“When looking to attract top talent, employers will have to ensure first and foremost that salaries are competitive, while also considering other factors such as career development and work-life balance initiatives.”
Luxembourg is “experiencing an increasingly competitive war for talent,” Joël Poilvache of Robert Half, another recruitment firm, wrote in its “Luxemburg Salary Guide 2019”. Poilvache stated:
“To really win this ‘war’, the best line of attack may very well be a defensive one: companies with a clear retention and talent management strategy will eventually come out on top.”
To foster loyalty, employers need to be flexible with their staff and invest in training, in addition to offering financial incentives, according to the firm.
Under Luxembourg’s “indexation” system, pay and pension payments rise automatically when the average inflation rate remains 2.5% or higher for more than six months. Wages go up by 2.5% for all employees. The last indexation took place in August 2018.