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 get a large national retail and mortgage establishment. While working in this industry, I managed two separate selective reductions in effect 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 after each workday just how many employees I'd fired. Once I finished managing the plant shut down, When i received my own severance package and exited the company to begin my own ring HR consulting prepare. 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 although I'd become a theme matter expert, so that 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 1.06 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 several sharp spike carry out areas of crime and litigious behavior patterns. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and more interpersonal stress, these factors increase the chance that employees will steal from employers, or leave company taking company assets or other sensitive information with these people. Expect IP theft and identity theft to reach record highs in the approaching 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 in addition to 29,960 in 1st three quarters of 2008 (according into the American Bankruptcy Institute), with no symptoms 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 much the value of street crime losses annually in the country. The US banking industry reports losses of well over $1billion annually could be well above the combined losses considering bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses about $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 institutions reported nearly half more data breaches last year compared to 2007, exposing the personal records of at least 35.7 million Americans, according to the Identity Theft Resource Center of Hillcrest. Organized crime rings are expanding, using insider retail outplacement employees, and are responsible 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, electronic files . existing employees. Employers and managers often overlook their existing employees who the outwardly happy to experience job but inwardly feel they are owed more from company for their loyalty, because their pay or options have been reduced, or simply because they often feel eligible for 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.