Roughly 4 out of 5 roles in the grand duchy’s management company (manco) sector are filled through proactive recruitment efforts, with just 1 in 10 recruits hired through job postings.

That’s according to Talent Resourcing, a Luxembourg-based talent management firm, which 766 employees from Luxembourg’s manco sector. The 70-page report, released last week,  focused on talent management challenges within the financial sector and included an analysis of nearly 200 salaries, broken down by role, seniority and managerial responsibilities across mancos, the firm stated.

Remuneration example

As an example, Talent Resourcing shared with Paperjam the average salaries for general management roles, particularly those of conducting officers and country heads. The average salary for a conducting officer with general management functions in Luxembourg in 2024 was €189,000, with bonuses averaging €51,000. Country heads earned €233,000 on average, with bonuses of €68,000. Salaries and bonuses are rounded to the nearest thousand.

Larger mancos can afford standalone chief executive officer or country head roles, offering higher salaries, while smaller mancos often combine the duties of conducting officers with general management responsibilities to optimise resources, explained Talent Resourcing.

Specialised roles

In the asset management sector, recruitment is highly specialised, according to Talent Resourcing. For example, the recruitment of compliance and portfolio management professionals was primarily carried out through headhunting (48%) and cooptation (35%), with job postings accounting for just 11%. This trend reflects the high demand for specialised expertise in navigating complex regulations and industry experience, the firm noted.

Turnover trends

The data revealed that 70% of managers in third-party firms had been with their company for less than four years, with 63% of these managers employed for one to four years. Only 5% had been with their firm for over eight years. A quarter of managers stayed for 5 to 8 years, suggesting that some professionals remained longer due to career advancement or personal preference. This high turnover indicates that professionals may be seeking new opportunities, driven by career progression or sector dynamics.

In contrast, in-house managers in Luxembourg’s asset management sector showed more stability, with 41% having been with their company for 1 to 4 years and 39% for 5 to 8 years. Only 8% had been with their company for less than one year, and 12% had been employed for more than eight years, indicating better retention in in-house roles compared to third-party firms.

Talent Resourcing concluded that accurate benchmarking and insights into employee expectations are critical for addressing the risks associated with high turnover and talent shortages in the sector. The report, for which the exact pricing is not disclosed, is available exclusively via email and is intended solely for companies, not the general public.