31–40 of 61 posts
If you are going to work a few weeks for free, you may as well think of a good small business application and build it. At least you will make money from it or you can add that to your resume.
There aren't enough specifics in your write up to know for sure what to do. However, either you hold equity or you do not and that should be a major factor.
If you are an equity holder in this company and it is a funding issue, not a core business issue, I would stay and see it through. Sometimes you can cut way back on the leverage and nurture the core profit with the equity holders you have.
If you are an employee, exit as diplomatically and respectfully as you can. Why? You made an agreement with your company to trade services for pay. They have defaulted. It sounds like they have done so without a heads up. This shows a lack of integrity on the part of management and is even more troubling than the cash.
There are things in the world that can blind side a good management team - abrupt law changes, competitor introduces game changing technology, key team member leaving, etc. However, pay roll is a cash flow issue and one management teams can look ahead and predict.
If a management team can't predict, process and pay payroll, how well can they execute on the things that make your business money?
If they can execute on payroll but have chosen not to, or to not tell you, are they people that you should throw your lot in with?
A business exists to make money. If it can't pay you, it isn't making money and either should not exist now or will not exist in the near future. There are rare exceptions, but the odds are so bad that I would not take the chance or extend the trust. There aren't enough specifics in your write up to know for sure what to do. However, either you hold equity or you do not and that should be a major factor. If you are a…
(Summary: founder trying to keep stringing everyone along gets convicted of securities fraud.)
Aside from payroll, your company is likely facing massive amounts of debt to their creditors. While you may have an emotional connection to the company, bill collectors acting on behalf those with outstanding invoices with your company will have no such connection. There's likely a backlog of unpaid invoices that will also need to be paid. Employees walk ... creditors sue. Your company will pay creditors first, and i…
I worked for a small startup and had that problem several times. It was never a long enough amount of time that I really questioned whether or not I would get paid, but it did annoy me and the way the owner handled it made a very 'awkward' work environment. He generally gave an explanation as to why it was our fault, and why we shouldn't question him. Eventually I just left. He was very upset when I quit. He felt tha…
Never fall for that trap. I have seen quite a bit of this attitude - mostly pulled off on younger employees during salary negotiations.
In fact I have witnessed it so often that I think this must be something they teach in business schools, probably under the "optimizing employee performance"-tab.
You don't owe your boss anything beyond the regular performance that you are paid for. In most companies I'd even go as far as to say that they technically owe you for the various "extra miles" that have become the norm in our industry.
And I guess that's exactly the point they are trying to camouflage when they attempt to push you into the guilt corner.
Earlier quoted context omitted.
No, legally, the employees get paid first.
I've seen first-hand that companies don't always do this. Perhaps once a company files bankruptcy there's more oversight with this ... but before that happens, I've absolutely seen a company trying to cover its ass and limit its legal expenses by closing out unpaid invoices and stiffing their staff.
Now, of course, at the bankruptcy hearing the company might be able to pay money due to staff and avoid being put under administration and shut down, but it's a very effective way of ensuring companies keep on the good side of their staff when cash gets tight.
Taxes also pay for a fund that covers back payment of salary for up to 6 months in the case of a bankruptcy where staff have been more lenient, and so provides both a safety net and a reason for staff to be more accommodating if there's hope of improvement.
I was working for a company some years ago, and pay started to get late. No word from management, no explanations, and when it did turn up, no apologies.
We were all starting to look to jump, and some did. I found out what really was going on and started to make serious plans.
I won't go into full details, but after about 6 months we managed a hostile management buyout. We dealt with some unpleasantness from some people who jumped early, and half of those who had stayed were made redundant. That was a horrible, horrible thing to do, but we had no choice - we had no money. It cost us a bundle, but it was the only way to save the company.
The ones who stuck with us are now secure in their jobs, have equity, have 50% of the six months of missing pay restored (we weren't responsible or liable, but we honored it anyway) and have a fantastic work place.
In the middle of the worst, when negotiations were bad, we asked a few people why they were still working 5 hours a day, four days a week, when they hadn't been paid for three months, and everything was uncertain.
"We don't want to work with anyone else." was the rather humbling reply.
Since then there have been months when cash-flow was tight, and money wasn't on time. Company directors, I have learned, are legally obliged not to destabilise the company, and telling employees the exact situation when money is tight can be regarded as that. It's not always the owners' fault. Employees are quick to say "You should've told us." but legally, the situation is not always that clear.
I have to say that we, the directors, never took more pay than the employees until they were back on full pay. even then we took 1/4 pay for a further few months, then 1/2 pay until the cash-flow stabilised. We never asked employees to forego pay without ourselves first taking nothing.
I'm not making excuses for your bosses, nor suggesting that you stick it out and hope it all works. My employees did, and they're very, very pleased about it. I stuck it out, took steps, and now (part) own the company.
Take control, one way or another. In a smaller company, jumping is not the only option.
Earlier quoted context omitted.
Bad advice. Dont burn your bridges. You may need recommendations from your boss or he could sue out of spite. WRT your coworkers, I was thinking of stories of people would get ready for work every day, go sit on a park bench until quitting time, and go back home, because they couldnt face the fact that all the meaning in life was gone. People have a hard time dealing with major setbacks like death, divorce, or loss o…
I disagree that this is bad advice. Perhaps I didn't make myself clear enough. You are in a time warp. This game is over. It was over long before OP posted here. You are on a sinking ship and must jump. Your co-workers are in the same boat. Some may even say you have a moral responsibility to help them. In real world disasters, some risk their lives to help others escape. Sending this link to your co-workers could gr…
I believed that the Company could have turned around, but needed the capital. However an under capitalized Company has a very slim chance of being successful. Even if you stay and work, you become an observer as everything you build starts to crumble and your hands are tied.
My recommendation still stands. Get out as fast as possible and remember, when one doors closes another opens.
Startup #1: The CEO took payroll out of his own personal credit cards and paid us all anyway. That startup went public and grew to be very successful.
Startup #2: The CEO was already a millionaire, but wouldn't put in a cent of his own money. That startup failed.
In short, if the CEO cannot find a way to pay you, then he isn't cut out to be the CEO. Don't leave because payroll was missed -- Leave because the leadership isn't there. But by all means, LEAVE.