The IMD World Competitiveness Centre considers a skilled and educated workforce as a key factor for enhancing the competitiveness and long-term prosperity of a country, in particular in view of the rapidly increasing use of artificial intelligence, robotics and other new technologies. In the IMD World Talent Ranking 2018, the Centre studies the ability of 63 economies to develop local talent and attract staff from other countries with a focus on three main factors:
- Investment and Development, which measures the resources committed to cultivating home-grown human capital
- Appeal, which evaluates the extent to which a country attracts foreign talent and retains professionals from the local talent pool
- Readiness, which quantifies the quality of the skills and competencies available in the country
Excellent capacity to appeal to talent
Luxembourg performs particularly well in the category “Appeal” and ranks 4th among all countries included in the study. The country offers attractive remuneration of management as well as in services professions, attracts foreign highly skilled personnel to its business environment and is not hindered by brain drain. Attracting and retaining talents is a high priority for companies. The high quality of life is also worth mentioning.
Luxembourg also ranks very well in terms of “Readiness” (11th place). Its labour force growth is second in the world. The language skills of staff is also outstanding and senior management has significant international experience.
The country is in 18th place in the “Invest and Development” category. Nevertheless, its pupil-teacher ratio in primary education ranks 4th in the world. Employee training is also a high priority for companies.