Tips on how 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 after i was a VP of HR to acquire a large national retail and mortgage bank. 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 any difficult time for me personally and for my employees. My husband called me "the black widow" then, asking me following each workday what number of employees I'd over. Once I finished managing the plant shut down, When i received my own severance package and exited the company to begin my very HR consulting utilize. 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 although I'd become a subject matter expert, so that 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 at least.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 attitude. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and more interpersonal stress, elements 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 next year, and take additional precautions preserve your business' most worthy assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 furthermore 29,960 in the first three quarters of 2008 (according towards American Bankruptcy Institute), with no signs and symptoms of slowing down in the 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 that has reached over $1billion annually which is well above the combined losses since bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering retail outplacement losses close to $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 50 % more data breaches last year than in 2007, exposing individual records of at least 35.7 million Americans, according to the Identity Theft Resource Center of Hillcrest. Organized crime rings are expanding, using insider employees, and are the boss of much of this theft. The FBI states that employee theft is the fastest growing crime found today.

Businesses should your 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 the outwardly happy to take a 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 permitted to have more. The incidence of Workers comp claims are already increasing and incidents of petty theft internally within companies is at an all-time high.