Negotiating the Best Compensation Package for Your International Job Offer

Receiving an international job offer can be exciting, especially if it is your first time venturing abroad for work. However, in the midst of the excitement, it's easy to overlook details that can later on prove to be very costly for you. This is especially so in recent years with expatriates experiencing lower relocation benefits and overall scaled down compensation packages. Nevertheless, if you are good at negotiating, you can still walk away with an attractive expat package befitting your rank and role, thus making relocating all the more worthwhile. Here are some pointers to consider when negotiating an employment relocation package.

Salary and Compensation Package

This is usually the trickiest part of the negotiation. While the salary offered may look very attractive initially, it is important to weigh it against other factors such as the living conditions and the cost of living in the destination country. Moving from the U.S. to Indonesia, for example, may not be the same as moving from the U.S. to Singapore, even though the two countries are in close proximity to each other. Factors such as the level of freedom, security, healthcare services, infrastructure, and even the availability of leisure facilities can all play an important part in determining your quality of life in that country, even as an expatriate. You may also want to think about the cost of living in the host country too, which will definitely be different from country to country.

Armed with the right data, you can legitimately negotiate for a good compensation package taking into account the above factors. At a minimum, you should ask for a base salary (with foreign services premium included) that adequately compensates you for the role you are expected to perform plus a cost-of-living adjustment (COLA) that factors in the cost of living in the new country as an expatriate. If living conditions are harsh, try asking for some hardship payment as well.

Benefits

This is another important aspect of the contract that you should discuss with your employer. Great benefits can improve the quality of life in a foreign country and can sometimes even make up for salary shortfall. The following are some benefits that should be discussed:

Health Insurance

You should make it a point to ask about the medical insurance coverage. Make sure it is extended to your whole family and covers things like emergency treatment and evacuation.

Check too if there are limits you should be aware of and if these limits are sufficient given the healthcare costs in the destination country. If there are copayments required or exclusion clauses, be aware of them too. In short, never assume that all medical insurance plans provide for similar coverage; more often than not, they do not.

While on the topic of insurance, do not omit discussing your life insurance, disability protection and dental insurance coverage.

Vacation and Sick Leave

Your contract should clearly state the number of vacation days and sick leave you are entitled to each year. If it does not, seek clarification. While most expatriates will follow the holiday schedule in the host country, confirm this with your employers as well.

While negotiating your leave, it is also important to discuss the agreed upon arrangements in the event of an emergency back home; you never know when you may need to head home due to a family crisis. And do not forget to ask for your annual complimentary trip home plus a few additional days of vacation to compensate for the time spent in flight.

Housing Allowance

Housing is another issue that has to be sorted out when you’re relocating to a new country for work. Find out if housing costs are included in your contract and the terms of your housing allowance, if applicable. Thereafter, you may want to negotiate for an initial trip to secure your accommodation.

Prior to this trip, have your employer arrange for the services of a real estate professional or relocation specialist to help you locate suitable accommodations. Be sure to let them know your requirements.

Relocation and Associated Costs

Moving costs are another area you will need to discuss. Many employers will provide for this but limits may vary. Make sure that yours does provide this and be aware of your limits, as any excess will likely be borne by you. To know if the limits are reasonable, get an onsite estimate of the moving costs from a reputable international mover. Be sure to include packing and storage costs in the estimate, if needed.

When negotiating moving costs, ensure that they include costs of returning home after the completion of your overseas job.

While it is not unusual for the bulk of your items to be shipped by sea, you may want to have at least one small box of your essential items shipped by air so that they are available on your arrival. Discuss this with your employer openly as well.

Other issues to discuss include insurance (for your goods in transit), customs declaration, and other associated costs. If your family is moving with you, make sure their relocation costs are provided for too.

Education

If you are bringing your children along, remember to discuss their education options. The cost of education at an international school can be very high and may even cut significantly into your salary if it is not taken care of by your employer. Note too that placement in these schools can sometimes be very limited so you may wish to have a spot guaranteed for your children included in your negotiated terms, in addition to having the expenses covered.

Spousal Assistance

Now that you have got your children’s education needs agreed upon, don’t forget spousal assistance. Some companies will either offer to help your spouse find work in the host country or pay some kind of benefit to compensate for your spouse staying at home.

Taxes, Visas, and Work Permits

Taxes can be complicated especially when two countries are involved. Therefore it may be worthwhile to seek the advice of a tax accountant to ensure that you are not paying more taxes than necessary. In addition, some companies are known to settle the taxes for their employees in both countries, and only deducting tax amounts equivalent to what the employees would normally pay in their home countries. Find out if yours does, and, if possible, ask that they pay any tax preparation fees as well.

Taxes aside, do not set off for a new country without knowing who will be responsible for handling your work permit and visa. This should almost always will be handled by your employer.

Negotiating your employment relocation package can sometimes be challenging. That's why it is best to do your homework and know your needs before even negotiating. While your HR department may be helpful, you almost certainly do not want to rely solely on them for information. Instead it may even be wise to make contact with expatriates who are already working in the host country; they can help you know what to expect in terms of opportunities and challenges. Above all, have a clear idea of the terms you are willing to compromise and those that are not negotiable. This will go a long way in expediting your negotiations, helping you secure a good deal, and starting your international move on the right foot.