The pandemic, lockdown and shift to working from home have shaken up existing approaches to employment and company culture and further highlighted generational incompatibilities in the philosophy of what employees and employers are--and what they are not.

Speaking at a webinar organised by the Luxembourg Private Equity and Venture Capital Association (), (HSBC), Lindie Fourie (Sanne), Geraldine Hassler (KPMG) and Daphne Rosseeuw (DLA Piper) exchanged on the changes their companies have adopted to better retain and attract quality workers.

Compensation, more than just money

Of course, the right salary might attract many people, but “once people have that, they look for a little bit more. That’s human nature,” said Polli. It is therefore essential to offer other things, like a firm culture that is diverse and inclusive, a purpose--driven by ESG for instance--flexible and hybrid working and a growth strategy, the HSBC Luxembourg CEO suggested.

Hybrid work, particularly in Luxembourg, could be a double-edged sword, he warned, as some employees living across the border only have a limited number of teleworking days.

Accepting that “people now have multiple expectations around their career” is also primordial. “There should not just be one way to build a career,” and the employer should accompany the employee in building their path, said Rosseeuw, DLA Piper Luxembourg’s head of HR.  

“Purpose and flexibility are key now,” added Hassler, KPMG’s head of people and culture.

Be proactive and communicate

Retaining existing talent is just as important as attracting new profiles, and this should also be done by being proactive in your engagement with them, the panellists agreed. For this, honest and proactive communication is key.

“Have continuous and transparent communication with your people,” said Hassler. For her, it is better to share not just the good news, but also failures with staff. Open communication also means proactively seeking out employees who are not as driven and engaged anymore and talking with them about potential solutions, changes and expectations. If employees are seen as the most important resource of a company, “we need an alignment between what we say we do and what we do,” Hessler added.

Regularly raising salaries to evolve with the market value is also key, so as to avoid beliefs that an employee will only get a raise if they threaten to quit. “Reactive retention has its place”, said Polli, but relying on it systematically would send out the wrong message.

Recruit the right people

The other key to attracting and retaining talent in the mid- and long-term is also to invest in the initial stages--the recruitment phase--to avoid quiet quitters and unhappy employees. In short, “recruit the right people,” says Polli. Understand the demands of people in different stages of their evolution, see if they match with the position they are applying for.

You have to ensure that, regardless of their position in the company, the person is a “cultural match” with the business’ internal culture, as they should be “able to participate, take on some responsibility and be involved with the company strategy”, says Fourie.

But even the ‘right people’ might not stay, if the living conditions aren’t good, the panelists agreed. Rosseeuw cited the importance of acknowledging the difficulties particular to Luxembourg--real estate and mobility. The advantage Luxembourg had in remuneration in the past is becoming less and less attractive compared to other countries. These aspects would not be an issue for contracts of 3-5 years, but for the long term could hinder some candidates. The government should therefore tackle these topics--that is the message that the panelists sent out.