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 establishment. 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 any difficult time for me and for my employees. My husband called me "the black widow" then, asking me at the conclusion of 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 HR consulting prepare. 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 an issue matter expert, it truly 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 a single.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 attitude. 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 taking company assets or other sensitive information with these people. 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 furthermore 29,960 in 1st three quarters of 2008 (according towards the American Bankruptcy Institute), with no 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 country. The US banking industry reports losses of that could reach over $1billion annually in which well above the combined losses since bank robberies. American businesses lose around 5 percent of annual revenues to fraud resulting in staggering losses close to $638 billion (based on research from your 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 institutions reported nearly 1 / 2 more data breaches last year as compared to 2007, exposing the personal records of a 35.7 million Americans, according to the Identity Theft Resource Center of Hillcrest. 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 in america today.
Businesses should the actual 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 for optimal job but inwardly feel they are owed more by the company for their loyalty, because their pay or options have been reduced, or simply considering that they often feel entitled to have more. The incidence of Workmans compensation claims are already increasing and retail outplacement incidents of petty theft internally within companies is at an all-time high.