The tax specialists were the first to arrive at KPMG in September. The bulk of the troops were welcomed on Monday 3 October, and around a hundred people are expected in January to join the audit department. From the first week onwards, every new joiner benefits from a training tunnel with a part to be followed in person and a part in autonomous digital modules. Then they go on a week-long trip abroad. This year it will be to Spa in Belgium.

"The idea, like in a class, is that they get to know each other. There are training sessions, case studies and role-playing, but also festive moments," Hassler explains. This helps to retain these new recruits, given that the turnover rate of employees is reputed to be high at the Big Four. KPMG does not want to disclose annual figures. "Because people would be tempted to compare apples with pears. Turnover in business is natural and healthy. But it must be reasonable. This is one of our concerns today, particularly through selective retention." Logically, the company prefers to seek to retain the best employees, whom it describes as "top contributors" rather than those who do not adhere to this "promo" mindset.

And let's not forget that the talent of the Big Four is a choice pool for headhunters, who are used to doing their business there. This gives employees the choice to leave the company at the end of their training. In response to this, and in a proactive manner, KPMG has chosen to value internally the return of employees who have been tempted to go elsewhere and then returned, disappointed. In the company, they are called "boomerangs". "When they leave, they either go back to their country of origin or they go to our clients, and we can continue to do business together. Few go to other Big Four companies."

One third of new joiners are not from the EU

But before you can keep them, you have to attract them. In Luxembourg, recruitment is the hot topic of the moment, whatever the sector. Despite their reputation for offering an inclusive entry into the workforce, the Big Four are finding it less easy than before to recruit new talent, even going so far as to have to look for them on the other side of the world, or to use artificial intelligence to source candidates.

"The local market is under pressure, we have a very low unemployment rate and a lack of labour in all sectors, including our clients. Luxembourg is losing its attractiveness and competitiveness with other countries. We discussed this with the UEL and between HR departments. There is a limited market in terms of talent, especially for digital and fintech profiles. Training in these areas is not sufficient. Luxembourg is not necessarily on the radar of students either."

This year, KPMG's 300 new recruits there were 250 in 2021) represent 42 nationalities. A third of the new talent comes from outside the EU, and only half of the new arrivals come from Luxembourg and the three border countries, whereas they made up the bulk of the new joiners two or three years ago. "We have to look beyond the EU for talent, and in a different way. This is the first year we have had to source young graduates. We are competing with the whole world."

Luxembourg is losing its attractiveness and competitiveness with other countries [...] It is also not necessarily on the radar of students.

 Géraldine Hassler, head of people and culture, KPMG

The competitiveness of tax and social labour law in question

The attractiveness of Luxembourg and its competitiveness explain part of the phenomenon. Since the pandemic, competition between countries has also increased, depending on the legislation in force regarding telework. "The attractiveness of Luxembourg on flexibility and telework is limited for non-resident foreign candidates because of less flexible tax and social conditions than elsewhere, such as the UK.

Another factor is obtaining a work permit, which is less easy to get in Luxembourg (2-3 months on average), than in Germany for example. "We are being robbed of German-speaking talent, which is already scarce, by Germany because of this cumbersome procedure," comments the HR director. Tax optimisation of packages is also less easy than before, especially for experienced candidates. Finally, Belgium has introduced a tax-free allowance to compensate for the costs of teleworking which does not exist in Luxembourg, which also creates competition.

A modified salary package

In addition to salary, teleworking policy and flexible working hours are now among the new attractive criteria sought by candidates. With a particularity linked to Luxembourg, which concerns the difficulty of finding accommodation in the country. "Today, the attractiveness of Luxembourg is closely linked to key factors such as access to affordable housing and the cost of living. These factors can sometimes be a hindrance for certain candidates, both junior and experienced".

In response to this, KPMG's human resources department has adapted its salary policy for new joiners. "We want to avoid overbidding on salaries, but instead offer experience. We have chosen to include the variable part of their remuneration in the fixed part, which allows them to start their career in more serene conditions financially and to have greater access to affordable housing," comments Hassler, without however agreeing to reveal the average salary on hiring. In return, there is no bonus for juniors.

The "new joiners" have a six-month trial period after which a satisfaction survey is carried out by KPMG. When they move up the ladder (from junior to senior, then manager and director before reaching the holy grail of partner), usually after a year, they are again entitled to more leadership than technical training and a seminar abroad. "There will be about 600 senior people promoted this year after the assessments, who will go for four days to Club Med in Marbella in October. The managers will go to Opio, near Nice, and the group's new associates to Orlando."

This article was originally published in and has been translated by Delano.