In preparation for the second meeting of the high committee for the attraction, retention and development of talent, held on 4 December, Luxembourg’s economic affairs ministry commissioned three studies: a comparative analysis of the measures adopted by other European countries (the product research study), an assessment of how Luxembourg is perceived abroad (the perception research study) and a study proposing strategies for optimising the country's international promotion among talent (the promotional strategy study). The three studies were conducted by Steve Duncan and his company C Studios, experts in attracting and retaining talent.

Paperjam is taking a closer look at these three studies. After , today we turn to perception research. Four key markets were targeted for this analysis: China, India, France and Portugal. In each market, an online survey was conducted among working-age talent, aged between 21 and 64, in target professions and functions. All survey respondents had to meet the following criteria: be currently employed; be working in one of Luxembourg’s strategic target sectors; be considering relocation to Europe; and have at least a secondary or higher education qualification.

Key criteria for expatriation

What criteria do would-be expatriates take into account?

Personal security is a top priority for talent when considering a move. Along with access to healthcare, this is the most important consideration. This is followed by practical factors such as the cost of living and the cost and availability of housing. India and China--the two countries furthest from Luxembourg geographically and culturally speaking--both ranked ‘welcoming people’ as their third most important motivation.

When looking at job opportunities, remuneration is the most important factor (8.4 on a scale of 10). However, talented people are also looking for a good work-life balance (8.1), two factors that can be contradictory, notes the study.

Regardless of their current place of residence, external talent is primarily motivated by the possibility of a better standard of living. For 64% of those questioned, an improved standard of living and/or an increase in their earning potential are the main reasons for considering relocating to a European country. This is followed by the search for a better quality of life (53%) and career opportunities (43%). Having friends or family in the destination country is also an important factor for 23% of respondents.

The French have a special profile here. The number one reason given for expatriating to Luxembourg is the search for a better quality of life. A higher standard of living comes second (39%) and frustration with the political and social situation in their country comes third (31%).

Luxembourg sixth choice

Luxembourg is not currently considered as frequently as other European countries as a destination of choice for relocating talent. The grand duchy is only in sixth place, behind top-ranked Switzerland (cited by 40% of respondents), the UK (36%), France (33%), Germany (32%) and the Netherlands (20%). Only 18% of those questioned cited Luxembourg as a place to which they would be interested in relocating. This figure rises to 30% for respondents in Portugal. Chinese and Indians preferred the UK, cited by 49% and 56% of their nationals respectively. The preferred destination for the French is... France, and for the Portuguese, Switzerland.

The perception of Luxembourg as a place to live, work and visit is moderately positive. Switzerland, Germany and the UK consistently rank in the top three countries in terms of ratings in all three categories. Overall, Luxembourg is perceived most positively as a place to work, with the highest ratings given by respondents from Portugal, who are also the most satisfied with Luxembourg as a place to live. Respondents from China are the most likely to give Portugal top marks as a place to visit. Respondents from France give Luxembourg the lowest ratings in all three categories.

While Luxembourg scores well on a number of factors important to talent in their relocation decisions, including access to healthcare, safety and security, it is not perceived as a ‘cost-effective’ location, due to the high cost of living in general and the cost of housing in particular. Paradoxically, despite a perceived high cost of living, Luxembourg is also perceived as offering competitive salaries and benefits.

This article was originally published in .