This week's troubles on Wall Street make me reflect upon an earlier downturn in the 90's in the financial services industry once i was a VP of HR to acquire a large national retail and mortgage commercial bank. While working in this industry, I managed two separate selective reductions in place 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 how many employees I'd over. Once I finished managing the plant shut down, Then i received my own severance package and exited the company to begin my own HR consulting clinic. I'd been offered the option in regards to 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 i opted for the severance package.
As the economy tightens, overall criminal activities increase dramatically. 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 this year.
More and more, individuals are facing increased financial pressures; which leads several sharp spike carry out areas retail outplacement of crime and litigious behavior patterns. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and better interpersonal stress, elements increase the chance that employees will steal from employers, or leave the business taking company assets or other sensitive information with these people. Expect IP theft and identity theft to reach record highs in next year, and take additional precautions preserve your business' most precious assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 in addition to 29,960 in extremely first three quarters of 2008 (according into the American Bankruptcy Institute), with no signs of slowing down anytime soon. 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 the us. The US banking industry reports losses of approximately $1billion annually along with that is well above the combined losses consequence bank robberies. American businesses lose close to 5 percent of annual revenues to fraud resulting in staggering losses close to $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 institutions reported nearly half more data breaches last year when 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 to blame for much of this theft. The FBI states that employee theft is most effective growing crime found today.
Businesses should the actual 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 end up being outwardly happy for optimal job but inwardly feel they are owed more by the company for their loyalty, because their pay or options have been reduced, or simply for the reason that often feel qualified to receive 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.