Race for new talent pushes Luxembourg firms to raise wages
Luxembourg's companies are raising employees' wages by more than planned in 2022 in a bid to attract talent to the Grand Duchy, as high living costs deter many from relocating.
Business and European institutions have struggled to find staff because of high-living and property costs in Luxembourg. As a result companies increased their budgets for salary raises planned for 2022, during the second half of last year, according to a British-American consultancy firm.
Budgets for salary raises planned for 2022 increased to an average of 3.3% in December last year, from 2.9% in July, consultancy firm Willis Towers Watson (WTW) said on Thursday.
Companies across the country increased staff salaries by 3.1% on average last year, the WTW study, which surveyed 96 companies in Luxembourg, said.
“Labour shortages in some sectors are driving up the demand for skilled workers, and the surge of growth in other sectors is triggering a race for new talents, with companies competing to attract and retain employees who have more choices than ever in recent years,” Mary Cloosterman-Hughes at WTW said.
30% of employers plan to recruit more staff over the next 12 months, while 3% expect to reduce their workforce, according to the survey.
More than half of the companies try to fill positions in IT, and nearly half in engineering. Sales and finance were also considered priorities.