Global Conditions Driving Up Costs Of Expatriate Packages

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    Currency fluctuations – driven by economic and political unrest – are contributing to the cost of expatriate packages, says Mercer in its ‘21st annual Cost of Living Survey.’ The survey finds that factors including instability of housing markets and inflation for goods and services impacts significantly the overall cost of doing business in a global environment. “Sending employees abroad is necessary to compete in markets and for critical talent, and employers need a reliable and accurate reflection of the cost to their bottom line,” says Ilya Bonic, senior partner and president of Mercer’s talent business. This year, Asian and European cities – particularly Hong Kong, Zurich, Singapore, and Geneva – top the list of most expensive cities for expatriates. The costliest city for the third consecutive year is Luanda, the capital of Angola. Bonic says, “Aligning workforce and mobility strategies by ensuring the right employees are in the right places is more critical than ever to manage globalization. And, properly compensating employees on international assignments is as important as it is costly.”