The good news: Salaries are set to increase by an average of 1.4% in the coming year, surpassing the average growth rate of the past decade. The bad news: The financial sector, including banks and insurers, is not among the biggest winners.

According to UBS's annual salary survey, the highest wage increases of 2% will be seen in the IT and telecommunications sector, as well as in energy, utilities, and waste management industries. Employees in the chemical and pharmaceutical industries can also expect above-average raises of 1.7%.

For banks and insurers, UBS's survey indicates an increase of 1.5%, following a 1.8% rise in salaries in these sectors last year.

Disappointment Is Inevitable

This assessment is echoed by Jonas Neff from the Zurich-based headhunter BiermannNeff. «Many bankers will be disappointed. A substantial salary increase is unlikely,» he says, citing discussions with various players in the financial market. «This is not a time for significant pay hikes. Most institutions are focusing on consolidation,» he adds.

The Credit Suisse Effect Has Fizzled Out

Even switching jobs no longer guarantees significant salary increases. Exceptions still exist, of course, but, as Neff points out, «The first major wave of job changes following the collapse of Credit Suisse is behind us. Those who moved on from Credit Suisse earlier have had no regrets.» However, for those now considering resigning or facing layoffs, the outlook is tougher. «Many of them will have to settle for lower salaries,» Neff notes.

The banking sector’s cautious approach is not entirely surprising. Banks are feeling the impact of falling interest rates, which was evident during the presentation of half-year results. Many private banks reported significantly lower revenues.