Only a week before the Lehman Brothers and Merrill Lynch implosion, Robert Half International of Stamford released its financial hiring index, forecasting the increase in hiring of accounting and finance professionals in the final months of this year. Now many professionals need for the company”™s employment prediction to hold true.
The Business Council of Fairfield County reports more than 39,000 people are employed at nearly 3,000 establishments in the finance and insurance industry in the county.
According to Peter Gioia, an economist and vice president at the Connecticut Business & Industry Association, the damage to the market that will be faced by families of Lehman employees will undoubtedly creep into local economies. He says those connected to the Lehman and Merrill Lynch devastation will be trying to save money while searching for new jobs and therefore not pumping the money back into the economy. This may compound woes in markets in Westchester, N.Y., and Fairfield counties.
Richard Fuld, the former long-term CEO of Lehman Brothers, is a resident of Greenwich.
UBS of Stamford suffered direct stock losses from its exposure to Lehman.
According to Ronald J. Gentile, CEO of USA Bank in Port Chester, N.Y., suburban job losses are unlikely to remain contained to the financial sector, and he expects less borrowing in the region.
“In the New England region, financial analysts are needed to help firms identify further operating efficiencies,” said Max Messmer, chairman and CEO of Robert Half International. Â
Messmer continued that businesses need a strong financial function to see them through all economic cycles.According to the Robert Half index, 7 percent of chief financial officers in the region anticipated adding full-time accounting and finance professionals.
“It affects the job pool, in that both the job-search firms,and companies are going to have sheer numbers and volume of resumes to go through,” said Michael Koren president and CEO of Koren, Rogers Associates Inc. in White Plains, N.Y.
Koren said that specific hires, specific skill sets and directors and executives are going to continue to be sought after, while those only entering the financing field may be too cheap to be cut.
“The labor”™s too cheap,” said Koren. “I do think the college grads that got hired probably won”™t be let go.”
Koren says it”™s those in mid-level management making $80,000 plus who should be most concerned. Koren points out that those recently out of college cost a third in salary what mid-level managers cost and companies trying to save some money may consider hiring younger professionals with salaries that aren”™t as mature.
“Those are the guys (mid-level managers) who are going to get cut,” said Koren. “Though I wouldn”™t want to be a recent college grad right now, the good news is they are low priced. We”™ve been through this in our industry. What I think is really unprecedented is that we”™re going through  9/11, the dot-com bust and now this in a relatively short amount of time. We”™ve barely recovered from them, but make no mistake, we”™re recovering and we are hiring right now.”
Koren said the hiring practices of the finance and accounting industries are a simple fact of supply increasing with demand remaining the same. According to Koren, those on the job hunt are going to have to be exceptionally diligent in their searches and should utilize follow-up calls and look to recommendations for a boost back into the industry. Koren warns against getting lost in the fervor and flurry of resumes that will fill the industry in the next month.
“Companies are going to continue to have to look long and hard to find the key position,” said Koren. “Guys like Robert Half will be competing with clients telling them they”™ve got a thousand resumes. But what company”™s going to go all these resumes? That”™s where they”™re going to need Robert Half.”