Salaries in Luxembourg – what the surveys suggest
Since the economic downturn and the slow speed of recovery, one way in which businesses are lowering costs is to freeze salary increases. However, Luxembourg is one of the few countries in Europe that still has an increase in economy and thus a higher demand for qualified personnel.
The indicators of division
Robert Walters’ annual salary survey has uncovered a number of trends in salary spikes and predicts an uncertain future across financial sectors. Because of the growth in certain financial areas, salaries remain consistently high. Within Europe, Luxembourg has the highest salary ratio per capita and it is still increasing. This is not relatable across the whole line of disciplines, though: it is only specific roles and industries that show these spikes. This occurs despite a rise in unemployment figures - area’s where there are potential difficulties in Luxembourg are said to be within Human Resource roles and retail banking – hiring is slow. But in private banking, where, those with a strong portfolio can begin to call the shots, business is on the up.
Being ahead of the curve
Aside from more stringent requirements for education and experience, alongside an increase in related qualifications, ensuring a profile is considered attractive, Robert Walters suggests that the majority of their clients are fluent in at least two languages. French is still considered the most important, with English and German close behind. As Luxembourg becomes a EU hub, Italian and the Scandinavian languages are gaining prominence too. With the right profiles, candidates are positioned to negotiate ‘up’ on their salary package, for example, a professional with reasonable but not extensive IP (Intellectual Property Business) experience can feasibly command a salary of 80k based on the fact he/she could court a number of potential employers.
Balancing Act: salary versus benefits
Robert Walters have seen significant increase of salary in Real Estate, Private Equity, Accountancy and specialist funds. Tax specialists are in high demand but this realm proves hard to attract the right profile to Luxembourg. Outside of IPs, holding companies and regulatory and compliance fields it is becoming harder to negotiate a competitive package. Local regulatory bodies are establishing new regulations post-crisis and demand more reporting and processing in their offer systems. Candidates can trade less salary against more ‘perks’ such as bonus packages, stock offers, relocation and a guaranteed period of promotion/indexing in smoother times. But the most crucial information remains: experienced candidates are hard to find and even harder to keep. This ‘knowledge’ remains a candidate’s most .valuable commodity.