Author: Julien Frighetto
Key figure: 7.70%
This is the average percentage of salary increase when changing job in investment funds in Luxembourg, based on all assignments handled by the Edouard Franklin’s Investment fund practice team over the last 18 months).
What can we learn from this figure, from a HR point of view?
The assumption that a company needs to offer at least a 30% of salary increase to attract good profiles is a popular misconception that we must abandon.
In this respect, several general studies have also shown that salary is not the main reason for professionals to change job. It is also common at Edouard Franklin to recruit candidates who accept a new position without getting any raise despite the relative risk such change is involving, or even are willing to accept a lower package. Essentially, we observed two different big categories of recruitments:
- One made up of operational professionals with less than 10 years of experience who are looking for professional progression within the hierarchy, meaning also more financial comfort and for whom getting more money is in the top three priorities. But we have also observed they are willing to accept reasonable raises and bet on internal progression too. (10-15%)
- A second category, made up of senior and executive professionals (top management, c-suite…) for whom money is not the biggest priority anymore since they have already reached a certain level in terms of financial comfort.