<p>DS is a senior now and his job search is bearing fruit. But I found myself wondering… how does a college senior (or anyone) evaluate the potential/stability of a prospective employer? </p>
<p>Remember the days when GM was considered a pillar of the economy? </p>
<p>I guess I’m glad that my own kid is not looking to the automotive or Investment Banking industries. </p>
<p>I wonder if kids for whom federal agencies might be an option should give such possibilities extra “points” as possibly more secure than a lot of possible private employers? </p>
<p>Even if a kid were facile in looking at financial statements, are those even mildly reliable for evaluating the future of a corporation these days?</p>
<p>I don’t know. I once got hired by an architectural firm that then laid me off three weeks later in a mass layoff. I really wondered what was wrong with them that they didn’t realize they couldn’t afford me in the first place. A month after that they hired me back, but as a part-timer. I’m in a business where layoffs are quite common - though in fact I’ve only been laid off twice - once in this country, once in Germany. Both times I got hired back by the firm that laid me off.</p>
<p>Yes, I once worked for a major real estate research firm. I left it to take a job at a small, new boutique firm. I considered my move risky. Within a few months, that major firm closed the office where I had been. So the “safer” company wouldn’t have been so safe at all. Shows what I knew/know.</p>
<p>It’s impossible to evaluate companies in this environment.</p>
<p>My husband’s blue-chip employer–which has an exceptionally strong credit and cash position–recently announced that customers worldwide are canceling orders at a staggering rate. As a result, the corporation will soon begin laying off employees in an attempt to keep the company balance sheet strong. I believe this scenario will be played out in many, if not most, companies over the next year or so. </p>
<p>Won’t your son graduate with an engineering degree, jmmom? My daughter will also graduate next spring with an engineering degree. She’s hoping to land a job in the alternative energy field because she feels energy will drive the economy going forward.</p>
<p>A word of caution: My daughter’s boyfriend recently lost his position as a mechanical engineer in a start-up. The company folded when venture capital funding vanished in the latter part of this year.</p>
<p>In large companies, one division may be hiring while another has massive layoffs. There may be some positions that are long-term investments and others that generate cash with consulting. When the business dries up, the consultants go. But long-term engineering or other projects that have funding continue on.</p>
<p>The ability to read charts can help. If your company is falling at a much faster rate than the competition or the market overall then insiders may be voting on the company with their feet. If the company’s stock price is going up while the market is going down, you might have a real winner of a company. Panera Bread, PF Chang, Cheesecake Factory stock prices did well in the tech implosion several years ago while the market was heading south.</p>
<p>I would definitely look at earnings reports if the company is public. If they are private, then ask a question or two about their financial health at the interview. Do it in a constructive way though. One approach would be to ask them about the expected growth rate for the division. A look of horror would be a negative response.</p>