Archive for category Expatriate Package

Which expat are you?

The one great advantage when you exercise is not only getting fit and in shape, but also that it gives your mind time to think.  My thoughts during my last session was on the different types of Expats that you get.  I am not referring to nationalities or cultures but more to the country that you find yourself being an expat in which can determine the type of expat you will be.

I determined that there are 3 types of expat country experiences:

1. When as an expat you move to a country that is similar to your own, but you are still culturally different, e.g. an American moving to Britain.  Fundamentally, you speak the same language, you eat similar foods, you have similar cultural habits and have watched movies or listened to music that is, can I say it again, similar.
However, even with these similarities there are differences too, they are minute but they are there. Whether it is a word that is different but has the same meaning, e.g. Barbeque to the South African Braai, or the way you address someone from a courteous “Hello, how do you do?” to “Hiya doin?” There are differences and you can feel and do experience these within the country. Your accent is also a dead giveaway and sometimes as an expat you are shunned purely due to this basic difference.

2. The country in between two extremes, this would be the expat that moves from e.g. Australia (English being the common language) to the Middle East.  Your official business language is English and most people would be able to speak and understand English, but you cannot do the same for their official language.  There is a commonality that exists as well, this host country has been exposed to Western culture through trade and industry, politics and commerce.  Sometimes these expats are more readily accepted as a foreign guest in their country. You are respectful of your host countries culture and traditions and are willing to emerge yourself into becoming part of the culture.

3. Moving to a country that is the polar opposite to what you are used to, your nationality is completely and utterly different e.g. Argentinian moving to China.  The official language is one that most people will battle to learn, so when you are standing in a queue you haven’t got a clue what is being said around you.  Your culture, traditions and habits are as vast as the Sahara Desert. You really have to acquire new skills and make major adaptations to survive.  As much as this type of expat experience can be rather a challeneg, it can have surprising advantages.  If you cannot understand the local language, it incentivises you to learn and forces you to be more adventurous and social in trying to fit in and develop a commonality with the local population.  Expats also tend to support each other more as everyone can feel the vast divide between locals and expats.  It allows groups of expats to formalize clubs that bind common interests and creates a social infrastructure of support.

There is another type of expat that we should include under number 3, this would be a person moving from e.g. China to America.  Commonly when a Westerner moves to a host country as an expat there are systems set up to support these people, e.g. compounds in which to live, social groups to belong to, etc.  However, this is not necessarily the case for non-Western expats when moving from their countries to e.g. America or the UK. These expats are not living in compounds or introduced to groups that are similar to themselves. They are often left to their own devices and need to find their own survival mechanisms. This type of expat experience could actually be the most difficult of all.

Which expat are you and are there more?

Denise is an Expat, Mom, Wife and Marketing Manager at  http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 300 locations for all 13 baskets is available here.

 

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The Seasoned Expat

An image of a juicy piece of sirloin comes to mind that is ever so lightly seasoned and seared lightly on the outside but still rare inside and so it should be for the seasoned expat, moving from one country to another should be like a trip to your favorite restaurant with the finest meal placed before you without having to be in the kitchen to cook it.
However, as any expat can tell you from the outset becoming a nomad takes a considerable amount of expertise, experience and well earned years on the road.  Our travels as proficient expats still needs much to be desired, but we have encountered those that have been down this path many times and for many years. They divulge information regarding their travels with the knowledge that us novices wish we had when we first set out on our adventures.
Generally our conversations with other expats goes along the following lines: How long have you been here for?  Eliciting remarks of “Oooohhhhh, shame you will get used to it, it takes a bit of time”.  Little smiles of understanding lilt other expats lips as we all know what the new recruits are going through and just how they are feeling.
Everyone takes their own time to settle and in their own way.
I know we would have made several different choices knowing what we know now from leaving our home to where we would stay on our arrival. Here are some of the questions that I have come across over the years, that can perhaps help those that endeavor to go on this voyage of expatriation.
I have broken this blog up into a series of questions that you need to ask yourself each step of the way, I will post each section of questions throughout the week.
Before you accept the assignment and are at home ask yourself the following:
1. Why do I want to become an expat, what is making me make this move?
Is this due to a career advancement, career move, or to move from a personal situation or country politics.  Make sure you are moving for the right reasons.
2. Will this be a good move for me and my family?
3. Will my marriage survive this move?
4. Will the family be happy?
5. Have I discussed all the details with them and what their needs are?
6. Have I included the children in the conversations?
7. Who is this going to benefit?
Initially, we discussed every detail about the move between ourselves, we went through the pros and cons, both financially and emotionally for the family.  Then included the children in our discussions and found a way for them to feel that they had made the decision, a smart move on my husband’s part. (If the children are too small then they cannot be part of this decision but if they understand how their lives will change then they should be included in the discussions).
Once each member of the family is in agreement with the move, then start asking the following questions:
Is the assignment an open one or a specific contract that will last for 2 or 3 years?
This will help answer questions the following questions -
1. Should I sell my home or rent it out?
2. Can the animals come with, what are the laws regarding this?
3. What relocation company is the best to use for international assignments?
4. What furniture, clothes, personal belongings should we take with us?
5. Where is the country and city we are moving to, i.e. on a map?
6. What do we know about this country?
7. What is the population, culture, religion, political situation and economy?
8. Is there a dress requirement e.g. having to wear an Abaya in Saudi Arabia, suite to work, etc?
9. What is the weather like?
10. What are the local people like?
11. How many hours will it take to get home (back to our own country) if we need to?
12. Is there a consulate for my country there?
13. How safe is it?
14. How many other expatriates live there and which countries do they come from?
Then consider your next plan of action, set dates for each of your objectives.
1. Selling / Renting house out
2. Finding a relocation / removal company
3. Finding an animal relocation company, if you are taking the animals with
4. Buying airline tickets
5. Settling any debts that may arise while you are away
6. Setting up a way to pay for any debts that may arise
7. Saying goodbye to family and friends
8. Selecting a family member or friend to deal with any business / banking issues that may arise

 

Answer these and I will post more for you to consider tomorrow.

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From Paris with Love

Paris the “City of Love”. Who has not wished to live in Paris once in their lives? There is a line in a Baz Luhrmann song called Sunscreen that goes “Live in New York City once, but leave before it makes you hard; live in Northern California once, but leave before it makes you soft.” I think this applies to Paris too, perhaps the saying should be “Live in Paris once but leave before it makes you too French,” unless you are French of course.

Paris has a magic about it that draws people. What is it about this city that is so special? Is it the notion that French people are undeniably romantic? Couples walking hand in hand along the Seine, sharing bread, wine and cheese in the gorgeous green parks, snuggling up on park benches in winter, whispering to each other in cafes! Or is it just that the French sound so unbelievably sexy when they speak?

I am not sure, but whatever it is I would love to live in Paris just once in my life. Paris has all the romantic attractions for me, I could imagine myself as an expat walking the streets, shopping at Galleries Lafeyette or Avenue Montaigne and Rue du Faubourg Saint-Honoré for the crème de la crème. Left bank or right bank you will have a ball.

Then there are the museums from The Louvre  (which could take your entire stay in Paris to get through), Musee D’Orsay and the Centre Pompidou.  The beautifully manicured parks will take your breath away and you could spend hours sunning yourself in deck chairs while life passes you by, from the elegant Luxembourg Gardens or Place des Vosges which is in the fashionable Marais quarter, and most importantly the Château de Versailles, which is opulent, fanciful and luxurious, the gardens cover more than 800 hectares – with woodland, ponds, fountains and statues. Picnicking is certainly one of the best Parisian past times that I have ever experienced.

Then there are the flea markets to browse, cafes and tearooms to experience, street markets, and last but not least the architectural wonders of the Eiffel Tower, The Opera House, Arc de Triomphe, Montmartre, Cité des Sciences et de l’Industrie, and Notre Dame Cathedral to name a few.  Oh Paris, you are calling.

This is certainly not where it stops, as living in Paris gives you access to the rest of the France and well, Paris may well take you a year or two to get through, and then there is the rest of the country to experience.
Certainly enough good reasons to want to be an Expat in Paris!

But what will Paris cost you if you decided to make a career move here? What are you earning and what would you need to earn to live it up in Paris and her night clubs?

Use Xpatulator.com’s SPPP calculator which calculates how much you need to earn in Paris to compensate for cost of living, hardship, and exchange rate differences, in order to have the same relative spending power and as a result have a similar standard of living as you have where you live now. If, for example, you live in New York and earn 100,000 USD, what would you need to earn in Paris to have the same spending power?
Salary Purchasing Power Parity

Applying the cost of living difference based on what will be paid from salary, together with the hardship difference, and arbitrage exchange rate, the Xpatulator calculation is as follows:
Home/Current location salary 100,000.00 US Dollar (USD )
+ Cost of living difference 4.9121% 4,912.08 US Dollar (USD )
+ Hardship Difference 0% 0.00 US Dollar (USD )
Total 104,912.08 US Dollar (USD )
x Exchange Rate 0.7186
Salary in Host/New location 75,389.82 Euro (EUR )
This means, based on all the above factors, that you would require a salary of 75,389.82 Euro (EUR ) in France, Paris to have the same standard of living as currently enjoyed in USA, New York NY on a salary of 100,000.00 US Dollar (USD ). This salary compensates for the overall cost of living difference of 4.9121%, the hardship difference of 0%, and the exchange rate.
Xpatulator.com

And to end off with Baz again:
Don’t feel guilty if you don’t know what you want to do with your life…..the most interesting people I know didn’t know at 22 what they wanted to do with their lives, some of the most interesting 40 year olds I know still don’t.

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As an Expat how do you communicate?

As expats we are far away from the ones we love (maybe distance does make the heart grow fonder), our communication systems of today however do make our loved ones within our grasp even across the miles.
Having left home 3 years ago to follow the road of the expat for the very first time, those first few weeks away from home were the worst of my life.  We had sold almost everything, the beautiful home that I had spent 3 years renovating, our investment flats, our weekend home at the dam with our speed boat, the new plot at a much bigger dam that was meant to be our retirement home, and bits and pieces of furniture that we were not taking with us.
Everything gone in less than 6 weeks, our lives sold up and never to be returned to.  We were not only becoming expats but we were moving our family out of a country that we felt had no future for them.  We packed up our container with the bits and pieces we felt we had to hold onto, said our final goodbyes to our family and friends at the airport and boarded the plane to our new lives.
Little did I realize how lonely those first few months were going to be, we were in the midst of summer vacation, everyone had taken their leave and gone home to visit their families and we were sitting in 45 – 50C degree heat.  The kids had no one to play with, other than themselves and their 30 odd year old mother, we had no car, no clue where to go and have fun, no initial internet connection, no household help, and heat that was suffocating.  To say we were not very happy campers would be under estimating  the situation.  Imagine a polar bear at the equator, and that is probably half of how awful the experience was for us.
Then suddenly we were given a lifeline, the internet was installed in our villa, we were like children in a candy store, the possibilities were endless. My laptop became my communication tool out to the world.  Skype, Facebook, gmail,(email, call phone and chat), msn, yahoo, (email, phone and chat), then what about the Blackberry (where once you have a BB account you can text anyone anywhere in the world for no cost), then there is just the normal texting where there is a cost via your cell phone (these are only a few ways of communicating), all of these became my friends.  I skyped my best friend every day to get a piece of normality into my daily life.   My friend who I had gone to gym with every day  and shared a coffee chat with afterwards was gone, and now once again we could chat with a coffee in hand across the miles. She was my godsend for those first few weeks.
Although my parents were not on Skype, we ensured that on our next visit home they were connected and up and running so that we could have visual contact with them whenever we could, which was also a godsend when my mother was diagnosed with cancer.  My ritual is to sms my mother and say, I am on skype tonight, 7pm your time 8pm mine…. Be there and we can have  a nice long chat.  All my sisters and friends are connected too and if we don’t get to skype we sure get to catch up via Facebook, be it with photos of what has been happening in their lives or merely a status update.  Little happens without me knowing about it the same day.
I sometimes think of those people who are on their adventures as expats in the Congo, or the Amazon or a remote island in the Pacific, where the internet has no connection, cell phones are foreign and satellite phones are the most likely way to communicate.  That connection to the outside world is of such importance to keep your sanity intact, it is interesting to imagine not having some form or communication around to have contact with your loved ones.
And let’s be clear, it is not only for expats but for people who find themselves living in another part of the country to those of their loved ones.  The East Coast USA versus the West Coast USA, North Australia vs South Australia, the miles are vast and the need for communication with loved ones will never fade.
So what is your form of communication across the miles??
Denise is an Expat, Mom, Wife and Marketing Manager at  http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 300 locations for all 13 baskets is available here.

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Before you go on an international assignment

The opportunity to get international experience can accelerate your career, but you should do your homework thoroughly before committing. With the shift in economic strength shifting eastward, the number of people taking international assignments is growing.
 

From a career perspective, the right kind of international experience is an advantage for top level executive positions. However the wrong kind of international experience can hinder your career. Are you going to be exposed to the latest technology/best practices? Is the organization held in high regard? Will the assignment look good on your CV a few years from now? Can you use this opportunity to make your mark?

An international assignment can put you in the spotlight or hide you away so that you are overlooked for future career moves. An assignment that was planned to last a year or two, could become long term, especially if you have school going children.
 

A successful international assignment requires several key skills.

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Morocco, Rabat – Cost of Living

The economy of Morocco is considered a relatively liberal economy. The services sector accounts for just over half of GDP and industry, made up of mining, construction and manufacturing, is an additional quarter. The sectors who recorded the highest growth are the tourism, telecoms and textile sectors. Morocco , however, still depends on agriculture which accounts for only around 14% of GDP but employs 40-45% of the Moroccan population.

Rabat is the capital of the Kingdom of Morocco. Tourism and the presence of all foreign embassies in Morocco serve to make Rabat the second most important city in the country after the larger and more economically significant Casablanca.

Rabat has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.

The latest cost of living rank for each of the 13 Basket Groups is now available.

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Negotiating an Expatriate Package

Although international experience can be helpful for future promotional prospects, companies recognize that employees are cautious about going abroad for “possible future consideration”. Consequently companies usually offer employees financial and non-financial incentives to compensate for the upheaval associated with relocation abroad.

Expatriate assignments can be associated with emotional and physical hardship for the employee and their family. Companies compensate by paying expatriates proportional to the degree of hardship as well as cost of living differentials.

Often expectations for a generous expatriate package run very high, based largely on rumors and urban legend. Individuals may know of expatriates who lived the high life, tax free, and retired early after buying a large house in an exotic location. The reality is a little different for most of us.

Managing these potentially unrealistic expectations is the responsibility of Human Resources and Compensation & Benefits professionals. The challenge is to balance the needs and expectations of employees, with the financial needs of the organization. Satisfying the needs of both the employee and the organization requires designing expatriate assignments to benefit both the organization and the employee.

The amount of salary negotiated should take into consideration a number of factors such as:

• Cost of living difference compared to the assignment location
• Degree of hardship likely to be experienced
• Increased responsibilities such as having less corporate support in remote locations

Negotiating each of the above as separate amounts can simplify an expatriate package negotiation such as:

• Consistency when an organization sends people to different countries with widely different costs of living
• Helps prevent expatriates from feeling demoted upon their return to the home country because their salary was decreased significantly. It is easier to remove the adjustment made for the change in cost of living and hardship if it is separate from the salary.

Cost of living and hardship adjustments should be based on expatriate life style rather than the life style of local people. Expatriates living in some developing countries may find that local food, basic accommodation, and basic healthcare is relatively inexpensive, while maintaining their old lifestyle with imported food, “expatriate” accommodation, private healthcare, and entertainment/recreation is very expensive. The cost of living for local people is not always the same as it is for an expatriate.

The benefits offered to expatriates are most often better than the benefits offered to local employees, with exception perhaps of places such as the Middle East. Many organizations offer benefits such as tax consultation, relocation, accommodation, transport, visa, immigration, and language training.

Additional benefits that may be negotiated include:
• Cross-cultural training to help manage expatriate expectations by learning more about their future colleagues and local culture.
• A pre-assignment visit can help adjust an expatriates expectations versus the experience of other expatriates in that destination.
• Family benefits: Family adjustment and lifestyle issues are one of the causes of an expatriate not completing their assignment:
o Education for the expatriate’s children is often a deal-breaker for the family to accept an assignment.
o Helping the spouse obtain work.
• Career coaching / mentoring for the expatriate during their assignment, particularly during the first and last six months, and after they return to the home office helps ensure retention and helps manage their expectations for subsequent assignments.
• Repatriation training: Expatriate families and employees can benefit from repatriation training to help readjust to living in the home country and returning to the original work environment. This is often overlooked, while all the focus is on assisting the expatriate adjust to the host country.

A flexible approach to negotiating an expatriate package that is a win-win for both the employee and the organization is required. One size does not fit all!. A young, single accountant has very different expectations and needs compared with an older engineer with a family.

Calculating an appropriate salary package taking into account the existing salary, cost of living and hardship differences, as well as accounting for increased responsibilities may help ensure that the most important needs of prospective expatriates are addressed.

This article may be freely copied as long as reference is made to http://www.xpatulator.com/

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