Luxembourg Market Update for Clients: Quarter-1 2017
In the aftermath of Brexit, the US elections and the associated political uncertainty, we all had concerns over short to mid-term effects on the economic outlook. Trading in 2017 is now well under way and recruitment activity in Luxembourg is buoyant. Here at KR Recruitment, we have noted strong levels of hiring across multiple sectors: Trust, Asset Management, Commercial & Industrial, Funds and Banking.
We are seeing a lot of new entrants to the market, which is particularly exciting. In addition, many established multinational groups who have an existing operation in Luxembourg are seeking to increase headcount within the Luxembourg operation.
This upsurge in hiring is leading to a skills shortage in certain areas. The best talent, candidates are getting multiple job offers and this in turn is pushing up salaries quite sharply. We are now seeing a “candidate driven market” and returning to a world of pre-crisis labour dynamics in which we have a “war for talent”.
KR Recruitment - Key Trends Q4 2016 and Q1 2017
- The strongest candidates are receiving multiple offers, which is driving up salaries. Due to this competition for talent, companies who can deliver a quick recruitment process are seeing success. We have seen many offers turned down due to competitors moving quicker. A short and expedient interview process is essential in this market.
- Salaries are rising more quickly than at any point in the last 4 years. We are seeing salary increases of up to 20% for the top candidates. 10 – 15% is now quite common.
- The Trust market (an excellent barometer of new companies entering the Luxembourg market) is growing very strongly again. All the major players are experiencing an upturn which shows the overall market is growing.
- We are seeing a steady flow of “new entrants” opening operations in Luxembourg. The much publicised “Tax Scandals” do not seem to have dampened the appetite of multinationals to open operations in Luxembourg.
- With Brexit looming, and the necessity to retain access to the single market, many financial services firms currently located in London, are seeking to open new or grow existing operations here. This is particularly prevalent in the Asset Management and Funds space.
KR Recruitment – 2016 Performance and Q1 2017 outlook
- 2016 saw the highest revenue generation by KR Recruitment in its history.
- 2017 – we are seeing more recruitment activity in 2017 YTD vs 2016 YTD. The outlook appears to be very positive.
- KR recruitment is anticipating c15% growth YOY, from an already strong trading base in 2016.
- As stated previously, it will become increasingly difficult to secure the best talent. Those that move quickly and decisively in the recruitment process will have a distinct advantage.
- In addition, we are noticing several skills shortages within Luxembourg and increasingly need to head hunt these skills from other European countries. This trend will continue to increase in the coming years. Companies which offer a relocation package of sorts will be at an advantage in this regard.
Examples of roles successfully placed during Q4 2016 & Q1 2017
- Accountants - €45 - 65K across Trust, Commerce & Industry (C&I), PE, RE, Funds and Banking
- IFRS Controllers - €60 - €80K across Real Estate / PE / C&I
- Manager Fund Operations - €90K
- Lawyers - €90K
- Company Secretary (Corp Admin) - €50 - €70K
- Project Manager (Accounting Systems) - €100K
- Controller Global Bank - €100K
- Head of Legal - €130K
- Head of Treasury - €150K
- Fund Accountants - €50 - €70K