Tips to Compassionately Manage RIFs and reduce Litigation

This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry as i was a VP of HR for a 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 would be a difficult time for me and for my employees. My husband called me "the black widow" then, asking me following each workday what number of 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 individual 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 despite the fact that I'd become a theme matter expert, it truly 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 Bankruptcy Institute reports that consumer bankruptcy filings rose to at least.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 any sharp spike carry out areas of crime and litigious attitude. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, these factors increase the chance that employees will steal from employers, or leave the business taking company assets or other sensitive information with persons. Expect IP theft and identity theft to reach record highs in the coming 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 along with 29,960 in the first three quarters of 2008 (according towards American Bankruptcy Institute), with no indications 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 10 times the value of street crime losses annually in usa. The US banking industry reports losses of that could reach over $1billion annually could be well above the combined losses due to bank robberies. American businesses lose about 5 percent of retail outplacement annual revenues to fraud resulting in staggering losses of around $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 schools reported nearly 50 % more data breaches last year compared with 2007, exposing the personal 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 to blame for much of this theft. The FBI states that employee theft is mirror growing crime found today.

Businesses should consider the 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 possibly be outwardly happy to have a 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 permitted 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.