People and organisational performance

Paperjam: In the quest for performance, what is the role of the HR Director alongside the CEO? Does the role involve executing a roadmap, or guiding corporate strategy?

: Long gone are the days when the HR function was simply a matter of executing a roadmap. The challenges of retaining talent, recruitment, training, internal mobility, and those arising from changes in society--notably DEI--have transformed the function. At Banque de Luxembourg, the HR function makes a clear contribution to the direction of our strategy. One of our four strategic priorities is 'people'. This is the strongest pillar of our B Corp certification. So it's no coincidence that the HR function sits on the bank's executive committee, involving it in strategic choices, enabling it to debate development options, influence certain options and anticipate future developments.

How can the quest for performance be combined with ever-higher aspirations in terms of work-life balance?

At the bank, the interests of all our stakeholders are taken into account, including those of our employees. Our positioning as a 'caring company' puts people at the centre. We pay particular attention to the wellbeing of our employees, which includes respect for the work-life balance, which is anchored in our culture. In other words, performance can only be achieved if it goes hand in hand with sustainability.

Talent acquisition

The job market is dominated by the "war for talent". How does this play out in practice in your own recruitment processes? What difficulties do you face?

We're looking for people who are likely to feel at home at the bank, so that they can progress and contribute to our development. In this case, we're not just looking for skills or experience, we're looking for people who have values, who want to build and who want to work in a community in which every person counts.

This approach implies a number of things in our recruitment process. We favour a resolutely human approach, to give us the time to get to know each other through several interviews. We take the time to understand the requirements and expectations of candidates, so that we can provide them with personalised support during the recruitment and onboarding phases. Finally, we make sure that the process is as responsive and agile as possible, as candidates are very much in demand. It's also about respect.

The difficulty today lies in the scarcity of certain profiles--multilingual, specialised expertise, especially in risk and regulatory issues or in technology. We're lucky to work for a company that enjoys a very good image in the market. That's a plus.

What 'weapons' does your company use to fight this battle? And what additional 'weapons' would you like to have, if you had the power to change regulations and laws?

In our very human, caring and trusting culture, the terms 'weapons' and 'battle' are less common to us. What's important for us is to create an excellent candidate experience, to create a bond of trust that reflects our culture as a caring company.

We also believe that collaborative recruitment - good collaboration between HR experts and hiring managers - is the key to a successful recruitment process. Our employees are our best ambassadors, and we involve them in recommending profiles from their network.

Employer branding

Applied to your organisation, what is your definition of 'employer branding'?

Employer branding refers to the image and reputation of a company as an employer among its employees and potential candidates. It encompasses the values, culture, benefits and overall experience that a company offers its employees: quality onboarding, a strong corporate culture, attractive career development opportunities, employee wellbeing, transparent and regular communication, recognition and reward, a good work/life balance and involvement in decision-making. This requires the mobilisation of all the energies in a company, and the role of HR is precisely to make this link.

We place great emphasis on the human factor, making it central to the way we operate, both internally and externally, because of our group's status as a 'company with a mission'. So, as well as offering our employees a working environment and tasks conducive to the development of their skills and their personal fulfilment, we also enable them, through their professional activity, to make a positive contribution to society and the environment.

In the light of this definition, how important is HR in promoting this 'employer brand'?

Human resources obviously play a central role in the development of the employer brand, since HR is at the heart of recruitment, talent management, wellbeing at work, DEI [diversity, equity and inclusion] and recognition policies.

At Banque de Luxembourg, we have opted for cross-functional management of the employer brand, asking different departments to contribute to its development. This approach ensures that our employer brand is more authentic and more coherent, because it is perfectly aligned with employees' experiences, making it a real driver of commitment.

Reskilling and Upskilling

In terms of upskilling, what are the priority needs that you have identified within your organisation?

Over and above the needs associated with regulatory training, which is generating sustained and ever-increasing activity, we have three priority areas. Firstly, to support the development of leadership and management skills, which underpins our people-centred approach.

With the introduction of a new learning management system, we are also supporting in-house experts in the creation of e-learning courses on our internal processes, tools and products, in particular to support the bank's transformation projects. Finally, we support initiatives linked to the development of diversity and inclusion.

And what tools and systems have been put in place within your departments to support the ongoing training of employees?

Skills development is a priority for Banque de Luxembourg, and this is reflected in our integrated HR policy, which includes a skills framework tailored to the bank's needs, which is set out in job descriptions. The level of mastery of these skills and business expertise is assessed each year as part of the annual appraisal process, and development points are set out in the individual development plan (IDP). Our employees draw on our skills development offering to build their IDP--not just training, as we have adopted the 70/20/10 model--and we support them in creating a genuine learning culture within the bank.

Talent retention

Is the 'war for talent' also about retaining talent? And if so, what is your conclusion? That attracting talent today is just as complex as retaining it?

Our staff turnover is well below the market average and we have a very high rate of engagement--see the 'You Have The Floor 2024' engagement survey.

To retain our talent, we use two levers: we put in place clear career models with attractive career prospects, and we invest in the development of skills and expertise.

We never rest on our laurels, and we always listen to our employees. We regularly ask them questions to ensure that all aspects of our employee value proposition are competitive.

In terms of challenges, attracting talent with specific and rare skills that we have to source further and further away from the usual catchment area of the Greater Region remains an issue.

What have been the main changes, or what changes are underway, in your company's 'employee pathway'?

Our career model aims to clarify career paths within a structured framework that is published and known to everyone. This makes it possible to offer: clear career paths; identification of the skills to be developed; HR and managerial support for career paths; a choice of career paths adapted to each individual's pace, to respect the desired balance between professional and personal life; a guarantee of greater employability; flexibility in the face of organisational changes and needs.

New ways of working

Flexibility, teleworking... Since the covid crisis, the desire for new ways of working has become more pronounced than ever. How can we respond to this paradigm shift without hampering business performance?

Today, it is through the individual and collective motivation of employees that it is possible to have a positive impact on productivity and performance levels. And it has to be said that while flexibility in the pace and methods of performing these functions is a significant motivating factor, it is above all the individualisation of HR management, skills development, recognition policies, the quality of internal communication and the ability of managers to unite their teams around common objectives that motivate employees on a daily basis.

At the same time, how can we also meet the challenge of employee commitment, which studies show is plummeting?

Today, the challenge for any employer is to create and maintain the right conditions for a long-term partnership with its employees. To do this, it is essential that the company co-constructs its objectives with the teams in line with the business strategy and communicates them clearly. It is also a company that allows employees to demonstrate their full potential through the tasks and assignments they are given, and where achievements are recognised. Finally, it's a company that promotes diversity and inclusion, and looks after its employees.

Employment law

What is your view of the employment rulebook? As it stands, do you see the Luxembourg Labour Code as a partner for employers? Or, on the contrary, something of an adversary?

The aim of the labour code is to regulate labour relations by protecting the interests of employees and employers in a balanced way. There is no real bias. Nevertheless, some texts date back several decades and need to be adapted to the current requirements of the labour market. In 2023, the Luxembourg labour law specialists association Elsa published and distributed a white paper containing proposals for modernising and improving certain texts in relation to current practical applications of labour law.

Same fictional exercise as before... If you had the power, what additional provision would you like to introduce into Luxembourg law to meet your needs more effectively?

Labour law provides for only two social statuses: that of the employee and that of the senior manager, which meets very specific requirements--autonomy in the organisation of work, power of direction and decision-making, etc. However, the reality of companies shows the need for an intermediate ‘executive’ status. The creation and, consequently, the legal recognition of this status would be a real step forward for Luxembourg labour law in line with the needs of today's companies.

Digitalisation

How are you transforming digitalisation into an ally of the HR function?

The main virtue of digitisation is that it increases the operational efficiency of the teams in charge of all the administrative aspects of human resources management. But its benefits go much further. For example, we have set up a high-performance, comprehensive e-learning tool that covers business, regulatory and soft skills training needs. We also use it to co-create tailor-made content adapted to our processes and tools.

Benefits

How important is salary attractiveness today in recruiting and retaining talent?

We see from the applications that we have a very good image in the marketplace--local roots, stability, a caring company, long-term commitment, etc. This is an undeniable asset. When a candidate has several options, what will weigh in the balance--over and above the financial elements--is the possibility of being part of a 'project' that makes sense, with a good level of confidence and a supportive environment.

That said, we keep a close eye on our market positioning by taking part in the various benchmarking surveys.

Aside from remuneration, what are the key factors in making a job more attractive?

Attractiveness depends on an environment that promotes work-life balance, flexibility and, more broadly, wellbeing at work.

At Banque de Luxembourg, the human dimension is part of our DNA and is reflected in the quality of workplace relations, mutual respect and a caring and open management culture. This human dimension is recognised by our employees as a central element of our corporate culture [per the bank’s commitment survey]. Many applicants spontaneously mention it during recruitment interviews. We certainly benefit from a 'word-of-mouth' effect from our employees outside the bank.

In addition, the opportunities for career development and internal mobility are another asset that our employees appreciate. At the bank, we offer around a hundred internal mobility opportunities a year, thanks to the diversity of our business lines, a clear career model and personalised development plans that allow everyone to take control of their own career path. This means that everyone can develop and grow throughout their professional life.

In addition, we offer an attractive financial and non-financial package. Our employees benefit from modern workspaces, company restaurants and fitness rooms, as well as health, insurance and cultural and sporting benefits. Their commitment to solidarity is also supported by our Hëllef Hëllefen Fund.

This global approach helps to attract and retain talent, while promoting sustainable professional development.

Mobility

A fleet of electric vehicles, incentives to use public transport... In your company, what measures have been, are being or will be taken to improve mobility?

The bank encourages employees to use public transport by subsidising €60 per month for cross-border commuters. We also encourage our employees who benefit from a leased vehicle to opt for an electric car by offering a financial incentive.

More generally, what are the points of vigilance that you are keeping in mind in terms of the green transition?

Apart from our leasing policy and incentives for means of transport, it is not within our control to control the mobility of employees to get to and from work; it remains a very significant emission factor and has an impact on our decarbonisation trajectory.

CSR

What are the biggest challenges for your organisation in terms of the new CSR obligations?

First and foremost, the implementation of the flood of regulations falling on banks, which are seen as players in the ecological transition.

Then there's the challenge of getting all our staff to commit to concrete CSR actions. We are B Corp certified, so CSR is not something just tolerated, but is promoted within our organisation, whether through skills sponsorship or voluntary work. Employees are receptive to this type of initiative, but we have to organise them and give meaning to each of our initiatives.

How do these same obligations impact your internal upskilling and external recruitment processes?

The CSR axis is very much present in our skills development offer at different levels: products, human rights, environmental initiatives and risks, etc.

We are looking for these new skills through recruitment, but also through upskilling our colleagues.

Gen Z

They're said to be less committed, more demanding, and perhaps even difficult to grasp... Is Gen Z really changing the working environment?

By 2025, almost 30% of the workforce in OECD countries will belong to Generation Z, and the young men and women in this age group have very specific expectations of their work and the environment in which they work. Organisations are therefore going to have to reinvent themselves and the way they operate, because generation Z is above all looking for meaning and flexibility, and work should be about fulfilling oneself as much as having a positive impact on the world. However, it would be a mistake to believe that the upheavals in the working environment are only due to the arrival of generation Z on the labour market: 60% of the jobs of tomorrow do not yet exist, and as a result, all generations of workers will have to be supported by offering them a professional framework that is conducive to the development of skills and continuous learning.

What advice would you give to newly recruited 25-30 year olds?

Young men and women entering the labour market need to cultivate their curiosity and entrepreneurial spirit, while adopting an 'agile' operating mode: the only constant being change, this posture and mindset will enable them to constantly acquire the skills and expertise that will be useful in the performance of their duties, and this will also be synonymous with innovation for companies.

Diversity, equity and inclusion

As an HR director, how would you define your role and responsibilities in relation to DEI issues?

As HR directors, we have become aware of the importance of all types of diversity within decision-making bodies, as a lever for greater collective performance, based as it is on a wealth of exchanges and points of view.

The various HR processes--recruitment, internal mobility, development, learning--are the source of support and encouragement for diversity.

Is the 'exemplary' company a utopia or a feasible objective?

To answer this question, we first need to ask ourselves what an 'exemplary' company is.

I'm still convinced of the richness of a diverse environment. An 'exemplary' company would be one that respects everyone for who they are and what they bring to the group; one that has a vision that motivates and inspires everyone; one that allows all employees to grow and develop without denying themselves. Utopia? I don't think so: what's important is the long-term vision and values. If this long-term vision is sustainable and fair, anything is possible. But for this to work, the staff must be at the centre of this mobilising project, which is part of the long term. At Banque de Luxembourg, our raison d'être revolves around 'caring for future generations', and this drives our commitment and our actions.

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