Big Business In Luxembourg
For nearly two decades, the Luxembourg government has implemented many policies and programs, including an array of tax incentives, to support economic diversification and to aggressively pursue foreign investments and corporations.
These reforms have propagated a burgeoning economy in the compact region and global businesses are thriving. It’s made Luxembourg one of the world’s most prosperous and attractive places for international companies and expatriates, while simultaneously becoming the fastest growing country in Europe, by population.
Finding Room For New Employees and Recruits
New expatriate employees began arriving en masse soon after our client, a Fortune 500 e-commerce giant, chose Luxembourg for its EMEA headquarters. In fact, the company has experienced a 680% increase in full-time employees from countries around the globe. Many other large firms have also relocated to Luxembourg, bringing tens of thousands of expatriates into the small country.
Soon, expatriates (and families) outpaced available rental properties to accommodate them. Meanwhile, existing public school systems lacked multilingual support programs. Expatriates grew frustrated by the dearth of available resources, and that aggravation even reached prospective employees. As such, the company struggled to attract and retain the best employee prospects — even as it added hundreds of jobs in Luxembourg annually.
- Rapid increase in expatriate employees
- Saturated housing market
- Insufficient multilingual school options
- Attracting and retaining talented recruits
Meeting With Officials To Create More Opportunities
Graebel partnered with representatives from other prominent EMEA clients, investors and stakeholders to form a task force that worked collectively to address the unique challenges facing companies in the expanding market. The task force canvassed community officials and authorities about new housing and education opportunities.
One Graebel representative, in particular, was acutely aware of local politics and customs, which helped him develop relationships with several local politicians. Those contacts introduced him to other politicians. Ultimately, the ever-expanding network led to meetings with the Luxembourg Ministry of Housing and the Ministry of Education.
Graebel didn’t simply ask for help. Knowing that more companies and expatriates would consider Luxembourg as a choice destination if there were adequate housing and education opportunities, the team proposed several new incentives to each Ministry.
- Partnered with multiple EMEA clients to address housing and schooling shortage
- Lobbied local officials and authorities for more options
- Met with Ministry officials to propose strategies and solutions
More Housing And Schooling For A More Talented Workforce
Since the early 2000s, Luxembourg has implemented favorable programs and policies to attract foreign investment. This winning strategy has raised its economic profile and its diversification in the workforce (an astounding 44% of the population is foreign-born¹). As such, the Ministry of Education was receptive to reforms that could meet the needs of its changing populace.
Graebel advocated for the government to increase capacity for multilingual students entering kindergarten, and to augment new multilingual programs for public schools. Graebel also contacted multiple international schools, encouraging them to take advantage of several incentive programs created by the Ministry to encourage and sponsor the development of international schools. As a result, many new multilingual schools opened.
The Ministry of Housing was equally committed to alleviating the housing shortage. Officials installed new incentives for renter-targeted construction permits, and hatched a plan for a simpler, easier pathway to home ownership for expatriates.
Meanwhile, Graebel brokered talks with supply chain partners to educate them on the influx of expatriates — and potential renters — entering the country. Word spread quickly. Graebel developed a robust network of housing owners and landlords looking to tap into the largely unrealized market of potential renters flocking to Luxembourg.
These strategic solutions tailored to our client’s needs added housing capacity for those relocating employees planning to rent; expanded schooling options while simultaneously ingraining trust between expatriates and the Luxembourg government; and in time, established our client’s Luxembourg headquarters as a premier destination for relocating employees.
- Spurred more multilingual school-age programs
- Convinced multiple international-based schools to open
- Created more construction permits for renter-targeted housing developments
- Encouraged more landlords and property owners to add rental options
- Established client’s Luxembourg headquarters as premier destination
¹In 2000, the country’s foreign-born population stood at 33.24% of the population.