jump in their real pay from a year earlier. This happened despite the increase in the rate of inflation. In contrast, less than half (47%) of those living with the same employer experienced an increase in real income.
While this is still a job-seeking market, it pays to be alert and prepared. There are ways to reduce risk by looking closely at your potential employer before making a job change. These tips will help you do your due diligence so that you can approach the process with wisdom and clarity.
Check Company Culture
Ideally, you want to work for an organization whose company culture is in line with your values. An organization’s website is an excellent place to start. The mission statement will give you an idea of the company’s values and priorities. Use social media sites like LinkedIn to connect with and message current or former employees. You can also expand your search to review websites on Glassdoor, Indeed and Compare. Also, pay attention to how you were treated during the interview process and listen to your intuition. If you are invited for an on-site interview, arrive early so you can observe the environment. Then try to feel the overall energy in the office and see how people interact. Try to make sure it’s a place that inspires you to do your best work every day.
ask tough questions
It is important to ask intelligent questions during the interview process. some examples are:
- How is the company adjusting during these challenging economic times?
- Are there any concerns about future layoffs or hiring?
- What are the key milestones the company needs to achieve next year?
- Where do you see the company in five years?
- Which stock option or equity incentive plan does the company have?
Make sure the company is being as transparent as possible. For example, if the team can’t answer questions related to funding or you need to make a financial investment before joining, they can be significant red flags.
research financial performance
If you are thinking of joining a public company, you are in luck. There’s no shortage of financial information at your fingertips. You can search the EDGAR database, which gives you free access to common documents on file with the SEC, including annual and quarterly reports. For private companies and startups, it is a bit tricky. First, find out how the company is funded. If they are backed by a reputable venture capital firm, this is usually a good sign. There are also subscription databases such as CrunchBase, which provide data and analysis on startups, investors, and incubators. Finally, Dun & Bradstreet is a good source of information on private organizations, although the amount of data will vary from company to company.
look at the leadership team
Before making a job change, it’s important to research the leadership team—especially when you’re interviewing at a startup. First, find out the track record of CEOs at other companies. Make sure they have a focused vision, strategic plan and adequate resources. Ask yourself questions like these:
- Are they honest, straight and truthful?
- What is their leadership style, and how do they work under pressure?
- If it’s a startup, have they had other successful exits?
A strong leader must be able to manage short-term goals without compromising on the long-term strategy.
Network with employees and customers
If you know any current or former employees, it’s a good idea to contact them. The best way to learn about a company is to talk to people who can provide you with real-life insights. Another idea is to reach out to current customers to see how satisfied they are with the product or service. You can learn a lot about how an organization manages its employees based on how it treats customers. The more information you can gather, the lower the risk when you change jobs.
The most important thing to remember is that the recruitment process is two-way. You are valuing the company as much as they are valuing you. Before making a job change, take these steps to research a potential employer. By doing so, you will be able to reduce your risk, make an informed decision and ultimately set yourself up for long-term career success.
