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GOODBYE TO EXPAT PACKAGES
Expatriate packages are a thing of the past, with Singaporean employers no longer prepared to pay such elevated prices, reveals a leading recruitment agency.
“A levelling of the traditionally high expatriate packages has definitely been noted in Singapore,” says Chris Mead, General Manager of Hays in Singapore.
“Employers have realised on many occasions that local candidates are just as skilled as expatriate candidates, and so offer an equivalent skill set at a reduced cost. Traditionally, expats brought a wealth of experience and excellent education from abroad to a company. They were valued for their insights and were remunerated accordingly.
“But today’s local employers view expat candidates on an equal footing with local candidates since both possess excellent overseas education and exposure to worldwide markets. So at a time when cost savings are critical, why pay more than you need to for the same skills?
“Local candidates also offer solid succession planning prospects. While in the past expats remained with a company for 20 years, today’s average tenure is closer to three to five years, which makes it hard to justify an expatriate package.”
Chris says the senior recruitment market is one that remains active, and expatriates can still attain positions locally. “A number of new regional offices have recently been established, creating key positions that need to be filled.
“Most companies will still hire expats, but they will be considered equally with local candidates, and they will be offered a local package only. In general the days of lofty packages are gone.”
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