Should You Take a Job With a Company That’s Laying People Off?

by Martha I. Finney

I was poking around a few of my favorite job sites this morning, and discovered that a particular company was announcing that it was hiring.  Great! So what’s the problem?  One of my dear friends had just been laid off from that very company not one month ago. Oh.  Ouch. Chances are excellent that candidates for jobs within this company may not realize that some really great talent had just been cut loose. And this is a brand name company that would look good on any resume.  So, should job seekers give this company a pass? Maybe. Or, then again, maybe not.  It all depends on your needs, what the company has to offer. And…what your instincts tell you when you go in for the interview.

In economic times when job opportunities seem scarce, it’s tempting to ignore your inner warning bells and leap for the first job offer that comes along. But what happens if that job offer is from a company that is actually laying off employees? How smart is it to take a job there? It could be very smart, depending on what you want, who you are, where you are in your career, and whether the company knows what it’s doing. It seems counterintuitive to see job listings placed by companies that have announced massive layoffs. But there could be some excellent opportunities inside these organizations. The question is: Are those opportunities a good fit for you?

Good reasons to take the job:

You’re just starting your career, and the company is filling its new-hire pipeline with high-potential newbies. Some companies have the foresight to know that their future depends on grooming a wealth of early careerists who might be around for a while. You know that this company at least has the long-term perspective to believe that it will survive the current crisis and will need people just like you in the long run. That’s a sign that there might be some kind of talent management plan in place. It might not be so apparent to the people boxing up the contents of their desks, but at least you can get started in your career there. Even if you do get laid off three years down the road (remember, no promises), three years at that company are better than three years saving yourself for a non-existent promise and killing afternoons watching Dr. Phil.

The company is changing strategy and the job you’re applying for directly serves that strategy. No matter what kind of work you want to pursue in the corporate world, you can find a company that regards your skillset as an essential piece of their revenue-generating machine. “How does this position fit your strategy moving forward?” would be a very smart question to ask the interview. A clear response will tell you that, for the time being, your job is relatively secure.

The company would look great on your resume. So what if it turns out you’re only there for a couple of years? If the company is top notch, the training, exposure, insights you get could be like an MBA course in a A Player graduate school.

You need the skills and experience that this job will give you. Certain career paths require certain tickets to be punched. And depending on where you are in your life and career, your career path ticket may be more important than job security or the prospect of having to explain to people why you’re in the job market again a few years down the road.

Signs that the job might not be the best choice:

The hiring manager sends off angry or distracted vibes. Listen to your intuition. In a company that’s laying off dozens, hundreds or thousands of people, you’re going to be walking past empty desks and depressed people. That’s natural. Tragic, but to be expected. However, if the person interviewing you for the job – especially if the person would be your supervisor – is giving you the impression that “this place is a pit,” go with that. There are way too many stories of people quitting perfectly good jobs to take on a better-paying position elsewhere, only to find themselves canned along with the rest of their new department before they have even received their new business cards.

The hiring manager seems freakishly cheerful. Who is he trying to snooker? Himself? Or you?

Your interviewer can’t clearly paint the picture for you as to how this position directly serves the company strategy. Can you understand and explain in one simple, easy sentence how this job is essential to the company’s direction? No? Call it a day.

The job isn’t exactly a new one and the person you’re replacing isn’t exactly a young one. Take a look around the prospective new department or company. Anyone over the age of, say, 45? No? Better find out why not. If the company itself is young or in a trendy business, like fashion or video games, perhaps there’s a good reason why all the employees are young. Or perhaps the downsizing company handed out absolutely irresistible early (and totally voluntary) early retirement packages. Check it out before making any assumptions – or talking yourself out of an instinctual gut feeling. A company without laugh lines could be a company without integrity.

You need some sign of stability on your resume. This isn’t about the company, it’s about you. If you are a job hopper, and you have a track record of being in one job for only a year or so, you might want to mix it up a little bit and find a company where you can be reasonably sure that you’ll be staying for a while. Happily, job-hopping doesn’t have the stigma it used to have, as long as you can clearly tell a story of how each position has built your skills, knowledge, growth and maturity – all of which tells an employer good things about you. But, even in fast-moving economic times, it’s smart to pepper your resume with a little longevity every now and then. If this is the time to do that, try to make very sure that this employer won’t be taking the hatchet to your department or position any time soon.

Tags: evaluating job offers, job search, job search advice, lay offs, Martha I. Finney

This entry was posted on Thursday, October 22nd, 2009 at 2:30 pm and is filed under Blog, job market, job search. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.