Tuesday, May 09, 2006
Expat packages dying out as firms hire locals with overseas experience
SINGAPORE : Expatriates on "fat cat" packages seem to be a dying breed here in Singapore.
Instead, we have evidence more firms are opting for local-born executives with overseas experience.
That is because firms are keen to manage fixed costs, despite the economy being on the rebound
Club memberships, company cars and free flights home.
Just three years ago, over half of more than 100 companies Watson Wyatt surveyed gave expatriates so-called "hardship" allowances for overseas postings in Singapore.
Today, less than one-fifth of such companies now offer those same perks.
Expatriates in Singapore today are likely here on short-term contracts to perform a specific task.
And if they choose to stay, they will be urged to take on a salary and benefit package closer to local terms.
"They are coming in different forms. They are coming in as short-term assignees, as extended business travellers and as localised package expatriates," said Kenneth Kwek, Asia managing director of Cendant Mobility.
Human resource professionals say mid-level foreign managers are now usually paid their home country salary plus some housing allowance and adjustments for costs of living.
But they say this doesn't spell the end of expatriates in Singapore.
"Companies who tend to bring in expats have to do it because there's a scarcity of such skill-sets in Singapore. And typically, they come in with a clear mandate to transfer the skills and knowledge to the local team," explained Kwan Chee Wei, managing director of Watson Wyatt Singapore.
"In a way, you get the best of both worlds. You have someone who knows the culture and network in Singapore and someone who's actually well-connected with the corporate head office. We see that as a trend going forward," he added.
Consultants say there are no hard figures for local hires in top managerial positions in Singapore.
But they say they are seeing anecdotal evidence in companies such as Microsoft and Hewlett Packard, and in the financial sectors.
Instead, we have evidence more firms are opting for local-born executives with overseas experience.
That is because firms are keen to manage fixed costs, despite the economy being on the rebound
Club memberships, company cars and free flights home.
Just three years ago, over half of more than 100 companies Watson Wyatt surveyed gave expatriates so-called "hardship" allowances for overseas postings in Singapore.
Today, less than one-fifth of such companies now offer those same perks.
Expatriates in Singapore today are likely here on short-term contracts to perform a specific task.
And if they choose to stay, they will be urged to take on a salary and benefit package closer to local terms.
"They are coming in different forms. They are coming in as short-term assignees, as extended business travellers and as localised package expatriates," said Kenneth Kwek, Asia managing director of Cendant Mobility.
Human resource professionals say mid-level foreign managers are now usually paid their home country salary plus some housing allowance and adjustments for costs of living.
But they say this doesn't spell the end of expatriates in Singapore.
"Companies who tend to bring in expats have to do it because there's a scarcity of such skill-sets in Singapore. And typically, they come in with a clear mandate to transfer the skills and knowledge to the local team," explained Kwan Chee Wei, managing director of Watson Wyatt Singapore.
"In a way, you get the best of both worlds. You have someone who knows the culture and network in Singapore and someone who's actually well-connected with the corporate head office. We see that as a trend going forward," he added.
Consultants say there are no hard figures for local hires in top managerial positions in Singapore.
But they say they are seeing anecdotal evidence in companies such as Microsoft and Hewlett Packard, and in the financial sectors.
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// posted by Shajahan @ 10:03 AM 