Banks in the grand duchy are struggling to hire personnel, with executives saying the skills shortage has endangered their revenue prospects, a consultancy said in a study issued this week.
PWC said its report was based on surveys of “500 banking executives based in Luxembourg” and “face-to-face interviews with more than 15 banking CEOs,” and is representative of “67% of the Luxembourg banking establishments”.
Finding qualified staff was the primary recruitment challenge cited in the PWC study.
Among respondents who reported problems hiring workers, 73% cited a “deficit in supply of skilled workers”, 55% said “skills requirements in the banking industry have changed”, 34% pointed to “compensation expectations” and 23% observed that “candidates’ view of the banking industry reputation has changed”.
The PWC paper commented:
“These skills are not only in IT related roles such as data analytics, data scientists and cyber security officers but also cover areas of compliance, risk management, front-office and internal audits.”
The staffing shortage has stifled “growth prospects” at some banks. PWC wrote:
“37% of participants indicated that their quality standards and/or the customer experience is impacted, for instance, by increasing the time to market of certain products. This was highlighted by two thirds of players operating in the retail space.”
Banking institutions have shifted their recruitment programmes, with PWC reporting:
“To fill the gaps, Luxembourgish banks are expanding their geographical focus for their skills search. Interviewed bankers reported that they were looking for people beyond Luxembourg, ranging from Western to Eastern Europe, the Baltics or even worldwide. However, this can prove challenging as some profiles – i.e. compliance officers or specialist lawyers – need to be knowledgeable in Luxembourgish legislation/regulation to be fit for the role.”
Banks are equally focused on retention plans that aim for better work-life balance and “upskilling” schemes. PWC said:
“Upskilling has become an important response to the ongoing technological and business transformation of the banking industry--transforming people’s skills and professional knowledge into the necessary future requirements.”
At the same time:
“Some bankers believe however, that upskilling has its limits. Despite this, they also believe it is the way forward to entice employees to embrace change, be more flexible, learn new skills and unlearn old ones.”