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 order large national retail and mortgage commercial bank. 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 would be a difficult time for me personally and for my employees. My husband called me "the black widow" then, asking me following each workday how many employees I'd fired. Once I finished managing the plant shut down, Next, i received my own severance package and exited the company to begin my very HR consulting experience. 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 dramatically. This includes every type of crime from theft & embezzlement to workplace violence and corporate espionage. The American retail outplacement 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 the year just gone.
More and more, individuals are facing increased financial pressures; which leads to be able to sharp spike in a variety of areas of crime and litigious behaviors. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and more interpersonal stress, elements increase the chance that employees will steal from employers, or leave corporation taking company assets or other sensitive information with them. Expect IP theft and identity theft to reach record highs in the arrival year, and take additional precautions guard your business' most valuable assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 furthermore 29,960 in your first three quarters of 2008 (according to the American Bankruptcy Institute), with no signs and symptoms of slowing down in the 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 usa. The US banking industry reports losses of that could reach over $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 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 schools reported nearly half 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 San diego. Organized crime rings are expanding, using insider employees, and are the boss of much of this theft. The FBI states that employee theft is speediest growing crime in america today.
Businesses should find the 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 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 mainly because they often feel entitled to have more. The incidence of Workers comp claims are already increasing and incidents of petty theft internally within companies is at an all-time high.