Tips to Compassionately Manage RIFs and minimize 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 order large national retail and mortgage commercial bank. While working in this industry, I managed two separate selective reductions in effect affecting about 85 employees, plus a retail outplacement plant shut down of approximately 330 employees.

Certainly it any difficult time for me and for my employees. My husband called me "the black widow" then, asking me after each workday just how many employees I'd over. Once I finished managing the plant shut down, I then received my own severance package and exited the company to begin individual HR consulting practice. I'd been offered the option of something like 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, then i opted for the severance package.

As the economy tightens, overall criminal activities increase radically. 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 one.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 be able to sharp spike carry out areas of crime and litigious behaviors. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus more ! interpersonal stress, problem of the increase the chance that employees will steal from employers, or leave corporation taking company assets or other sensitive information with persons. Expect IP theft and identity theft to reach record highs in next year, and take additional precautions safeguard your business' most precious assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 and over 29,960 in the first three quarters of 2008 (according into the American Bankruptcy Institute), with no 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 10 times the value of street crime losses annually in the us. The US banking industry reports losses of well over $1billion annually may well above the combined losses consequence bank robberies. American businesses lose close to 5 percent of annual revenues to fraud resulting in staggering losses of around $638 billion (based on research via 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 50 % more data breaches last year than in 2007, exposing individual records of a 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 the fastest 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 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 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.