why are expat relocation packages being downsized in hong kong?

Why Are Expat Relocation Packages Being Downsized In Hong Kong?

Source: www.expatfocus.com

The Pearl of the Orient“Hong Kong has a lot to offer in terms of cultural experiences, infrastructure, diversity, quality of life, safety, education and career opportunities, to name just a few.”

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Expatriate packages

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“The best part is that it offers the 4th highest expatriate compensation packages in the Asia-Pacific region.”

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Expat benefits “Typically, a professional from the US, UK, Canada or Australia at middle management level is likely to make around HK $ 2,070,000 (US $ 266,836; £ 201,759; € 238,790) per annum, plus the usual expat benefits, like accommodation, a car, domestic help and children’s school fees.“4

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Expat pay package drop

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“In the last two years, things have undergone a rather drastic change in this country, which is evident in the fact that the expat pay package has actually dropped by 2% since 2015, rather than going up.”

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Expat Packages in Hong Kong “Some of the top players in the country’s banking and finance sectors are still offering expat managers a relocation package, but these are not as high as they used to be.“

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Localizing Expatriates

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“Industry research shows that since 2004, “localizing” expat compensation has been a highly dominant approach all throughout Southeast Asia, especially in countries like Hong Kong, China and Singapore.”




Things to Consider about Localizing

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#1: Look at this move as a permanent one-way transfer, where your firm is under no obligation to assist you and your family with repatriation to your home country. In most other places, these moves are usually organized and funded entirely by the companies.

#2 : Unfortunately, if your employer decides to place you on a localized package it could be an indication that they don’t value you as much as their full-package expats. In addition to fewer perks and lack of training, it could mean a reduction in your overall status within the firm.

#3 : Being on a localized package makes most people feel in limbo; as if they are neither locals, nor real expatriates.




Localizing Impact on Organizations & Expats

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“More than 75% of the global organizations, including offices in Hong Kong, have implemented at least some of localization policies to reduce the company’s expenses. Of course, not all expats readily accept localized conditions and not all organizations reap the benefits of this strategy.”

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The Local “Plus” Package

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“To counter the adverse impact of reduced packages to expats and prevent loss of good employees, a small percentage (around 27%) of the firms in Hong Kong have started offering a Local Plus compensation package to their expat managers for a transfer period of up to two years.”

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Better than what it was

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“Do bear in mind that expats in Hong Kong enjoy an excellent lifestyle, in spite of the reduction in the budget. In fact, many of them even believe that their quality of life in this country is better than what it was back home.”

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why are expat relocation packages being downsized in hong kong?

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