Companies recruiting in Luxembourg end up going for the same candidates and are reluctant to invest in the training of potential candidates, but they believe the country needs to boost its national branding abroad.

A recent collaboration between the Union of Luxembourg Enterprises (UEL) and the Federation for Recruitment, Search & Selection (fr2s) has unveiled more details of Luxembourg's employment dynamics. Conducted in late 2023, this is the second employment barometer aimed to delve into the evolving needs of both companies and candidates, while also scrutinising Luxembourg's allure as a professional hotspot.

The findings from the 2024 employment barometer offer insights into several critical domains, including targeted profiles, salary indexation and nation branding.

5-10 years of experience

It is a job profile classic, but companies exhibit a predilection for candidates with 5 to 10 years of experience, while recruitment efforts targeting individuals over 50 remain scant. Interestingly, the average age of seniority across all respondents is 11 years.

Additionally, there's a prevalent inclination towards ready-to-deploy profiles over investing in candidate training, in fact making diverse (and especially young) talent even more scarce.

44% of recruitment firms were mandated for positions related to "audit, risk, and compliance". In contrast to this finding, firms very widely consider (72%) that companies should favour the recruitment of income-generating roles to ensure economic stability.

Read more: Luxembourg unemployment expected to rise further in 2024

Salary expectations and teleworking barriers

Recruitment firms continue to grapple with meeting the demands of sought-after profiles, often resulting in salary expectations that surpass companies' budgets.

The study underscores top reasons driving candidates to change jobs, including better salary prospects (41%), career advancement (29%), and improved quality of life (24%).

Moreover; teleworking limitations, notably tax constraints, emerge as deterrents to attracting non-resident talent for 85% of all respondents.

On the topic of salary indexation, the barometer found that 73% of companies do not fully comprehend it, dissuading them from expanding their presence in Luxembourg.

Read more: Top ten sectors recruiting in Luxembourg

Stronger nation branding

Over a third of firms (38%) say that Luxembourg could do more to improve its national branding, and 40% of firms believe Luxembourg's image to not be perceived positively abroad.