Budget constraints and rising expectations push employers to change in 2025

The 2025 Robert Walters Salary Survey reveals that organisations are experiencing increasing challenges in talent management. Tight budgets, higher employee expectations and growing retention issues are putting pressure on the labour market. Özlem Simsek, Managing Director at global talent solutions specialist Robert Walters, shares her insights.

More junior professionals due to budget constraints

One in three Swiss employers surveyed is considering replacing experienced employees who voluntarily leave with junior professionals, primarily due to budget constraints. Özlem Simsek explains: “Many organisations will likely need to get more creative with their budgets in 2025. Attracting and training junior talent can not only save costs but also be a sustainable investment in the future. Additionally, leveraging temporary staff can provide a flexible solution to budgetary challenges.”

Rise in rejected job offers

32% of employers in Switzerland saw an increase in rejected job offers over the past year. The main reasons for this are:

• Acceptance of a counter-offer (42%)
• Not meeting salary expectations (33%)
• Decision to stay with the current employer (29%)
• Insufficient work-life balance (17%)
   

Applicants are looking beyond just salary. They want an attractive total package, including career opportunities, a strong team culture, and work-life balance. Employers who fail to address these priorities risk losing talent.

To prevent job offer rejections, it’s essential to address candidates’ priorities during the interview process.

"Listen to what they consider important and respond accordingly. Emphasize the existing benefits of flexible working conditions, opportunities for personal development, and a clearly defined career path. In addition, speed is critical in a competitive job market. Make sure a strong offer is presented quickly, so candidates are less inclined to consider better opportunities elsewhere,” advises Özlem.

Replacements lag when leaving

60% of professionals surveyed indicated that departing colleagues are not always replaced. In fact, this happened regularly at four in ten organisations. The primary reasons for this include:

• Budget constraints or cost-saving measures (37%)
• Restructuring or downsizing (33%)
• Confidence in the capacity of the existing team (13%)
• Lack of available talent to replace them (7%)
   

What does this mean for 2025?

Employers face the significant challenge of managing costs, attracting talent, and retaining employees. Transparent communication, flexible working conditions, and a strong work culture are essential in this respect. “In 2025, everything is about balance. Employers who invest in a culture where employees feel heard and supported will be better positioned in the war for talent. Organisations that embrace this approach will be better equipped to adapt to the challenges of a changing labor market,” concludes Özlem.

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