Faced with shortages of qualified profiles in compliance, cybersecurity and data, Luxembourg companies are rediscovering internal mobility as a strategic HR lever.
Quiet hiring raises contractual and managerial challenges that need to be carefully managed if it is to become a sustainable and equitable tool.
The Skills-Plang programme, launched by ADEM in November 2025, now provides a public co-financing framework to support upskilling and reskilling initiatives within Luxembourg companies.
The term quiet hiring emerged in 2023, popularised by the consulting firm Gartner, which included it in its list of future-of-work trends. Born in the wake of other viral phenomena such as quiet quitting, it refers to the practice of assigning an employee to a new role or expanded responsibilities rather than hiring a new full-time employee.
In its external form, it can also draw on contractors or freelancers to cover short-term needs. In Luxembourg, where several sectors are facing a structural shortage of specialist skills, this approach is finding particularly fertile ground in 2026.
The Luxembourg labour market is the scene of persistent tension across several job families, particularly in finance, IT and regulatory functions. Demand for compliance roles spans the full range of positions - from operational profiles in regulatory reporting and anti-money laundering to more strategic roles such as compliance managers and Chief Compliance Officers - with all sectors affected by this shortage of candidates: banking, insurance, asset management firms and consulting firms.
Added to this pressure is that of artificial intelligence: companies are increasingly looking for profiles capable of using AI effectively as a productivity accelerator, redefining skills requirements at a pace that external recruitment struggles to keep up with.
It is against this backdrop that quiet hiring is emerging as a pragmatic response. Rather than waiting months to fill a data analyst or compliance officer position in a market where profiles are scarce, companies - particularly in the financial sector - are exploring the upskilling of existing employees.
"Internal mobility allows the more experienced to put their skills to work in other fields and contributes to constant adaptability."
In the face of a shortage of external talent, investing in the ongoing training of existing employees has become essential to help teams familiarise themselves with new regulations and strengthen their risk management skills. This logic, long seen as a stopgap, is taking on a strategic dimension in a market where recruiting the right profiles can take six to twelve months.
Luxembourg's particular characteristics also lie in the structure of its economy itself. Faced with increased competition for rare talent, companies can highlight attractive career paths and training plans aligned with identified needs, considering corrective actions such as internal training and internal mobility. Some institutions have long since made this part of their DNA.
Nicole Dochen, Head of Human Resources and Member of the Executive Committee at Banque de Luxembourg, points out that internal mobility is encouraged because it "allows the more experienced to put their skills to work in other fields and contributes to constant adaptability". In a small market where everyone knows each other and employer reputation is built over time, internal mobility also sends a strong signal to employees: their skills are recognised and their careers can develop within the same organisation.
While quiet hiring can represent an opportunity for employees looking to develop, it also carries risks that HR managers need to anticipate carefully. The first pitfall is overload: an employee given new responsibilities without a reduction in their initial duties can quickly find themselves under strain. Poorly managed quiet hiring can thus become a form of disguised solicitation, perceived as lacking in transparency and generating disengagement or even departure.
The second issue is contractual. Any substantial change to an employee's position - in terms of duties, classification or remuneration - must be the subject of an amendment to the employment contract accepted by the employee. Luxembourg labour law, which is structured and protective, requires that significant changes be formalised and accepted by the employee.
Proceeding with quiet hiring without respecting these obligations exposes the employer to real legal risks. It is therefore essential that internal mobility be accompanied by transparent dialogue, a review of the job description and, where appropriate, a salary adjustment consistent with the new responsibilities assigned.
For quiet hiring to be experienced as an opportunity rather than a constraint, it must be part of a clearly defined internal mobility policy. Establishing an internal mobility policy is essential for talent retention, allowing employees to develop professionally, acquire new skills and contribute to their fulfilment within the company.
Internal job boards, regular career interviews and skills mapping are all tools that give quiet hiring a clear and equitable framework. As Nicole Dochen recalled in the context of the Paperjam HR Leaders 2025, "the challenges of talent retention, recruitment, training and internal mobility have transformed the HR function" to the point of making it a fully-fledged strategic priority.
Luxembourg is not leaving companies to face these challenges alone. In November 2025, the government officially launched the Skills-Plang programme, a groundbreaking initiative that provides direct financial support for upskilling and internal retraining.
The programme aims to provide financial support for upskilling and reskilling within targeted companies, to anticipate the jobs of tomorrow, strengthen employee employability and ensure the competitiveness of the Luxembourg economy, the government recalled at the launch. For the Minister of Labour, this is a clear signal: "anticipate, train and support - these are the keys to a sustainably competitive labour market".
"Anticipate, train and support - these are the keys to a sustainably competitive labour market."
Skills-Plang is aimed at companies established in Luxembourg for at least three years that are undergoing significant transformation in their activities, particularly as a result of digitalisation, the ecological transition or changing customer expectations, explained Steffi Wolak, head of the ADEM employee service. In practical terms, eligible companies can obtain dedicated support including a rapid assessment of their HR and training situation, identification of positions and employees affected by upskilling and reskilling needs, the design of individual skills development plans, and assistance in rolling out training programmes, particularly for SMEs.
This scheme complements the existing co-financing mechanism via the INFPC (Institut national pour le développement de la formation professionnelle continue). Private sector companies established in Luxembourg can obtain training support equivalent to 15% of the annual investment made, rising to 20% for salary costs of participants aged over 45 or without a recognised qualification. Together, these two schemes provide a solid toolkit for HR departments looking to structure a responsible and financially sustainable quiet hiring approach.
When properly implemented, quiet hiring is not simply a crisis management tool in the face of talent shortages. It reflects a corporate culture that values skills development as a lever for sustainable performance. In a Luxembourg market where 335,000 recruitments will be needed by 2040, including 180,000 to replace retiring workers, investing in internal talent is no longer an option but a structural necessity.
For HR departments, the challenge is now to build learning organisations capable of identifying hidden skills, anticipating future needs and offering each employee a credible development path - formalised and supported by the public schemes available.
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