Relocation Consulting - A Whole New Ballgame
If your job is to help people relocate then this is article is for you.
The latest cost of living survey results out for 2014 show that the cheapest places on the global markets are not really cheap for expats.
With more and more companies looking at the emerging markets, relocation has become an everyday term in most multinational firms.
Gone are the days when people remain in one job their entire lives or move within their own country.
Now they are not only moving across the globe and are also readily taking up positions in places known for being medium to high hardship locations.
These positions are being filled and more projects are being set up across harsher environments or not so comfortable socio-political zones.
Then there is the appeal of cities such as LA, New York or Switzerland which will always attract people, no matter how high the cost of living.
Salaries and compensation differ between companies and from one region to another.
If a company wants to retain its talent and curb attrition rates in these trying times, then it has to ensure ongoing career opportunities and growth as well as the right employment benefits.
It is the responsibility of the HR department to keep itself updated on changes in the locations under their purview and offer benefits that will make for a comfortable expat transition.
Some of the key benefits include - · Attractive salary packages · Medical and other insurance coverage · Guidance on family, education and social life · Information on the socio-political and economic situation of the location · Growth opportunities within the region and company The Internet and advances in technology have opened up opportunities and markets to global competition.
Therefore, it has become even more imperative for companies to attract and retain the best talent in their fields.
In order to do so, they need to offer competitive packages to their employees who are the face of the company across the globe.
The cities of Zurich and Geneva are still within the top five most expensive expat destinations, this is mainly due to the high living expenses for expats with a strong and stable currency and lower rentals than last year ever before.
Luanda in Angola may show a fall in its currency and an apparent low cost of living, but in reality rising inflation and the high cost of imported goods have ensured that it is the most expensive expat destination worldwide.
Caracas in Venezuela, is the fourth most expensive for expats due mainly to the massive increase in the inflation rate (between 30 and 40%) in 2013 and severe shortages of imported goods.
Asian markets are booming and attracting talent however places such as Tokyo and Singapore still rank high due to their high rental costs.
Companies have to ensure that they offer good compensation for these cities and maintain a healthy bottom line at all times.
Which means, ideally every zone should work as a profit center for them.
Therefore, the packages that they offer should not compromise their financial stability or their employees', despite the changes in inflation and import expenses.
The cost of living variances can be determined by using the correct mobility calculator -- Salary Purchasing Power Parity, Cost of Living Index, Cost of Living Allowance or International Assignment Management.
The latest cost of living survey results out for 2014 show that the cheapest places on the global markets are not really cheap for expats.
With more and more companies looking at the emerging markets, relocation has become an everyday term in most multinational firms.
Gone are the days when people remain in one job their entire lives or move within their own country.
Now they are not only moving across the globe and are also readily taking up positions in places known for being medium to high hardship locations.
These positions are being filled and more projects are being set up across harsher environments or not so comfortable socio-political zones.
Then there is the appeal of cities such as LA, New York or Switzerland which will always attract people, no matter how high the cost of living.
Salaries and compensation differ between companies and from one region to another.
If a company wants to retain its talent and curb attrition rates in these trying times, then it has to ensure ongoing career opportunities and growth as well as the right employment benefits.
It is the responsibility of the HR department to keep itself updated on changes in the locations under their purview and offer benefits that will make for a comfortable expat transition.
Some of the key benefits include - · Attractive salary packages · Medical and other insurance coverage · Guidance on family, education and social life · Information on the socio-political and economic situation of the location · Growth opportunities within the region and company The Internet and advances in technology have opened up opportunities and markets to global competition.
Therefore, it has become even more imperative for companies to attract and retain the best talent in their fields.
In order to do so, they need to offer competitive packages to their employees who are the face of the company across the globe.
The cities of Zurich and Geneva are still within the top five most expensive expat destinations, this is mainly due to the high living expenses for expats with a strong and stable currency and lower rentals than last year ever before.
Luanda in Angola may show a fall in its currency and an apparent low cost of living, but in reality rising inflation and the high cost of imported goods have ensured that it is the most expensive expat destination worldwide.
Caracas in Venezuela, is the fourth most expensive for expats due mainly to the massive increase in the inflation rate (between 30 and 40%) in 2013 and severe shortages of imported goods.
Asian markets are booming and attracting talent however places such as Tokyo and Singapore still rank high due to their high rental costs.
Companies have to ensure that they offer good compensation for these cities and maintain a healthy bottom line at all times.
Which means, ideally every zone should work as a profit center for them.
Therefore, the packages that they offer should not compromise their financial stability or their employees', despite the changes in inflation and import expenses.
The cost of living variances can be determined by using the correct mobility calculator -- Salary Purchasing Power Parity, Cost of Living Index, Cost of Living Allowance or International Assignment Management.
Source...