This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry as i was a VP of HR to enjoy 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 personally and for my employees. My husband called me "the black widow" then, asking me at the end of each workday what number of employees I'd terminated. Once I finished managing the plant shut down, Next, i received my own severance package and exited the company to begin individual HR consulting prepare. I'd been offered the option for the 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 person matter expert, then i 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 one.06 million in 2008, compared with 801,840 during 2007 & that trend will be far higher in this year.
More and more, individuals are facing increased financial pressures; which leads several sharp spike in every one areas of crime and litigious behavior patterns. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, these factors increase the chance that employees will steal from employers, or leave the company taking company assets or other sensitive information with them. Expect IP theft and identity theft to reach record highs in the arrival year, and take additional precautions to protect your business' most useful assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 and also 29,960 in 1st three quarters of 2008 (according on the American Bankruptcy Institute), with no signs 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 10 times the value of street crime losses annually in usa. The US banking industry reports losses of approximately $1billion annually may well above the combined losses considering bank robberies. American businesses lose close to 5 percent of annual revenues to fraud resulting in staggering losses of around $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 schools reported nearly 1 / 2 more data breaches last year when compared to 2007, exposing personalized records of to start 35.7 million Americans, according to the Identity Theft Resource Center of North park. Organized crime rings are expanding, using insider employees, and are to blame for much of this theft. The FBI states that employee theft is the fastest growing crime found today.
Businesses should your effects of prior employees as well as recently laid-off employee behaviors, in addition to some existing employees. retail outplacement Employers and managers often overlook their existing employees who the outwardly happy to have a job but inwardly feel they are owed more by the company for their loyalty, because their pay or options have been reduced, or simply because they often feel qualified to have more. The incidence of Workmans compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.