This week's troubles on Wall Street make me reflect upon an earlier downturn in the 90's in the financial services industry when i was a VP of HR to get a large national retail and mortgage establishment. While working in this industry, I managed two separate selective reductions in force affecting about 85 employees, plus a plant shut down of approximately 330 employees.
Certainly it would be a difficult time for me and for my employees. My husband called me "the black widow" then, asking me following each workday just how many employees I'd ended. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin my own ring HR consulting prepare. I'd been offered the option within a transfer to another division or a severance package. Quite honestly, I didn't want to manage anymore RIFs despite the fact that I'd become an issue matter expert, it truly opted for the severance package.
As the economy tightens, overall criminal activities increase drastically. This includes every type of crime from theft & embezzlement to workplace violence and corporate espionage. The American Bankruptcy Institute reports that consumer bankruptcy filings rose to at least.06 million in 2008, compared with 801,840 during 2007 & that trend will be far higher in 09.
More and more, individuals are facing increased financial pressures; which leads any sharp spike invested in areas of crime and litigious behavior patterns. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, problem of the increase the chance that employees will steal from employers, or leave corporation taking company assets or other sensitive information with these people. Expect IP retail outplacement theft and identity theft to reach record highs in the arrival year, and take additional precautions safeguard your business' most worthy assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 along with 29,960 in the most important three quarters of 2008 (according on the American Bankruptcy Institute), with no signs and symptoms of slowing down in the near future. So it's not surprising to see theft & litigious activity sky-rocketing. The US Chamber of Commerce estimates that employee theft costs businesses $40 billion dollars each year. This total is significantly the value of street crime losses annually in north america. The US banking industry reports losses of in excess of $1billion annually which is well above the combined losses from bank robberies. American businesses lose around 5 percent of annual revenues to fraud resulting in staggering losses close to $638 billion (based on research via the Association of Certified Fraud Examiners). Compromised systems, data leakage, and network security vulnerabilities also top the list of damaging and criminal activities when the economy nose-dives. Businesses, governments and educational facilities reported nearly 1 / 2 more data breaches last year compared to 2007, exposing the personal records of a 35.7 million Americans, according to the Identity Theft Resource Center of San diego. Organized crime rings are expanding, using insider employees, and are responsible for much of this theft. The FBI states that employee theft is best growing crime in america today.
Businesses should consider the effects of prior employees as well as recently laid-off employee behaviors, in addition to some existing employees. Employers and managers often overlook their existing employees who in a position to outwardly happy to have a job but inwardly feel they are owed more along with company for their loyalty, because their pay or options have been reduced, or simply considering that they often feel qualified to receive have more. The incidence of Work comp claims are already increasing and incidents of petty theft internally within companies is at an all-time high.