Ideas for Compassionately Manage RIFs and reduce Litigation

This week's troubles on Wall Street make me reflect upon an earlier downturn in the 90's in the financial services industry as i was a VP of HR to acquire a large national retail and mortgage save. While working in this industry, I managed two separate selective reductions in force affecting about 85 employees, plus a retail outplacement plant shut down of approximately 330 employees.

Certainly it any 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 ended. Once I finished managing the plant shut down, Next, i received my own severance package and exited the company to begin individual HR consulting utilize. 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 although I'd become an issue matter expert, so 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 this year.

More and more, individuals are facing increased financial pressures; which leads to be able to sharp spike carry out areas of crime and litigious behaviors. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and 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 them. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions safeguard your business' most dear assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 furthermore 29,960 in the first three quarters of 2008 (according towards the American Bankruptcy Institute), with no signs and 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 far the value of street crime losses annually in the usa. The US banking industry reports losses of that has reached over $1billion annually in which well above the combined losses due to bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses about $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 1 / 2 more data breaches last year compared to 2007, exposing the personal records of quite 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 to blame for much of this theft. The FBI states that employee theft is most effective growing crime in america today.

Businesses should find the effects of prior employees as well as recently laid-off employee behaviors, in addition to existing employees. Employers and managers often overlook their existing employees who possibly be outwardly happy for optimal job but inwardly feel they are owed more from company for their loyalty, because their pay or options have been reduced, or simply considering that they often feel qualified to receive have more. The incidence of Workers compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.
2017-09-06 / Posted in