(Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)
Be careful chasing after jobs with burgeoning, sexy, high-flying companies. Understandably, you want to be associated with a top firm to earn a large compensation package, stock options, internal growth prospects and social status. You feel that working at a marquee brand-name company can open doors for you in the future. It will catapult your career as hiring managers lavish praise over your résumé.
However, recent events show that there’s a catch. Many of the highly coveted, fast-growing and headline-catching companies turned out to be a flash in the pan. These glamorous companies crumbled when the economy, stock market and job market softened.
From Boom To Bust
Netflix, Zoom, Peloton, Wayfair and Shopify were all pandemic darlings. As people were sheltering in place at home, they were living online. Watching Tiger King on Netflix relieved the boredom of being stuck indoors. You may have ordered a Peloton bike online since your gym was closed due to Covid-19 restrictions. To communicate with co-workers and family, Zoom was a savior. Shopping for work chairs, desks and home furnishings was fun and easy on Wayfair or Shopify.
These and other related pandemic stars saw their stock prices skyrocket due to the demand for their products and online services. The downside was that people couldn’t wait to get out of their homes once the economy reopened. The share prices of work-from-home stocks cratered. Massive layoffs ensued, as their business models didn’t hold up as well in the post-pandemic era.
Oh, How The Mighty Have Fallen
Tech-giant Apple wasn’t immune to market forces. The company laid off around 100 contract recruiters, foreshadowing that there won’t be much new hiring happening. Social media platform Twitter laid off a third of its talent acquisition team, as the company is contending with a contentious takeover battle waged by Elon Musk, and plagued with allegations of bots overrunning the site.
The once-blazing, hot crypto sector saw Coinbase, Gemini, OpenSea and others digital asset platforms downsize workers, enact hiring freezes and rescind job offers. The once go-to site for trading meme stocks and cryptocurrencies, online startup brokerage firm Robinhood let go of 23% of its staff in its second round of cuts this year.
Know What You’re Getting Yourself Into
This doesn’t mean that you must always avoid fast-growing companies, cool and new startups or buzzy businesses that garner a lot of attention. Just don’t go after a company because the media or your friends say it’s great.
To avoid joining a roller-coaster ride that may be fun for a while, but could quickly veer off the rails, do your homework. Check into the financial situation of your target companies. See if they are earning meaningful revenue and profits. If you are not numbers oriented, find someone who can read and understand financial statements to determine if they are in a strong position or hemorrhaging money.
If it’s a venture capital-backed startup, are they burning through cash, or does the company have sufficient funds to weather challenging new times?? Research the founders and top executives to learn about their past successes and failures.
High-profile companies can seduce you into complacency. Don't let your guard down just because they are well-known or currently the hot business of the month. Go on LinkedIn, Blind, Glassdoor, Facebook and Twitter to find out what workers say about their companies. Their posts may either make you want to run away or they’ll alleviate your concerns.
Be On Guard When Interviewing
When you interview, avoid getting starstruck. Ask tough questions. As you meet with other people during the hiring process, inquire how they feel about the place. Are they happy, discouraged or fearful of impending doom?
Tap into your network to see if you know anyone who is currently or has recently worked at the company you’re interested in. Politely ask if they could give you the real insider scoop of what’s happening, and whether or not they would recommend that you accept an offer and work there.
What To Expect Moving Forward
With the Federal Reserve’s new mandate to cool down the economy, in an effort to whip inflation, it’s reasonable to conclude that the job market will be softer for a while. As the economy contracts, interest rates rise, inflation rages and a possible recession is on the horizon, businesses will reign in their costs and be more budget conscious.
The Great Resignation trend flourished when jobs were abundant and readily available. If or when this changes, you can no longer quit your job and feel comfortable that you’ll automatically find another better-paying opportunity. Take your time before making any rash decisions. You may end up sitting on the sidelines for months, as there are fewer openings for your line of work. In a more austere environment, you need to be cautious.
