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 order large national retail and mortgage bank account. 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 following each workday just how many employees I'd fired. Once I finished managing the plant shut down, When i received my own severance package and exited the company to begin my own diamond ring HR consulting prepare. 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 an issue matter expert, it truly opted for the severance package.
As the economy tightens, overall criminal activities increase hugely. This includes every type of crime from theft retail outplacement & 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 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 behavior. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus more ! interpersonal stress, problem of the increase the chance that employees will steal from employers, or leave company taking company assets or other sensitive information with them. Expect IP theft and identity theft to reach record highs in the coming year, and take additional precautions to protect 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 extremely first three quarters of 2008 (according on 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 significantly the value of street crime losses annually in the us. The US banking industry reports losses of well over $1billion annually could be well above the combined losses consequence bank robberies. American businesses lose around 5 percent of annual revenues to fraud resulting in staggering losses about $638 billion (based on research by 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 50 percent more data breaches last year when compared to 2007, exposing the private records of a 35.7 million Americans, according to the Identity Theft Resource Center of San diego, ca. 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 found today.
Businesses should the actual effects of prior employees as well as recently laid-off employee behaviors, in addition to some existing employees. Employers and managers often overlook their existing employees who end up being 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 because they often feel eligible for 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.