Companies being forced to cut back by recession is leading to an increase in conflict in the workplace, an expert said yesterday.

International management and organisational development guru Paul Loftus said: “The concern with conflict is that it’s using up a lot of time.

“Research is telling us managers are spending up to 25 percent of their time dealing with conflict — and that takes away energy from more productive work for the organisation.”

He added: “We are seeing that here in Bermuda right now — there is cost-cutting and where there is cost-cutting, there is conflict.

“Conflict causes a decrease in productivity, which affects the bottom line and that’s a problem.”

Montreal-based Mr Loftus — in Bermuda to conduct seminars in stress management and conflict resolution for top firms — said that conflict was often the result of poor communication.

He added: “When you look at situations around the world, political situations, there is a compromise rather than redefining the whole issue.

“If you look at what’s happening in the US, the amount of time wasted on the debt ceiling is time that could be used much more productively.”

He added: “Collaborating takes a lot of work and a lot of time, but it’s usually the ideal solution.”

Mr Loftus said that his job was “about helping people to develop more in the workplace and about how organisations can work more effectively.”

He added: “Mediation has become a big thing now — a lot of people are trying to avoid the legal process — and people in conflict have a lot more in common that they realise.

“One of the greatest resolutions for conflict is common goals — let’s see how we can work better together while achieving these goals.”

Irish-born Mr Loftus is an industrial psychologist who also has a background in the banking and insurance industries.

He said: “Bermuda now has much more competition — you have got the Caymans and Barbados getting into the act, as well as places like Luxembourg, Dublin and the Isle of Man.

“There have been a lot of layoffs over the past few years — this has hurt and it’s still hurting. The recession started later in Bermuda than in a lot of places, but it’s here and it’s lingering.

“Workers realise an organisation has to make a profit. If it doesn’t, it goes out of business and people are out of work.”

Mr Loftus added: “The recession has had an affect and there has been a lot of hardship and a lot of pain. You see a lot of heartbreak when someone has to lay off someone else.”

But he added that Bermuda’s skilled and educated workforce was a major selling point for the Island.

Mr Loftus said: “The standard of education here has gone sky high — Bermuda can attract businesses that need educated people.

“And the most valuable resources in a country are the human resources. It’s a wise way to spend money.

“There is a very high standard here. Bermuda has very educated people and one thing you find is that people are willing to learn and working to upgrade their skills. As long as that attitude continues, it bodes well.”

He added that winter tourism — particularly targeted at Canada and America — was another way to boost income on the island.

He said: “You’re not talking about beach weather, but you can play golf — it’s about getting away from the intense cold.”