This week's troubles on Wall Street make me reflect upon an earlier downturn in the 90's in the financial services industry when i was a VP of HR to get a large national retail and mortgage 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 any difficult time for me personally and for my employees. My husband called me "the black widow" then, asking me following each workday just how many employees I'd baulked. Once I finished managing the plant shut down, When i received my own severance package and exited the company to begin my own HR consulting prepare. I'd been offered the option within 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 individual matter expert, so i opted for the severance package.
As the economy tightens, overall criminal activities increase radically. 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 a single.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 to be able to sharp spike in all areas of crime and litigious behaviors. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus more ! interpersonal stress, these factors increase the chance that employees will steal from employers, or leave the company taking company assets or other sensitive information with them. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions to protect your business' most precious 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 towards the American Bankruptcy Institute), with no indication 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 far the value of street crime losses annually in the usa. The US banking industry reports losses of well over $1billion annually which is well above the combined losses due to bank robberies. American businesses lose around 5 percent of annual revenues to fraud resulting in staggering losses about $638 billion (based on research via 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 50 percent more data breaches last year than in 2007, exposing personalized records of quite 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 mirror growing crime found today.
Businesses should the particular effects of prior employees as well as retail outplacement recently laid-off employee behaviors, additionally existing employees. Employers and managers often overlook their existing employees who in a position to outwardly happy switching job but inwardly feel they are owed more in the company for their loyalty, because their pay or options have been reduced, or simply as they quite simply often feel entitled to 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.