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 while i was a VP of HR to acquire a large national retail and mortgage establishment. 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 after each workday what number of employees I'd terminated. Once I finished managing the plant shut down, Then i received my own severance package and exited the company to begin my own HR consulting prepare. I'd been offered the option of a transfer to another division or a severance package. Quite honestly, I didn't want to manage anymore RIFs despite the fact that retail outplacement I'd become a subject matter expert, so i opted for the severance package.

As the economy tightens, overall criminal activities increase drastically. 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 '09.

More and more, individuals are facing increased financial pressures; which leads in order to some sharp spike in all areas of crime and litigious behavior patterns. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus much more interpersonal stress, problem of the increase the chance that employees will steal from employers, or leave the company taking company assets or other sensitive information with persons. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions to protect your business' most precious assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 along with 29,960 in the most important three quarters of 2008 (according towards American Bankruptcy Institute), with no signs of slowing down anytime 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 10 times the value of street crime losses annually in the us. The US banking industry reports losses of in excess of $1billion annually could be well above the combined losses considering bank robberies. American businesses lose close to 5 percent of annual revenues to fraud resulting in staggering losses close to $638 billion (based on research via 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 half more data breaches last year compared with 2007, exposing the private records of at least 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 in charge of much of this theft. The FBI states that employee theft is speediest growing crime in america 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 switching job but inwardly feel they are owed more from company for their loyalty, because their pay or options have been reduced, or simply as they quite simply often feel qualified to have more. The incidence of Workers compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.