Thousands of jobs will be eliminated in Swiss banking in the coming months. The middle management is under particular pressure. A lot of bankers are taking cover in a bid to keep their names of the blacklists. That's a dangerous tactic.
The fear for the job felt by many bankers collides with a sense of departure to new pastures of the entire industry – this tension is tangible at most Swiss banks today. Departure to a new life, a future designed to cope with the demise of banking secrecy, tougher regulations and the breakneck speed of technological change.
Change inevitably seems to demand sacrifices, and in the banking industry the sacrifice tends to be a job lost. When banks (are forced to) give up business opportunities or reduce their fixed costs, thousands of jobs are lost. In the coming six months alone, some 5,000 bankers will see their jobs disappear, «NZZ am Sonntag» (by subscription only) reported on Sunday.
First Out - the Middle Management
The middle management will carry a disproportionate part of the burden. A lot of these employees have been with their companies for years, keep the wheels turning and receive a compensation reflecting their position. With margins dropping, banks have to trim their costs – an the people with the good wages get in the line of fire first.
«Previously, as a banker, you were an entrepreneur within your bank. You were responsible for many decisions. You received your targets, but you were flexible how you planned to reach them,» said Beat Jakob. The former UBS-banker works as a personal coach for unemployed bankers.
Less Leeway
Today, with the tightened regulations, banks are much more detailed in what they want from their employees. The level of target achievement is controlled on a weekly basis, increasing the pressure on employees. The individuality of each banker is less important and older employees are finding it harder to adapt to this development.
The middle management is also increasingly under pressure, because on the one side, they feel the ever rising demands from their bosses, while at the same seeing the frustration mounting among their subordinates. With the directions and targets being much more detailed, middle managers don't have any measures to change the situation themselves.
«From Thriving to Surviving»
This is in a nutshell the frustration for a generation of experienced managers, who proved their value to their employees over a great many years and who now face being fired. The reorganization at Credit Suisse announced last week is just the most recent example.
«From thriving to surviving,» is what is taking place at the banks of Switzerland and is what makes bankers take cover and reduce their personal involvement. They want to avoid appearing on the radar for the already announced savings programs.
If this fails, banking staff should do five things, Beat Jakob says:
- First: Coming to terms with leaving the company emotionally. Employees need to address their doubts and sense of hurt. For a successful job hunt, the emotional reboot is crucial.
- Second: Step back.
- Third: Analyze the personal situation.
- Fourth: Evaluate your knowledge base and look around for opportunities.
- Fifth: Do sports and don't drown your sorrows in alcohol.
