Independence debate causes new companies to reconsider job hiring
Just as Bermuda's leaders are beginning to see success in their efforts to attract more international business, there's evidence that some of the new companies are uneasy about their future on the Island.
The Royal Gazette has learned that the hiring boom that was expected as a result of the influx of new companies has been stymied by a quiet fear among some top executives over the Island's public discussion of the Independence issue.
One source told The Gazette : "They have a lot of money invested already in coming here. Some will now hold on, to find out which way Bermuda will go.
"They don't want to commit themselves to training people, and taking them from other jobs which are more secure, when they may have to suddenly decide they will not stay.
"They are concerned enough not to commit themselves and possibly cause a problem for themselves and the people they employ.'' But since the companies need a labour force, they have instead sought out temporary employees.
There has been a jump in the need for "temps'' and not enough Bermudians are available to fill the demand. More than one employment agency is looking to recruit overseas.
Mr. Jeremy Whittle of Professional Consultants said that the recession had hit the job market harder than some people realised. And he admitted: "We can hardly keep up with the demand for temps. Companies are looking for secretaries, book-keepers and those in other professions, like accountants. We have three times as many temps out this week than we did in the corresponding week two years ago.'' Mr. Whittle said that he knew there were overseas companies who were seeking temporary help instead of full-time labour until they could determine where the talks on Independence would lead. "Companies are no longer as worried about the financial situation. Now, they are worried about the Independence talk. Considering their investment, I can't blame them.'' The new twist in the employment picture comes as just released Government figures show that the labour pool last year shrunk to its lowest level in seven years. The 1993 Economic Review, released by the Finance Minister on Budget Day, showed that the total number of jobs has diminished annually, starting in 1987.
But there was a quiet optimism that the flood of investment, insurance and trust companies would mean a revitalisation of the jobs market that would bring direct benefits to Bermudians.
Paul Card of SOS Limited said: "We are trying to use as many local people as possible. There is some movement in permanent jobs, but the good sign has come from the increase in the need for temporary labour.'' In banking, there is a serious need for qualified expertise. Personnel Manager at the Bank of Bermuda, Mr. Mark Perreault, said: "Automation has meant less and less clerical workers. We're finding a lack of people who have basic financial backgrounds. We have a huge need for accountants in specialised areas, like sophisticated mutual funds.
"We have seen some of our junior and younger people moving over to some of the newer companies like Ace, Excel and Centre Re, and some of the new trust companies. We need to replace them.'' The bank's president, Mr. Donald Lines, said employment growth would be closely linked to growth in the bank's international business.
"Over the year we expect to be adding another 50 positions locally and going from 150 to possibly 330 in Hong Kong. We should go from 40 jobs in Singapore to about 50 jobs there.'' Trimingham Brothers president, Mr. Eldon Trimingham said there was a feeling that the northeast of the United States could bounce back. "There have been some improvements in tourism. People are thinking that we could be looking at the beginning of a turn-around. Without a question, business people are preparing for an improvement.'' A glance at this newspaper's employment advertising shows revealing comparisons. A survey of the number of column inches of advertising space purchased by businesses seeking help in the first week of February reveals that this year is the best in the past five years.
Employers are looking to do more hiring than they have since 1990, during which time a recessionary economy led to a freeze on job offers in many categories.
Ms Carol Carvalho of Execu-Temps said that the employment business over the last three years had been "the worst industry to be in''. She agreed that there had been a significant increase in people looking for temporary workers.
Although unaware of concerns from international companies on the Independence issue, she remarked on two other trends.
"While the employment business has been bad, there has been a lot of people looking for nannies. It was somewhat surprising considering the economy, but the nanny business has been crazy.
"The other thing I've noticed is that I've heard from a lot of secretaries, who are now with local or international companies, who are looking around.
They are expecting that the new companies will pay well.
"And right now there is a terrible lack of legal secretaries, because many wish to move away from law offices. They don't mind being a secretary, but want out of what they are doing.
"We're getting calls from law firms every week.'' Mr. Jeremy Whittle.