11 Signs A Company Is Going Downhill And It Might Be Time To Look For Another Job
If you notice any of these red flags, consider redownloading LinkedIn.
Voronaman | Shutterstock.com Job instability seems to be a universal issue, yet certain red flags can help unsuspecting employees avoid impending doom — otherwise known as layoffs, bankruptcy, or terminations.
From poor workplace culture to niche office changes, some subtle signs can alert employees to the company's true health and give them time to job hunt if things appear to be going south.
Here are 11 signs the company is failing (and it's time to start looking for another job):
1. Breakroom essentials get cut.
If you start to notice cuts in the budget for bare break room essentials at work — whether it’s coffee, water, or food — that’s a pretty clear red flag that the company is either not respecting you as a person or struggling to afford the usual expenses.
If it's the former, don’t let your employer take advantage of your fear of confrontation or innate kindness. You deserve access to essentials, especially when you spend most of your days in the office.
If it's the latter, and the company is struggling to make ends meet, take that as your sign to leave before things get worse.
antoniodiaz | Shutterstock
2. Pay is inconsistent or de-prioritized by leadership.
Getting paid in full and on time is your job’s responsibility — and should never be negotiated. If you’re not being paid, or your compensation, raises, and bonuses are not prioritized, look for another job that considers your livelihood a priority.
In many cases, workers are protected from reporting employers for inadequate compensation. According to Odell Law, you may be able to file a lawsuit for unpaid or late wages.
Still, there are often deep-rooted issues behind a company's inability to pay. If your employer doesn’t have the money to pay you, chances are the problem will only grow more intense — start looking for a new job while you have the freedom to.
3. Upper management isn’t available or visible.
Many people in the “Managers” Reddit thread suggest that the disappearance of upper management during daily activities is a considerable red flag for employees concerned about their job stability. Not only is it a clear indicator that they’re preoccupied with something larger than daily operations, but their failure to support and be available for employees is a red flag.
Consider using your free time away from the shadow of a lurking boss or micromanager to look for alternative jobs, fine-tune your resume, secure your references, and set yourself up for success should things go awry.
Kaspars Grinvalds | Shutterstock
4. The frequency of performance reviews has increased.
Others in the Reddit thread consider the increased frequency of performance reviews at work a red flag of management’s preparation for upcoming layoffs.
"When they go from one performance review a year to one every quarter," one user wrote. "They want to lay off/fire people and need a quick paper trail."
5. They start laying off employees.
Hopefully, layoffs aren't the first red flag you notice at your company, but for many people, they can be an unexpected shock. According to an Intoo study, over 40% of people have been let go from a job at least once, and many of them have been in the last few years.
To avoid being caught off guard by an unexpected layoff, ensure you’re keeping tabs on the pulse of your industry — inside your company and beyond. The earlier you can anticipate and prepare by looking for a new job, the better off you’ll be.
Stay active on Linkedin, network often, build a community, and keep an updated resume.
6. Great employees and managers are leaving.
“If top talent starts leaving, you know you should be also,” career strategist Ashley Tronson advised on TikTok. “Top talent does not stay at jobs where they are not appreciated. So if your favorite co-workers are starting to look for jobs ... I'd be looking for a job also.”
7. Clients and customers start leaving.
Consider that a red flag if you’re in a client-facing role and notice more customers leaving. Especially if clients are your primary source of revenue as a company, the more clients you lose, the more at risk your compensation will be.
Layoffs often occur unexpectedly for employees, but for management, they’re simply a way to cut costs after losing income. If you’re noticing changes in your clientele, take it personally.
8. Employees are leaving and not being replaced.
It’s not only a red flag when great employees are leaving your company but an even bigger one when your leadership is not actively replacing them. For employees left at the company, chances are you’ll pick up the extra work responsibilities they leave behind without extra pay or recognition.
Especially if you’re “a high achiever” at work, demonstrating competency and a great work ethic can be harmful when leadership is looking to offload work onto their remaining employees. If you’re feeling overworked or underappreciated, take that as a sign that they’re unwilling — or unable — to hire additional people to support you.
9. Company morale is low.
A workplace study from the MIT Sloan Management Review indicates that “a toxic culture” is the number one driver of employee resignations—in fact, it’s 10.4 times more likely than compensation to drive a worker’s decision to leave.
As unlikely as it may seem when in a toxic job, finding somewhere with a culture that values you is possible. Don’t let your employer take advantage of you, no matter what. You deserve better.
Martin Lauge Villadsen | Shutterstock
10. Shifting to ‘trendy’ working strategies with no clear direction.
Other employees on Reddit suggest that implementing “trendy work strategies” or business models like NFTs is a “red flag” for a company's health. Especially in tandem with poor communication or unclear priorities, these “trends” can be a sign that your employer is essentially “grasping for straws.”
Whether revenue-driven or a last-ditch effort to save their company, be cognizant of how leadership prepares and communicates new strategies at work. As a valued and supported employee, you should never feel “thrown into” a project or strategy without knowing its purpose.
11. An unexpected all-company meeting is called.
Likely one of the last red flags you’d notice regarding your company’s health, an “all company” meeting — especially one scheduled out of the blue — can be a bad sign for your job stability.
There's likely uncomfortable or large-scale news to share, especially for larger companies, where scheduling time for everyone to be together is incredibly difficult. If it can’t be sent in an email, there’s likely something more serious lingering over leadership.
Don’t ignore workplace red flags—use them to prepare yourself for an upcoming job search or gain the momentum you need to advocate for yourself. You deserve a company that values your effort, time, and well-being.
Zayda Slabbekoorn is a News & Entertainment Writer at YourTango who focuses on health & wellness, social policy, and human interest stories.