Expats on assignment are looking for competitive pay and the chance of promotion, according to a new survey.
And to keep their top talent, multinational organisations must factor in the cost of expat housing and benefits into their cost of doing business.
Many HR departments are developing new ways of evaluating and costing assignments considering a cultural perspective, how to move assignees within the organisation and making sure their rewards stay competitive.
“Globalisation of the marketplace is well documented with many companies operating in multiple locations around the world and promoting international assignments to enhance the experience of future managers,” said Ilya Bonic, senior partner and president of international consultancy Mercer’s career business.
World’s most expensive expat city
“There are numerous personal and organizational advantages for sending employees overseas, whether for long- or short-term assignments, including career development by obtaining global experience, the creation and transfer of skills, and the re-allocation of resources.”
As part of the analysis of international assignments, Mercer has looked at the cost of living in more than 400 cities around the world.
Luanda, Angola, ranks as the most expensive, mainly due to location and lack of housing.
Providing an employee package is expensive as even white goods for expats must be shipped from overseas along a challenging route, which makes any import more expensive.
“Quite a few African cities continue to rank high in this year’s survey, reflecting high living costs and prices of goods for expatriate employees,” says the report.
How the cities rank
Luanda (1) takes the top spot as the most expensive city for expatriates across Africa and globally despite its currency weakening against the US dollar,” says Mercer.
Hong Kong is the second most expensive city for expats to live, followed by Tokyo, Zurich and Singapore.
Surprisingly, Seoul, South Korea (6) and Shanghai, China (8) make the top 10 with traditional expensive cities Geneva (7), New York (9) and Bern, Switzerland (10.
At the other end of the table, the cheapest places for expat assignments are: Minsk, Russia (200); Karachi (201); Sarajevo (202); Monterrey (203); Tbilisi (204); Blantyre (205); Windhoek (206); Skopje (207); Bishkek (208) and Tunis (209).
For full rankings and a comparison breakdown go to the Mercer web site
