This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry once i was a VP of HR to order 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 the difficult time for me personally and for my employees. My husband called me "the black widow" then, asking me after each workday just how many employees I'd over. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin individual HR consulting clinic. I'd been offered the option of 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 subject matter expert, so 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 retail outplacement areas 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 company taking company assets or other sensitive information with the group. Expect IP theft and identity theft to reach record highs in the arrival year, and take additional precautions to guard your business' most valuable assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 furthermore 29,960 in extremely first three quarters of 2008 (according on the American Bankruptcy Institute), with no indication 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 far the value of street crime losses annually in the usa. The US banking industry reports losses of that has reached over $1billion annually could be well above the combined losses from bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses about $638 billion (based on research by 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 50 percent more data breaches last year compared to 2007, exposing personalized 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 in charge of much of this theft. The FBI states that employee theft is speediest growing crime in america today.
Businesses should the actual effects of prior employees as well as recently laid-off employee behaviors, additionally existing employees. Employers and managers often overlook their existing employees who end up being outwardly happy to have a job but inwardly feel they are owed more through company for their loyalty, because their pay or options have been reduced, or simply mainly because they often feel eligible for have more. The incidence of Workers comp claims are already increasing and incidents of petty theft internally within companies is at an all-time high.