This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry after i was a VP of HR to enjoy a large national retail and mortgage bank account. While working in this industry, I managed two separate selective reductions in force 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 after each workday how many employees I'd fired. Once I finished managing the retail outplacement plant shut down, Next, i received my own severance package and exited the company to begin my own 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 even though I'd become a subject matter expert, of course 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 at least.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 any sharp spike invested in areas of crime and litigious behavior. 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 the group. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions preserve your business' most valuable assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 and over 29,960 in 1st three quarters of 2008 (according towards the American Bankruptcy Institute), with no symptoms 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 significantly the value of street crime losses annually in usa. The US banking industry reports losses of approximately $1billion annually which is well above the combined losses considering bank robberies. American businesses lose an estimated 5 percent of annual revenues to fraud resulting in staggering losses of around $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 % more data breaches last year than in 2007, exposing personalized records of at least 35.7 million Americans, according to the Identity Theft Resource Center of The san diego area. Organized crime rings are expanding, using insider employees, and are responsible for much of this theft. The FBI states that employee theft is speediest growing crime in america today.
Businesses should the particular 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 in a position to 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 for the reason that often feel qualified to have more. The incidence of Work comp claims are already increasing and incidents of petty theft internally within companies is at an all-time high.