H
ong Kong often trumps the
lists of the most desirable
expat locations worldwide,
and foreign professionals
working here revel in the news. In a city
boasting great transport links to the
rest of Asia, a standard of living that’s
easy to adjust to, and the fourth-highest
expatriate remuneration packages in
Asia, it seems we have it all.
Yet take a closer look and you’ll
see a shift in the flow of expats arriving
and leaving Hong Kong – a shift that’s
reflected in the nature of remuneration
we are receiving. Quite simply, the
expatriate package in Hong Kong is
changing.
Yves Therien is the general
manager of sales and marketing at Santa
Fe Relocation, a company that often
less bargaining power for expats to
negotiate packages. There are many
locals with experience, including those
who left pre-1997 and have returned
after acquiring foreign citizenship, and
the generous packages of 20 or 30 years
ago have been phased out for all but a
fortunate few.
“If you can get the traditional
expat package that pays for schooling,
housing, amenities and trips back
home, you are doing very, very well.
Some banks still have this, but many
are localising contracts,” Yves says.
“They are providing a much larger
salary which, although taxable, gives the
family the option to choose how they
want to spend it.”
In this new model, expat positions
might still include a housing or lifestyle
assists in moving corporate teams from
the financial sector to and from Hong
Kong. Yves spent four years in his first
spell living in Hong Kong, then two in
Beijing, before moving back to Hong
Kong in 2007. He explains, “Companies
are realising it is expensive to move
people. It costs three to four times their
annual salary – especially if they have
kids. The whole thing is getting more
expensive.”
Diminishing returns
Across all industries, in 2013, it seems
only senior management, such as those
at director, executive director, managing
director and CEO/CFO/COO levels,
are moving to Hong Kong on full
packages. Today, without extremely
specialised skills and knowledge, there is
Are the glory days of the high-paying, all-inclusive
expat package behind us?
Marie Teather
finds out.
October 2013
69
Hardship
post
ing?
