Just because your Uncle Ernie got a mansion, a driver and megabucks during his stint in Hong Kong in the 1970s doesn't mean that you're going to get all the cushy perks. Companies are harder on their expats these days and most people find that they're spending a LOT of time doing their own research and negotiating with their company.
Remember, this IS a negotiation as it will lead to a signed contract between you and your employer. Many people miss that point and it's an important one. It's not a "done deal" until the ink is on the contract.
Unless your company is in the business of transfering expats around (say, Royal Dutch Shell), you're probably in a company where there are very few expats. Otherwise, you'd be on your company's web site and just accepting whatever drivel they're feeding you.
You, however, are smart and are looking around at others on this site to gain an advantage. This is a good thing, isn't it?
Once your company has made the offer, the negotiations are in play. Don't just accept what's on the table, go for more. Get quotes for living costs, details about living conditions and all the COLA details you can gather. We went to 3 different relo companies and got quotes for assistance packages. We used this to help craft a better package at the end of the day. We didn't get all the nice stuff, but we got more than the company was originally offering.
Getting a bump in your base salary during the has more to do with COLA estimates than anything else. Get multiple COLA estimates and assume a range from +/- 10% of the different views on COLA adjustments. The reason for this is that most adjustment recommendations are too high or too low depending upon the timing of the update. Use these numbers to negotiate.
Understand the tax implications if you're going to be paid locally. Make sure you are "grossed up" so that your net is (at least) equivalent.
If you're going somewhere where the currency is cheaper than your home currency, don't "go local" without a fight. The argument is that your job is global and is on a global pay scale, not the local scale. For example, an Englishman going to Australia should not accept a paycut because Australians doing similar jobs are paid that wage. You are paid your wage regardless of location. ONLY go UP and never go DOWN!
Housing allowances vary from company to company. We didn't get one. If you can, get as much as possible. It's much more typical to receive an allowance than not to receive one. In the UK, get them to pick up your council tax as well as it's tied to the person(s) occupying the property at the time the tax is due and not down to the owner.
Other points for negotiations:
* International school fees
* School fees for the trailing spouse
* Job search assistance for the trailing spouse. If you're the traditional 2-income home, somebody is losing a job in this process. You can use this point to get a bump in salary to ease your pain and use this negotiating point to help your spouse during the assignment. Consider tying this to the school fees (in case you don't find a job, it might be time to that degree you've always wanted!).
* Home leave
* A specific ex-pat health insurance plan
* Repatriation
* Monies for new electrical home goods (your TV at home probably won't work wherever you're going)
* If paid in your home currency, pegging your salary to a base conversion point and changing it periodically so that you don't have to deal with the difference (very true in the UK where the cost of a dollar to buy a pound has gone from 1.50 to 2.02 in four years - that would be a 33% reduction in salary without a nice peg in place)
* Temporary housing (to/from)
* Moving/Storage goods allowance (to/from)
* Shipping pets (to/from)
* Foreign service premium. Although not seen as often in the UK, many organizations still pay these extra bonus lump sums at the begining and end of the assignment. Think of this as a bonus for successful completion of the overseas assignment. This was originally designed to help expats get over separation from family and friends, cultural adjustment, potential career risk worries, etc.
* Visa/Documentation costs
* Medical exam/immunization costs
* House hunting trip (to the assignment and upon repatriation)
* Income tax equalization
- If you're American, this is critical because the USA and Vietnam are the only countries that require their citizens to file tax forms in their home country as well.
- If you're not American, consider the tax and national insurance implications as appropriate
* Capital gains tax payments. If your assignment runs over the initial time, you may find yourself doing things with investments in your home country because of your new life in the host country.
* Holidays. 2 weeks a year in the US seems normal, but in the rest of world it's insanity. Negotiate for a holiday period that reflects the working environment of your host country.
* US Social Security Payments (ignore if you're not American). If you're paid in the local currency, you're putting into the National Insurance here in the UK BUT NOT INTO THE US SOCIAL SECURITY system. Get them to pay in back home or you'll see your high-earning years not credited to your social security payout on retirement. Of course, if you don't care then don't bother - the UK pension system will pay out as well.
* Phones. Seems simple, but mobile phones are difficult to get if you don't have credit in the country. Get them to pay for phones for the whole family, up to some reasonable limit.
* Relocation company assistance. These people are invalualbe. Get the company to pony up for this help as the means to ease you into your role without all the other hassles the move will be to you and your family. You'll be up and working faster rather than sorting out the electricity hookup.
* Other perks include company car or annual transportation around London for you and your family. We know of one investment banker who has a caddy on retainer at St Andrews - be inventive here as you can't get what you don't ask for; but, be reasonable in light of what you do for your company (if you bring in 30% of your company's revenue you can get a little wild in the other category - if not, don't get too greedy).
Some further interesting notes about salary negotiation come into play when negotiating an expat package. This article, and especially the links at the bottom of the article, may be helpful reminders in such situations:
http://www.state.gov/m/dghr/flo/c21638.htm
Well, these are the top of mind considerations for a full package. Anybody got any more?
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