Managers fear that valuable employees will be lost
Since the beginning of the Corona crisis, there has been growing concern that highly qualified employees will not be able to stay with the company. In many places, salaries are frozen and bonuses are lower than before.
Due to the Corona crisis, companies are increasingly concerned about losing employees with valuable key skills. 86 % of executives worldwide are concerned about not being able to retain skilled and valuable employees for the long term. For more than a third of concerned employers (36 %), recent pay cuts or at least the lack of prospect of a pay rise in the near future are the cause. This is shown by the current labor market study of the personnel service provider Robert Half.
Salaries largely stable, but additional bonuses declining
"There is a lot of uncertainty in the labor market. Nevertheless, there is also good news," says Zerrin Azeri, associate director at Robert Half. "Salaries remain largely stable despite Corona. Many companies have also introduced new benefits, mainly to help their employees with remote work."
According to the new Salary overview 2021 of the personnel service provider for Switzerland, no changes will be made to salaries this year. Despite the economic crisis, bonuses will also be paid this year. For every second person (52 %), there will be no change in additional payments, according to the study. However, 38 % of respondents announce that bonus payments will be lower in 2020 than in the previous year.
Valuable employees are to be retained through additional benefits
These pandemic-induced cost-cutting measures are unsettling employers and employees alike. Almost half (41 %) of the companies surveyed fear that employees in key positions could be poached by other companies. "Employees are the most valuable asset of Swiss companies, both to cope with the crisis in the short term and to ensure long-term company growth," Azeri stresses. "Many employees have been pushed to their limits during the pandemic due to overtime and taking on more responsibility. They have become aware of this in recent months, so they are starting to rethink their personal career priorities."
Many companies are already responding to this development by offering additional benefits since the start of the corona crisis. These include allowances for office equipment, support in the area of mental health, additional leave or support in the area of external childcare.
Remote work has an impact on salary levels
Telecommuting and home office also affect salary levels. As more and more employees work from home, their location is increasingly influencing salary levels. According to Robert Half's labor market survey, starting salary is primarily based on the new employee's location (32 %) and 28 % on the company's. For 37 % of respondents, it is a mix of both locations. This is also visible in Switzerland.
"Despite the current job losses, Swiss companies will continue to hire new employees in 2021, as the impact is not felt equally across all industries. There is a great demand for new talent, especially in the finance, IT and office sectors," said Azeri. "It continues to be difficult for many companies to find the right people they need to support their business professionals. This includes accounting staff, IT analysts or customer service representatives. Professionals with in-demand skills know that you still have a good chance in the job market. That's why employers must continue to offer competitive salaries and benefits. It's the only way they can retain top candidates and continue to find them in the future."
"In addition, there is a significant shift in soft skills. Agility, creativity and communication have become more important as they demonstrate resilience and flexibility in employees. These skills are particularly valuable in these challenging times," Azeri adds.
Source and further information: Robert Half
