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 for a large national retail and mortgage bank. 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 any 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 just how many employees I'd baulked. Once I finished managing the plant shut down, Then i received my own severance package and exited the company to begin my very HR consulting utilize. 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 a theme matter expert, so that 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 '09.
More and more, individuals are facing increased financial pressures; which leads to be able to sharp spike in every one areas of crime and litigious demeanor. 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 the business taking company assets or other sensitive information with them. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions safeguard your business' most precious assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 and over 29,960 in extremely first three quarters of 2008 (according on the retail outplacement American Bankruptcy Institute), with no signs of slowing down in the 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 north america. The US banking industry reports losses of that could reach over $1billion annually may well above the combined losses due to bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses about $638 billion (based on research coming from 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 one half more data breaches last year compared to 2007, exposing personalized records of not less than 35.7 million Americans, according to the Identity Theft Resource Center of North park. Organized crime rings are expanding, using insider employees, and are liable for much of this theft. The FBI states that employee theft is best growing crime found today.
Businesses should your effects of prior employees as well as recently laid-off employee behaviors, aside from existing employees. Employers and managers often overlook their existing employees who end up being outwardly happy switching job but inwardly feel they are owed more in the company for their loyalty, because their pay or options have been reduced, or simply mainly because they often feel qualified to receive have more. The incidence of Workman's compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.