During the Pandemic an exceptionally large population of over 50s left the global workforce, causing unprecedented local talent demands. Luxembourg is still feeling the impact of competing with many more countries in attracting international talent.
How can companies (and Luxembourg) attract candidates to Luxembourg?
Different strategies for experienced and non-experienced talent are necessary. Although there are many internal political hurdles to overcome, companies with an international footprint can second their international colleagues and rotate from country to country. The recent tax breaks implemented by the government to attract highly skilled non-EU talent falls short to make a real difference. Challenges with experienced hires include schooling, and housing costs; especially for a family, and the accompanying partner employment opportunities, the draft law for accompanying partners to access the job market is a promising development. Get involved; many associations and in particular within the Finance Industry have proved to be successful in attracting companies to relocate, notably the members of PROFIL, especially ALFI, LFF, and the LPEA. The ‘Go International’ roadshows powered by LTI and the LCC are also providing further visibility. More can be done to attract candidates, the LFF has its #Move2Lux campaign and ADEM recently launched a new job site with access to EURES and the LPEA has also had success with its job fairs.
How can companies reduce their staff turnover?
Not unlike other countries candidates continue to consider new opportunities in Luxembourg mainly due to remuneration, learning/growth opportunities, flexibility/WFH, inefficient management, and poor culture.
Remuneration is acutely affecting the Luxembourg market. Inflationary pressures have forced many companies to increase their remuneration offer to new employees entering the company (beyond the legally bound indexation requirements) with too little consideration for the existing employee’s current remuneration. Once the existing staff discovers that new hires are paid more for the same role it can fuel discord. It’s not necessarily about the money it’s about feeling valued as a loyal and tenured employee. (Check out the Valence Theory in psychology).
It’s also too competitive to ignore that an employer of choice is offering flexibility, WFH opportunities, and investing in Learning & Development, including the often-overlooked people management training.
Staff turnover is somewhat inevitable, but with some action, it can be reduced.
How can HR help companies grow?
More and more candidates are conducting their own due diligence on organisations they are considering joining, among remuneration, learning and flexibility, they want a positive work-place culture and without one, sustained growth is difficult to obtain. One sensitive area for HR is to recognise that the current Leadership may be responsible for the prevailing poor workplace culture. I encourage the Board of Directors to hold the Leaders accountable for the well-being of the organisation and individuals and make tough changes for the benefit of society at large.
Internships and graduate opportunities are excellent ways to grow our talent for the future. Many HR departments at the larger firms have their own university roadshows and I believe we need annual Luxembourg Roadshows that will benefit the community at large. Several like-minded individuals within several associations are currently developing an initiative that may provide the Luxembourg ecosystem with just the right marketing to attract this young and dynamic population.
‘Professional, proactive, energetic, and determined to succeed.’
Interview by Luxembourg Official