Expatriate Basics: Negotiating a Benefits Package
This is a copy of the text of a year 2001 email requesting information
regarding the negotiation of a benefits package, this advice will be updated
shortly.
Dear J---
A complete expatriate package should include the following:
1. Relocation expenses such as packing of household materials, shipping furniture
from one location to the other, payment of taxes once the furniture and household
items have been received by customs at the new host country. Use of agent services
to clear your household and personal belongings through customs.
2. Lump sum or reimbursement at $2,500-$10,000 for the purchase of household items
upon your arrival.
3. Assistance finding a new apartment- through the retainment of an agent. Payment
of rent on your new apartment or house to be set at the equivalent amount as your
payments at your home country. Another method would be to set the rental payment
amount as a percentage of your salary- between 10%-35%. Also, if you own a home in
your 'home country' the company should help you re-sell it. Even purchase the property
from you and allow you to purchase it back upon your eventual return.
4. Use driver and or maid-- and or a monthly allowance to offset these costs. Many
expatriates pay for these expenses out of their rental allowance.
5. The purchase or lease of a company auto for your use. Reimbursement for gasoline
for both personal and business use.
6. The payment of tuition for your children to attend private schools.
7. A budget for language lessons for both you and your wife. Also orientation services.
Many expatriates opt out of this benefit-- probably because they are too busy running
the operation. Therefore, try to do the orientation before you arrive!!
8. Spousal employment, acculturation assistance (over 30% of the companies provide
this for the accompanying partner). Some companies also promise to help the spouse
find a job within the same company her husband works-- or even pay/ providte a budget
of upwards of $10,000 to help her re-train, educate herself and bide her time, while
her husband pursues his career.
9. At least one or two airline tickets from host country to home country per year.
10. Hardship bonus or allowance. Many companies are discontinuing this benefit as
they consider life overseas not as challenging as before.
11. Completing the paperwork for obtaining 'work permits' and 'residence permits'
in the host country. Assisting with the 'validation of degrees received in other
countries for use/recognition in host country'.
12. The same health insurance package that you would have received at your home country,
plus the provision to reject host country medical providers and return to your home
country for major operations. Some companies provide 'worldwide' insurance. Reimbursement
for health expenses in any location in the world to include host, home and other
countries (vacationing country for instance).
13. Legal advice. Often directors of host country subsidiaries have 'liabilities'
as a result of operations. Make sure that you are not held financially responsible
for the repayment of debts should your subsidiary go bankrupt or incur legal or financial
obligations.
14. Finally, some expatriates expect the companies to pay all household expenses
to include water, phone, electricity. Others pay for this themselves.
Please remember that the amount of benefits offered to you is greatly determined
by the size of your company and the level of 'commitment' it has or will make to
the successful operation of the entity in the host country. Also, the current trend
is to reduce the period of the overseas assignment, thereby minimizing the overall
costs.
Hope this helps. Stay in touch. And-- please pass my name on to others as an excellent
provider of 'first pass' information.
Good luck in making a solid decision and have a prosperous year-- where ever you
and your family decide to go!!
Yours truly,
Tonya Foust Mead
'Sharing Our Knowledge with You'
Dr. Mead, PhD,
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