Ways to Compassionately Manage RIFs and minimize Litigation

This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry when i was a VP of HR to get 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 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 at the conclusion of each workday just how many employees I'd baulked. Once I finished managing the plant shut down, Then i received my own severance package and exited the company to begin my very HR consulting clinic. 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 although I'd become individual 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 & 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 the year just gone.

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 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 arrival year, and take additional precautions safeguard your business' most worthy assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 and over 29,960 in the most important three quarters of 2008 (according on the American Bankruptcy Institute), with no signs 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 significantly the value of street crime losses annually in the us. 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 an estimated 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 educational facilities reported nearly 50 % more data breaches last year as compared to 2007, exposing personalized records of a 35.7 million Americans, according to retail outplacement the Identity Theft Resource Center of San diego. Organized crime rings are expanding, using insider employees, and are responsible for much of this theft. The FBI states that employee theft is the fastest growing crime found today.

Businesses should find the 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 to experience job but inwardly feel they are owed more by the company for their loyalty, because their pay or options have been reduced, or simply mainly because they often feel entitled 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.