Job security in a small company
Discussion
Hi, i currently work for a small company, it currently employs 7 engineers full time and has 2 people in management. We have a relatively small number of clients a couple of which accounting for a lot of our business which means a lose of a single client can land the company in a bit of trouble.
This has happened a a number of times before and we have got through. But it is happening now again i have learned today we are losing a big contract in just over 3 month. We get a reasonable amount of notice so the last few times they've always been able to fill the hole, but it is a repeating pattern, i'm not sure if this in the nature of many small business in a tough economy and we are perhaps one of the lucky ones as we're able to stay afloat or if it is a sign that really it's going to go bad sooner rather than later.
My main concern is that recently i have been house hunting and am very close to putting in an offer on a house, would i be mad now to consider applying for a mortgage knowing that 3 months down the line i may have no guarantees of continued employment, or is this threat something i've always got to live with working at a small company.
Things going in my favour is there is a relatively high demand for what i do, and have seen plenty of jobs locally that i reasonably meet the experience requirements for. things counting against it are, i will not have any cash reserves after buying the house, all my savings will be going into it
This has happened a a number of times before and we have got through. But it is happening now again i have learned today we are losing a big contract in just over 3 month. We get a reasonable amount of notice so the last few times they've always been able to fill the hole, but it is a repeating pattern, i'm not sure if this in the nature of many small business in a tough economy and we are perhaps one of the lucky ones as we're able to stay afloat or if it is a sign that really it's going to go bad sooner rather than later.
My main concern is that recently i have been house hunting and am very close to putting in an offer on a house, would i be mad now to consider applying for a mortgage knowing that 3 months down the line i may have no guarantees of continued employment, or is this threat something i've always got to live with working at a small company.
Things going in my favour is there is a relatively high demand for what i do, and have seen plenty of jobs locally that i reasonably meet the experience requirements for. things counting against it are, i will not have any cash reserves after buying the house, all my savings will be going into it
If I've had have known 2 years ago when we bought the house we're in now that my company's finances were about to nosedive there is no way I'd have moved.
However I'm very glad that we did in hindsight! Yes the last 2 years have been a bit of a struggle, yes we've had to cut back on our spending during that time, but it was only for 2 years. Yes you need to be sensible and not over stretch yourself, however if you wait for the perfect time then you'll never move.
Working for a small company is often exactly as you describe, unless the company is able to build up some reserves should cash inwards be depleted significantly. Perhaps the strategy moving forward should be to win more customers with lower order value, to spread the risk should the worst happen and 2 or 3 be lost at the same time.
Our issue was an MD that seemed to want to spend money faster than I could bring it in, and a determination to fall out with our investors as often as possible. I've just left by the way, and on doing so suddenly realised how much more I should actually be getting paid. Happy days!!
Unless you think the company is in serious danger of going under, in which case find another job anyway, then make the move.
ETA - how will the loss of this customer affect the stability of the company, can you survive without them, or do you need to secure a new contract quickly?
However I'm very glad that we did in hindsight! Yes the last 2 years have been a bit of a struggle, yes we've had to cut back on our spending during that time, but it was only for 2 years. Yes you need to be sensible and not over stretch yourself, however if you wait for the perfect time then you'll never move.
Working for a small company is often exactly as you describe, unless the company is able to build up some reserves should cash inwards be depleted significantly. Perhaps the strategy moving forward should be to win more customers with lower order value, to spread the risk should the worst happen and 2 or 3 be lost at the same time.
Our issue was an MD that seemed to want to spend money faster than I could bring it in, and a determination to fall out with our investors as often as possible. I've just left by the way, and on doing so suddenly realised how much more I should actually be getting paid. Happy days!!
Unless you think the company is in serious danger of going under, in which case find another job anyway, then make the move.
ETA - how will the loss of this customer affect the stability of the company, can you survive without them, or do you need to secure a new contract quickly?
Edited by antspants on Saturday 18th May 07:10
The size of the company isn't really the point, this can happen to almost any company. The advantage with a small one is it may be easier for them to replace a contract with, although large to that company, probably isn't that large or uncommon generally.
As to house hunting, I'd wait a few weeks and see what happens.
As to house hunting, I'd wait a few weeks and see what happens.
I've worked for a number of companies, from very small to medium sized companies. I personally don't think there is any such thing as job security in any position (IMHO). There is just more separation between the s
t and the fan.
At a couple of the smallest companies I've worked at, the writing was on the wall for all to see. You can see the contract wins, the losses, the expenditure on wasteful projects and investment in the wrong technology or markets.
Conversely, one medium sized company I used to work at has just made all the staff at that location redundant. This follows a series of management buy outs, venture capitalist investments, mergers and acquisitions. The company is profitable overall, it just could be more profitable without the overheads that having a duplicate facility carries.
I think it would be wise for anyone considering making a significant purchase, such as a house, or even a car on finance would be best off providing some level of security themselves first. The old adage of having 3 or 6 months salary in the bank may be incredibly hard to achieve when trying to save an astronomic deposit on a house but is probably more secure than relying on any one employer.
t and the fan.At a couple of the smallest companies I've worked at, the writing was on the wall for all to see. You can see the contract wins, the losses, the expenditure on wasteful projects and investment in the wrong technology or markets.
Conversely, one medium sized company I used to work at has just made all the staff at that location redundant. This follows a series of management buy outs, venture capitalist investments, mergers and acquisitions. The company is profitable overall, it just could be more profitable without the overheads that having a duplicate facility carries.
I think it would be wise for anyone considering making a significant purchase, such as a house, or even a car on finance would be best off providing some level of security themselves first. The old adage of having 3 or 6 months salary in the bank may be incredibly hard to achieve when trying to save an astronomic deposit on a house but is probably more secure than relying on any one employer.
In some ways you may be more secure at a small company, as if they have the right management then they can adapt to changing times more easily than bigger companies can.
Truth is that there is no such thing as a secure job, at least not in the private sector.
If you think trouble is imminent then wait, but if your concern is just a general worry over job security then you could be waiting an awful long time before you do anything.
Truth is that there is no such thing as a secure job, at least not in the private sector.
If you think trouble is imminent then wait, but if your concern is just a general worry over job security then you could be waiting an awful long time before you do anything.
Large or small, no real difference. I purchased a new house on September, in feb my Co went into receivership, 1000 people made redundant in one go. We were heading towards a billion £ revenue. There was no real clue until we got the call.
I'm back in work. My biggest tip is to have some savings as you will need them if it all goes wrong.
I'm back in work. My biggest tip is to have some savings as you will need them if it all goes wrong.
oddjober said:
the only safe bet now is the Government, N.H.S., school, police, fire etc..
Bizzare how people think this. My missus was made redundant from the Cilvil Service. Teachers have been redundant around here as schools merge and close. NHS staff are having to reapply for their own jobs and that job will often be at a lower grade than they're on currently. Happened to my BIL twice in a few years and the second time (going from 14 to 4 people) he didn't get a job so took early retirement (which is a nice option, but he really didn't want to leave). My daughter gave up her permananet post in the NHS and moved to a fixed-term-contract to get promotion. If the job isn't funded beyong 12mths she's out on her ear.
Have you not read the stuff currently in the news about the fire brigade? Basically the Government would like to get rid of most of it and use volunteers.
On the other hand I worked for a small company for 19years. It was great money but I thought it could end at any moment and so was far too cautious, especially re changing location (they asked me several times to move down South) and even just taking on a bigger mortgage.
They did eventually get bought and most of us were offered and took redundancy. So it came true in the end, just took way longer than I ever imagined.
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