OVERVIEW OF THE INDUSTRIAL SECTOR IN LUXEMBOURG

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Edith Shields
6 years ago
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1 Luxembourg Industrial Sector Survey 2018

2 Industry Overview TELLURIDE has undertaken to carry out a survey of the industrial sector in Luxembourg. The purpose of this survey is to better understand the current issues and future risks of this industry by defining its characteristics and analysing its major Human Capital indicators. The survey was targeted at professionals and focused on market overview, companies branding and reputation, retention and recruitment issues, salary benchmarks and recruitment trends. This survey was compiled by sending out two electronic questionnaires to 5,700 industry professionals working in Luxembourg (employers population and employees population). These results provide us with the necessary market insight, to give you the best possible advice when it comes to recruiting the best possible professionals. We wish you a pleasant read. OVERVIEW OF THE INDUSTRIAL SECTOR IN LUXEMBOURG companies of which people in corporate employing over 10 of the labour force environments 200 people people in operational environments AS EMPLOYERS, HOW OPTIMISTIC ARE YOU REGARDING THE FUTURE OF THE LUXEMBOURG INDUSTRIAL AND COMMERCIAL ECONOMIES? DOES YOUR COMPANY INTEND TO INVEST IN NEW PRODUCTION / OPERATION CAPACITIES IN LUXEMBOURG IN THE 2 COMING YEARS? 13 8 Very optimistic Employers are overall optimistic and reassured with the current 33 and future situation of the Reasonably optimistic Luxembourg industrial sector. They do, however, remain 67 Neutral naturally cautious with further investment and production Reasonably pessimistic capacity projects, as 67 are not planning to invest in the foreseeable future. Yes No 2 These figures and estimations are the proprietary information of Telluride Recruitment S.A.

3 Recruitment Issues DO YOU INTEND TO INCREASE / DECREASE YOUR HEADCOUNT IN THE 12 COMING MONTHS? IF YOU INTEND TO RECRUIT, IN WHICH FUNCTIONAL AREAS? 62 PRODUCTION/MANUFACTURING INFORMATION & TECHNOLOGY SALES & MARKETING LEGAL & TAX FINANCE & CONTROLLING, ACCOUNTING, INTERNAL AUDIT, ADMINISTRATION 8 15 ENGINEERING/MAINTENANCE QUALITY/CONTINUOUS IMPROVEMENT PROCUREMENT, SUPPLY CHAIN/LOGISTICS OTHERS 4 9 DECREASE STABILIZE INCREASE Headquarters / Corporate / Holding Operational / On Site IN THE ABOVE MENTIONED FUNCTIONAL AREAS, WHERE DO YOU OBSERVE A SHORTAGE OF CANDIDATES? PRODUCTION/MANUFACTURING INFORMATION & TECHNOLOGY It appears that recruitment in corporate environments is more dynamic and active compared to that in operational environments. However, with the implementation of the BEPS ( Erosion and Profit Shifting) fiscal directive, the landscape of holding companies is set to change in the next few years. In parallel, the news of important investments by major industrial actors over the last 18 months confirms an upturn in economic activity and obvious new employment opportunities. SALES & MARKETING LEGAL & TAX FINANCE & CONTROLLING, ACCOUNTING, INTERNAL AUDIT, ADMINISTRATION ENGINEERING/MAINTENANCE QUALITY/CONTINUOUS IMPROVEMENT PROCUREMENT, SUPPLY CHAIN/LOGISTICS OTHERS 5 These figures and estimations are the proprietary information of Telluride Recruitment S.A. 3

4 Recruitment Issues WHEN RECRUITING, WHICH LANGUAGE SKILLS ARE THE MOST DIFFICULT TO FIND? REGARDING THE ATTRACTIVENESS OF LUXEMBOURG, WHAT OBSTACLES DO YOU FACE WHEN RECRUITING CANDIDATES ABROAD? Luxembourgish German English COUNTRY IMAGE / BRANDING SALARY LEVEL INCOME TAX TRANSPORTATION Dutch French HOUSING EDUCATION SYSTEM 6 22 Spanish COST OF LIVING 27 When recruiting, employers are mostly looking to fill operational roles for production functions as well operational support services roles. The lack of good IT profiles remains present but is not news. A strong and increasing demand for production experts and managers as well as engineering processes and maintenance experts has been obvious for over a year. Moreover, the international and multicultural Luxembourgish environment requires a plethora of multilingual candidates who are difficult to source - particularly those fluent in German and Dutch as well as at least fluent in English if not also French. The request for Luxembourgish-speaking candidates, though low, remains. The main obstacle, when it comes to attracting foreign candidates, remains the overall cost of living, including rental costs, in Luxembourg. The attractiveness of the Luxembourgish salary package has decreased when compared with other European countries sometimes due to tax reforms, like for Germany and Belgium, but also due to better economic situations in parts of Eastern Europe and a clear economic recovery in countries like Spain and Portugal. However, the effort of the Luxembourgish institutions to promote the country internationally (quality of life, general feeling of safety, stability, culture and education system) continues to bear fruit. 4 These figures and estimations are the proprietary information of Telluride Recruitment S.A.

5 Recruitment Issues FROM YOUR POINT OF VIEW, DO YOU AGREE WITH THE FOLLOWING STATEMENT «CHANGING JOB AND / OR EMPLOYER IS NECESSARILY LINKED TO A SALARY INCREASE»? FROM AN EMPLOYER POINT OF VIEW: FROM AN EMPLOYEE POINT OF VIEW: Headquarters / Corporate / Holding Operational / On site Headquarters / Corporate / Holding Operational / On site NO YES NO YES IF YES, WHAT PERCENTAGE? FROM YOUR EMPLOYEE POINT OF VIEW, WHAT WOULD BE YOUR MAIN MOTIVATION(S) FOR CHANGING EMPLOYER? 12,47 13,40 23,26 20,86 PERSONAL DEVELOPMENT OFFER (training, new skills acquisition, executive programs, certifications) COMPANY CULTURE 7 13 PRODUCTS / SERVICES AREA 4 SALARY INCREASE EXPECTATIONS (EMPLOYERS SIDE) Headquarters / Corporate / Holding Operational / On site SALARY INCREASE EXPECTATIONS (EMPLOYEES SIDE) Headquarters / Corporate / Holding Operational / On site SALARY INCREASE 20 MANAGERIAL ROLE 12 CAREER PERSPECTIVES 18 ATMOSPHERE 12 COMPANY ORGANIZATION 8 COMPANY STRATEGY 6 Predictably, employees, unlike most employers, consider a change of role or a change of employer to necessarily mean a pay rise. The more junior the employee, the more she/he will consider changing employers as the best way to advance their career as well as to increase their revenue, sometimes by as much as 23 in a corporate environment. The job content, learnings and new competencies recquired, are not the only criteria when changing jobs. In addition to the salary aspect, the other major considerations, for junior and mid-level employees, are the career perspectives and professional development opportunities. The less important considerations are the activity, the culture and the atmosphere of the potential new employer. To the contrary, for managers and senior managers, these last points are the most important factors. These figures and estimations are the proprietary information of Telluride Recruitment S.A. 5

Retention Issues WHICH ARE THE FIVE COMPANIES IN LUXEMBOURG WITH THE BEST EMPLOYER BRANDING? DO YOU INTEND TO CHANGE EMPLOYER IN THE NEXT 12 MONTHS? 1. 2. 43 3. 4. 57 YES NO 5.

OPERATIONAL/ON SITE POPULATION 6,9/10 HEADQUARTER/CORPORATE/HOLDING POPULATION 6,8/10 29 0 5 10 71 YES PRODUCTION/MANUFACTURING INFORMATION & TECHNOLOGY SALES & MARKETING LEGAL & TAX FINANCE &

6 Retention Issues WHICH ARE THE FIVE COMPANIES IN LUXEMBOURG WITH THE BEST EMPLOYER BRANDING? DO YOU INTEND TO CHANGE EMPLOYER IN THE NEXT 12 MONTHS? YES NO 5. FROM YOUR EMPLOYEE POINT OF VIEW, HOW SATISFIED ARE YOU WITH YOUR CURRENT JOB? IF YES, DO YOU EXPECT TO MOVE TO A DIFFERENT FUNCTIONAL AREA? OPERATIONAL/ON SITE POPULATION 6,9/10 HEADQUARTER/CORPORATE/HOLDING POPULATION 6,8/ YES PRODUCTION/MANUFACTURING INFORMATION & TECHNOLOGY SALES & MARKETING LEGAL & TAX FINANCE & CONTROLLING, ACCOUNTING, INTERNAL AUDIT, ADMINISTRATION ENGINEERING/MAINTENANCE QUALITY/CONTINUOUS IMPROVEMENT PROCUREMENT, SUPPLY CHAIN/LOGISTICS OTHERS 5,1 6,7 7,5 6,5 6,6 7,1 6,9 6,4 7 Generally, job satisfaction is high, even if employers tend to underestimate that fact. Job satisfaction in the industrial sector is higher than in the banking sector. This points to a stronger employer loyalty in the industrial sector. Over half of employees consider changing employer in the next 12 months, which indicates trust in the economic situation as well as in the positive perspectives of the sector, but also an interest in professional development. However, employees remain cautious when it comes to changing career direction and environment, particularly those with over 10 years experience; this is a very different attitude to that of Anglo-Saxon employees. Moreover, there is a very large gap between the wish to change jobs and actually do it. NO 6 These figures and estimations are the proprietary information of Telluride Recruitment S.A.

7 Talent Management Issues WHICH COMPETENCIES DO YOUR EMPLOYEES HAVE TO DEVELOP IN ORDER TO IMPROVE YOUR COMPETITIVENESS? WHICH COMPETENCIES DO YOU HAVE TO DEVELOP IN ORDER TO IMPROVE YOUR EMPLOYABILITY? INTERPERSONAL SKILLS REGULATORY SKILLS ORGANISATIONAL SKILLS COMMERCIAL SKILLS PEOPLE MANAGEMENT SKILLS TECHNICAL SKILLS LANGUAGE SKILLS 16 INTERPERSONAL SKILLS 10 7 REGULATORY SKILLS 8 16 ORGANISATIONAL SKILLS COMMERCIAL SKILLS PEOPLE MANAGEMENT SKILLS TECHNICAL SKILLS LANGUAGE SKILLS 17 On this point, employers and employees are in agreement. Improving overall managerial skills allows employees to progress in their career and employers to have more efficient succession planning. Technical skills remain a highly necessary employability factor. WHAT ARE THE MAIN STRENGTHS / WEAKNESSES OF YOUR CURRENT COMPANY? EMPLOYERS POPULATION ANSWERS: WHAT ARE THE MAIN STRENGHTS / WEAKNESSES OF YOUR CURRENT EMPLOYER? EMPLOYEES POPULATION ANSWERS: PERSONAL DEVELOPMENT OFFER (training, new skills acquisition, executive programs, certifications) COMPANY CULTURE PRODUCTS / SERVICES AREA SALARY POLICY MANAGEMENT TEAM CAREER PERSPECTIVES ATMOSPHERE ORGANIZATION STRATEGY PERSONAL DEVELOPMENT OFFER (training, new skills acquisition, executive programs, certifications) COMPANY CULTURE PRODUCTS / SERVICES AREA SALARY POLICY MANAGEMENT TEAM CAREER PERSPECTIVES ATMOSPHERE ORGANIZATION 57 Strength Weakness 71 STRATEGY Employers and employees converge on this issue and both groups show a strong confidence in the products and/or services offered by their company. Everyone seems to be in agreement that atmosphere, professional and personal development, together with career prospect issues, appear as the weak points in the sector. It remains to be seen if these weaknesses are a reflection of a perfectionist attitude or a current truth. These figures and estimations are the proprietary information of Telluride Recruitment S.A. 7

8 Salary Figures COMPENSATION AND BENEFITS Figures and information based on our survey results and from internal database information (Blank if not relevant) Salary = Average base gross salary for this area of function, depending on company size and global career seniority = Average bonus in of base salary (count as 0 in the calculation if no bonus) = Company is usual or not for this function Company Size <200 p >200 p Global Seniority (years) <5y 5y to 15y >15y <5y 5y to 15y >15y FUNCTIONS R&D: Product Engineer 44 no 49 no 53 3 no 46 3 no 57 7 no 61 8 no Laboratory Manager 54 3 no no 50 6 no 64 8 no no SUPPLY CHAIN & PROCUREMENT: Logistics or SC Manager 57 8 no 65 8 no 64 7 no no Head of Supply Chain no no no yes Purchaser 47 2 no 53 5 no no 53 8 no 66 8 no no Head of Procurement yes yes PRODUCTION: Engineer 44 2 no 51 3 no 56 4 no 46 3 no 55 8 no 60 8 no Production Team Leader 49 6 no 54 9 no 59 8 no 50 6 no 61 9 no 64 9 no Production Manager no no no no Head of Manufacturing no yes yes yes Maintenance Engineer 51 2 no 53 4 no 61 6 no 54 4 no 57 8 no 63 8 no Maintenance Manager 62 8 no 68 8 no no no Plant Manager yes yes yes yes QUALITY, HSE & LEAN: Quality Engineer 46 1 no 54 4 no 57 5 no 48 4 no 57 6 no 62 8 no Quality Manager 58 8 no no no no Lean/ Process Engineer 47 3 no 56 6 no 61 8 no 53 6 no 57 8 no 64 8 no Lean & CI Manager no no 73 8 no 78 9 no HSE/QHSE Manager 58 8 no 64 8 no 66 9 no 76 9 no 8 These figures and estimations are the proprietary information of Telluride Recruitment S.A.

9 Salary Figures COMPENSATION AND BENEFITS Figures and information based on our survey results and from internal database information (Blank if not relevant) Salary = Average base gross salary for this area of function, depending on company size and global career seniority = Average bonus in of base salary (count as 0 in the calculation if no bonus) = Company is usual or not for this function Company Size <200 p >200 p Global Seniority (years) <5y 5y to 15y >15y <5y 5y to 15y >15y FUNCTIONS FINANCE & CONTROLLING: Senior Accountant 41 no 54 4 no 58 5 no 44 no 53 6 no 60 8 no Accounting Manager 59 8 no 69 8 no no no Credit Manager no yes Financial Controler & Analyst 46 no 57 5 no 61 8 no 51 3 no 61 8 no 66 8 no Head of Controlling no no yes yes Finance Manager 57 8 no no yes yes yes CFO yes yes TREASURY: Treasury Analyst 53 8 no 61 9 no no Treasury Manager no no Head of Treasury yes yes SALES & MARKETING: Representative/KAM yes yes yes yes yes yes Sales Manager/Head of yes yes yes yes Product Manager 51 6 no 57 8 no 64 8 no 51 8 no 59 8 no no Marketing Manager/Head of no yes yes yes These figures and estimations are the proprietary information of Telluride Recruitment S.A. 9

10 Salary Figures COMPENSATION AND BENEFITS Figures and information based on our survey results and from internal database information (Blank if not relevant) Salary = Average base gross salary for this area of function, depending on company size and global career seniority = Average bonus in of base salary (count as 0 in the calculation if no bonus) = Company is usual or not for this function Company Size <200 p >200 p Global Seniority (years) <5y 5y to 15y >15y <5y 5y to 15y >15y FUNCTIONS TAX & LEGAL: Tax Analyst 53 6 no 68 8 no 79 8 no Tax Manager/Head of yes yes Legal Counsel 56 3 no 71 8 no no Legal Manager/Head of yes yes HUMAN RESSOURCES: HR Business Partner 52 4 no 61 7 no 74 8 no 58 6 no no no HR Manager no no yes yes HR Director/Head of yes yes INFORMATION & TECHNOLOGY: IT Manager 73 8 no 81 8 no no no CIO/Head of IT 81 8 yes yes yes yes 10 These figures and estimations are the proprietary information of Telluride Recruitment S.A.

AND MIDDLE MANAGERS EARLY CAREER PROFESSIONALS We aim to provide a high level of service to our clients and candidates in three different practices: INDUSTRIAL PRACTICE - Aerospace & Defense -

11 TELLURIDE is a Luxembourg based recruitment agency specialised in the Industrial, Commerce and Services sectors. As operational specialists in the recruitment of Industry experts, we take on recruitment & executive search mandates for four different types of experts: BOARD MEMBERS AND C-LEVELS EXPERTS SENIOR AND MIDDLE MANAGERS EARLY CAREER PROFESSIONALS We aim to provide a high level of service to our clients and candidates in three different practices: INDUSTRIAL PRACTICE - Aerospace & Defense - Automotive - Chemicals - Construction - Electronic - Energy & utilities - Renewable environment - FMCG - Food production - Manufacturing - Pharmaceuticals - Steel & Metal industry COMMERCE PRACTICE - Hotel and hospitality trade - Restaurant and catering industry - Retail - Food distribution SERVICES PRACTICE - Facility management - Healthcare - Logistics & Transports - Media & Telecoms - Professional and consulting services - Public sector - Real estate - IT providers/ support FSPs Thierry Groshens Partner thierry.groshens@telluride-search.com Christophe Goullet Partner christophe.goullet@telluride-search.com Publication Director: TELLURIDE RECRUITMENT Sarl - 24 rue Jean l Aveugle L-1148 Luxembourg This document and all the photographs, illustrations, studies and graphics contained therein are non-contractual and are the exclusive property of TELLURIDE RECRUITMENT Sarl Any reproduction or use, be it partial or complete, of the information presented is subject to prior authorization. A3COM 2018 Photo credits: Images bank Printed on paper from certified sustainably managed forests.

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