This week's troubles on Wall Street make me reflect upon an earlier downturn in the 90's in the financial services industry while i was a VP of HR to enjoy 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 the difficult time for me personally and for my employees. My husband called me "the black widow" then, asking me after each workday what number of employees I'd fired. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin my own diamond ring 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 even though I'd become individual 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 just 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 carry out areas of crime and litigious behaviors. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, these factors increase 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 next year, and take additional precautions preserve your business' most useful assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 and over 29,960 in your first three quarters of 2008 (according to the American Bankruptcy Institute), with no indications of slowing down before long. 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 ten times the value of street crime losses annually in north america. The US banking industry reports losses of in excess of $1billion annually which is well above the combined losses consequence 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 universities reported nearly 1 / 2 more data breaches last year than in 2007, exposing the private records of a 35.7 million Americans, according to the Identity Theft Resource Center of Hillcrest. Organized crime rings retail outplacement are expanding, using insider employees, and are responsible for much of this theft. The FBI states that employee theft is the fastest growing crime in america today.
Businesses should the actual effects of prior employees as well as recently laid-off employee behaviors, in addition to existing employees. Employers and managers often overlook their existing employees who may be outwardly happy to take a 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 Workers compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.