Ideas for Compassionately Manage RIFs and reduce Litigation

Sep 06, 2017

This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry after i was a VP of HR for a large national retail and mortgage commercial bank. 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 was a difficult time for me personally and for my employees. My husband called me "the black widow" then, asking me after each workday just how many employees I'd terminated. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin my very HR consulting prepare. I'd been offered the option in regards to retail outplacement a transfer to another division or a severance package. Quite honestly, I didn't want to manage anymore RIFs even though I'd become person matter expert, then i 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 1.06 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 to a sharp spike in every one areas of crime and litigious demeanor. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and more interpersonal stress, problem of the increase the chance that employees will steal from employers, or leave the business taking company assets or other sensitive information with these products. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions to protect your business' most valuable assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 along with 29,960 in 1st three quarters of 2008 (according to the American Bankruptcy Institute), with no signs and symptoms 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 significantly the value of street crime losses annually in the usa. The US banking industry reports losses of approximately $1billion annually along with that is well above the combined losses from bank robberies. American businesses lose around 5 percent of annual revenues to fraud resulting in staggering losses of around $638 billion (based on research coming from 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 universities reported nearly one half more data breaches last year when compared to 2007, exposing the personal records of at least 35.7 million Americans, according to the Identity Theft Resource Center of San diego, ca. Organized crime rings are expanding, using insider employees, and are liable for much of this theft. The FBI states that employee theft is mirror growing crime found today.

Businesses should find the effects of prior employees as well as recently laid-off employee behaviors, additionally 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 through company for their loyalty, because their pay or options have been reduced, or simply for the reason that often feel eligible for 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.