Salary Budget Planning Report 2023 Switzerland
Salary budgets for Swiss employees are expected to decline in 2024 after a pay rise peak in 2023. According to the latest Salary Budget Planning Survey by WTW, a leading global advisory, broking and solutions company, Swiss employers are budgeting an average increase of 2.8 % in 2024.
Inflationary pressure is the main driver influencing changes in salary budgets, cited by nearly three-quarters (69%) of Swiss employers surveyed, followed closely by concerns over a tighter labour market (47%). Other factors prompting changes to salary budgets include anticipated recession or weaker financial results (25%), concerns related to cost management (23%) and employee expectations (21%).
“While we are seeing slightly lower salary increases forecasted for next year, these are still well above the ones we’ve seen for the last 10 years.”
Nadine Balmer | Director, Work & Rewards (Switzerland)
“While we are seeing slightly lower salary increases forecasted for next year, these are still well above the ones we’ve seen for the last 10 years. This shows that companies are striving to stay competitive in a dynamic work climate” said Nadine Balmer, Director, Work & Rewards, WTW Switzerland. “Those companies that have a clear compensation strategy as well as a good understanding of the factors affecting it will be more successful when attracting and retaining employees while keeping pace with an evolving environment in which yesterday’s certainties no longer apply.”
According to the survey, attracting and retaining employees is still causing difficulties for 39% of employers (slightly lower than last year, 41%) but fewer (30%) expect the same difficulties next year.
In response to these ongoing pressures, organisations are taking action to attract and retain talent. Nearly a third (31%) have raised starting salaries and a similar proportion have embarked on a full compensation review for all employees. Additional measures that have been taken include higher base salary increases for all employees (31%) as well as compensation reviews for specific employee groups (33%).
Non-monetary actions to attract and retain talent are in motion, as well. More than half (58%) of respondents have introduced more workplace flexibility. Nearly as many (56%) have broadened their emphasis on DEI, while 39% of respondents have taken action to improve their employees’ experience.
“It takes more than compensation to attract and keep great talent, and the past few years have pressed companies to be more resourceful,” said Nadine. “As workforces become more diverse, demanding and dynamic, the key is understanding their specific needs and preferences while providing the desired employee experience and careers within the company.”
The Salary Budget Planning Report is compiled by WTW’s Reward Data Intelligence practice. The survey was conducted in April and May 2023. Approximately 33,000 sets of responses were received from companies across 150 countries worldwide. In Switzerland, 580 organisations responded.
