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 save. 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 was 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 how many employees I'd ended. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin my own ring HR consulting clinic. 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 although I'd become person matter expert, of course 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 just one.06 million in 2008, compared with 801,840 during 2007 & that trend will be far higher in 2009.
More and more, individuals are facing increased financial pressures; which leads several sharp spike carry out areas of crime and litigious demeanor. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, elements increase retail outplacement the chance that employees will steal from employers, or leave corporation taking company assets or other sensitive information with these products. Expect IP theft and identity theft to reach record highs in the coming year, and take additional precautions safeguard your business' most valuable assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 along with 29,960 in your first three quarters of 2008 (according into 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 significantly the value of street crime losses annually in the country. The US banking industry reports losses of approximately $1billion annually along with that is 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 from your 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 half more data breaches last year compared with 2007, exposing the personal records of at least 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 best growing crime found today.
Businesses should the particular 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 in a position to outwardly happy to take a job but inwardly feel they are owed more through company for their loyalty, because their pay or options have been reduced, or simply because they often feel permitted 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.