This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry once i was a VP of HR for 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 was a difficult time for me and for my employees. My husband called me "the black widow" then, asking me at the end of each workday how many employees I'd terminated. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin my own HR consulting utilize. I'd been offered the option for the 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 an issue matter expert, then 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 2009.
More and more, individuals are facing increased financial pressures; which leads in order to some sharp spike in all areas of crime and litigious demeanor. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, elements increase the chance that employees will steal from employers, or leave company 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 safeguard 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 the first three quarters of 2008 (according on the American Bankruptcy Institute), with no signs and symptoms of slowing down soon. 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 retail outplacement north america. The US banking industry reports losses of that has reached over $1billion annually which is well above the combined losses since bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses of around $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 educational institutions reported nearly one half more data breaches last year compared to 2007, exposing the non-public records of not less than 35.7 million Americans, according to the Identity Theft Resource Center of San diego. Organized crime rings are expanding, using insider employees, and are liable for much of this theft. The FBI states that employee theft is best growing crime in america today.
Businesses should consider the effects of prior employees as well as recently laid-off employee behaviors, additionally existing employees. Employers and managers often overlook their existing employees who end up being outwardly happy to experience job but inwardly feel they are owed more through company for their loyalty, because their pay or options have been reduced, or simply as they quite simply often feel permitted to have more. The incidence of Workman's compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.