What should I do if it feels like my company is failing?

Welcome to Pressing Questions, Fast Company’s work-life advice column. Every week, deputy editor Kathleen Davis, host of The New Way We Work podcast, will answer the biggest and most pressing workplace questions.

Q: What should I do if I feel like my company is failing?

A: This is a bleak question, and unfortunately not uncommon right now. I’ll address it from two different angles: 1.) If you feel the failure of the company is unfixable or that you aren’t in a position to help; and 2.) If you have hope that you might be able to turn things around. 

When the failure of your company is certain (or unfixable)

First, here are some of the signs that things are going south. One of two can just mean the company is going through a rough patch, but if these start adding up, it’s harder—but not unheard of—for a company to recover.

• The company you work for has been losing significant amounts of money for more than a year
• The company has had a significant round of layoffs, or more than one round of layoffs in the past year. Or employees are being offered early retirement or buyouts
• The company has a hiring or raise freeze
• Several star employees leave
• Consultants are brought in to revamp things
• The vision and strategy of the company changes or seems uncertain
• Upper management suddenly starts conducting a lot more closed-door meetings
• There is a significant drop in customers or clients
• Projects are cancelled with no explanation

That’s a simplified and not comprehensive list, but if you are asking this question, you’ve probably noticed a few of those signs along with the general “things are not great” vibes. And regardless of if or how soon your company might close, go bankrupt, be sold, etc., it can feel pretty demoralizing to work for a company that’s not doing well. You likely have a feeling like nothing you do will matter and you certainly aren’t motivated to do your best work.

In this case the ending is the same: You will have to find a new job. How you arrive there is your only choice. You can look for your next role, resign (yes, you should still give two weeks notice), and leave before the ship sinks. Your other choice is to wait it out. The reason to do that is to collect any possible severance—especially if you’ve been with the company for a long time. 

When there’s hope that you can turn things around 

Now that we’ve gotten the worst case scenario out of the way, let’s end on a slightly more hopeful note. If you feel like things are bad but can still be turned around, your ability to effect change depends a little bit on your role. The general spirit is the same, however. You can either:

• Return to what worked before: Use your institutional knowledge and lean on your strengths.
• Try something totally new: Throw out the notion of what worked before and get creative with fresh ideas.

Yes, those are completely opposite tactics. But both can be helpful depending on the issues facing your company. Here’s how to decide what to try:

When to lean on what worked before: Sometimes businesses go astray because they venture too far from their core mission or what made them successful in the first place. If you’re in a leadership position and there have been a lot of changes over recent years or a move away for what worked in the past, it’s a good time to realign your team’s goals with those core principles and eliminate the obstacles that get in the way.

That can even mean things like how you work. If your team was happier and more productive working remotely and output and morale has dropped since a company wide RTO policy, make the change back. Admitting you were wrong is uncomfortable. But it’s also the sign of the type of emotionally intelligent leader who people want to work for.

If you aren’t in leadership, but see that new policy is hurting the company, you can still suggest changes. Just make sure you are armed with data. Show, for example, that your customer or sales numbers were higher before the company cut back on contracting with certain suppliers or that the candidate pool has shrunk since the company ended its DEI initiatives. 

When to try something totally new: Companies often fail because times change and they don’t. If your company is stuck in a “this is how it’s always been done” mindset, it might be time to try something new. This is a huge mindset shift and individual employees can’t overhaul for the whole company. But that doesn’t mean you can’t get a little experimental.

If there are too many layers of bureaucracy in the way of making change, it might mean trying something a little unofficially. While the notion of asking forgiveness instead of permission is certainly riskier, if your company isn’t doing well anyways you have less to lose. This could mean things like collaborating across departments or changing a workflow or reevaluating departmental budgets.

Feeling like you are on a sinking ship is a tough spot to be in at work, but it can also give you the freedom to step outside of your comfort zone.

Need some more advice on navigating a tough business climate? Here you go:

• This is how to be an empathic leader during stressful times
• How to motivate employees in difficult times, according to a psychologist
• 4 ways to keep your teams happy and productive in tough times

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