All the employers promise some attractive salaries to its employees. But are they really getting the pay that the employers promise them? Some of them do get paid with the amount they are promised with while others are being paid lesser than their promised salary. Nobody wants to end up in the latter group. So here’s what needs to be done to ensure that you do get paid well.

Before signing up for a company, first, you need to find out about the company you are signing up for. If you are going to join a well-established organization you need not have to worry because you will get your promised pay. It’s not possible for an organization to grow and establish itself if it does not pay its employees well. However, when it comes to start ups, you need to take your step carefully. There are many ways to find out if the start-up will pay your salary regularly. But one guaranteed way to know that is to find out what is called in economics as current ratio.

So how can one find out the current ratio of the organization that hires them. To do this the first thing that is required is the balance sheet of the organization. Getting this balance sheet is not as easy as it sounds. You would need to have contact with another employee in the organization who can get this balance sheet for you.
Once you’ve got this, you need to find out the current assets- available on the assets side of the balance sheet and the current liabilities- available on the liabilities of the balance sheet. Current assets include the company’s cash, the amount that the customers owe to the organization, inventory and anything else that can be potentially yield them cash in the next twelve months. Current liabilities refer to the expenses that the organization could be facing in the next year. After knowing both of them the only thing that will be left to do is to calculate the current ratio.

Current ratio is the current assets divided by the current liabilities. The resultant value should be preferably above 1.2. Current ratio is a good indicator of the company’s financial situation. If the current ratio is above 1.2 then it means the company is doing well and will pay you the promised salary regularly. But if the ratio is below this danger line then you need to think twice before you take up the job and if you decide to take up the offer, you are doing it at your own risk.

About the author

Sean Holmes

Leave a Comment