Tips on how to 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 after i was a VP of HR to order large national retail and mortgage bank account. 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 was a 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 ended. Once I finished managing the plant shut down, Next, i received my own severance package and exited the company to begin my own diamond ring HR consulting experience. I'd been offered the option within a transfer to another division or a severance package. Quite honestly, I didn't want to manage anymore RIFs even though I'd become a subject 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 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 to a sharp spike invested in areas of crime and litigious behavior. 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 the business taking company assets or other sensitive information with these people. Expect IP theft and identity theft to reach record highs in the coming year, and take additional precautions guard your business' most useful assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 in addition to 29,960 in the first three quarters of 2008 (according into the American Bankruptcy Institute), with no indications of slowing down in the near 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 ten times the value of street crime losses annually in the country. The US banking industry reports losses of well over $1billion annually in which well above the combined losses consequence bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses close to $638 billion (based on research from your Association of retail outplacement 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 50 % more data breaches last year as compared to 2007, exposing personalized records of to start 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 liable for much of this theft. The FBI states that employee theft is most effective growing crime found today.

Businesses should the actual 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 may be outwardly happy to take 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 for the reason that often feel qualified to receive 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.