"Like most recruitment firms, we expected a sharp rise in hiring in 2021 and this has proved to be a reality," says John Newton, chief revenue officer at JCW. The European and US-based financial services recruitment firm conducted a survey of salaries and employee expectations in key European markets, including Luxembourg.

While hiring in the financial sector was on the rise in 2021, employers faced concerns about "attracting and retaining" their employees. "Candidates are much more selective about opportunities," says Newton, who explains that organisations have had to adapt to new ways of working, including hybrid working. "Our clients have not seen a drop in productivity. On the contrary, it has increased."

Beyond the working environment, the JCW study found that 54% of candidates are not satisfied with their remuneration. "The fact that 32% of candidates say they do not receive any bonuses should be a red flag for employers," the study notes. This is one of the factors pushing 60% of candidates to consider professional mobility.

Bright prospects for actuarial science

The motivation of 60% of candidates to change jobs appears strong as 38% of them are willing to move abroad. The challenge of retaining employees therefore demonstrates competition on the labour market between the different European financial centres.

Competition between employers is expected to be even fiercer in 2022, with 47% of financial sector firms expecting hiring levels to increase compared to 2021. On the candidate side, 71% are looking for a salary increase this year.

Recruitment firm JCW then undertook a comparative salary analysis of the finance segments. While a junior actuary can expect €55,000 per annum--which is still within the European average--a department manager will earn an average of €250,000 compared to €211,000 in London (all amounts excluding euros have been converted at the rate of exchange on the date of publication), €213,000 in the Netherlands and €220,000 in Belgium. Such figures show that the need for actuarial recruitment is not weakening and could even become more attractive with the arrival of IFRS 17 for insurance companies.

Audit in decline

Another segment of finance, external auditing, seems to be more troubled. "The lack of future successors is increasing and the number of talent available for vacancies continues to decline. This is also due to the lack of new competitors in a market that is still growing.

While a junior auditor can expect to earn more than the European average by starting at €55,000 per year in Luxembourg, a senior manager will reach around €90,000. Although this is not dissimilar to German salaries and is €15,000 higher than in Belgium, London and Switzerland remain significantly more attractive, offering an average of €141,000 and €160,000 euros respectively. In Switzerland, the demand for external auditing in financial services is particularly high for German-speaking candidates.

Faced with a struggling external audit market, some candidates move into internal audit "for a better work-life balance". Others specialise in IT audit where salaries are slightly higher.

The rise of technology and cyber security

Jobs related to data management are also struggling to remain attractive in Luxembourg. While a data analyst can earn €70,000 in Luxembourg, which is above the European average, a head of data & analytics on average earns €173,000. This is still lower than in London and Switzerland, and even Germany.

A junior legal counsel in Luxembourg earns an average of €55,000 per year, just like a German colleague, but much more than one in the Netherlands (€46,000), Belgium (€48,000) or London (€54,000). However, this is still a long way from the average salary of a Swiss colleague, which amounts to €97,000. It is particularly the expertise in cyber security that attracts people to the legal field. "Organisations remain very vulnerable due to the large amount of sensitive data and data breaches that are becoming more and more frequent," reports JCW.

The technology and cybersecurity market has also remained buoyant in view of the increasing number of attacks on organisations. The focus is once again on Switzerland: "Switzerland is increasingly seen as a global cybersecurity hub. It is not surprising that some of the best consultancies, cybersecurity companies and candidates with a lot of technical knowledge are based in Switzerland." This is reflected in the salaries. For example, a security architecture specialist will earn an average of €112,000 in Switzerland, compared to €94,000 in London, €80,000 in Luxembourg and €70,000 in the Netherlands.

The upward trend in compliance

Unsurprisingly, the compliance segment continues its trend. "Functions such as fraud, AML, anti-corruption and sanctions are in unprecedented demand and there is no sign of a slowdown," the study says.

While an AML analyst can ask for €68,000 a year in Luxembourg, it is only in London and Switzerland that he or she can expect to get better, with averages of €94,000 and €92,000 respectively. Among compliance professionals, a sanctions specialist can negotiate a salary of around €85,000 in Luxembourg, a figure higher than most European centres, with the exception, once again, of London and Switzerland.

A chief compliance officer can expect an average of €225,000 in Luxembourg, compared with €191,000 in the Netherlands, €198,000 in Belgium and €174,000 in France. London, with €352,000, and Switzerland, with €291,500, are still at the top of the list.

This story was first published in French on . It has been translated and edited for Delano.