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More expats offered local pay packages
Firms mindful of costs despite recovery; some try to hire locals first
By Amanda Tan
EVEN before American Michael Fung, 45, moved to Singapore last month to take up a new job at an American multinational corporation, he had already contacted a relocation services firm here.
He needed help to look for housing and a school for his children, aged 12 and 15.
The only relocation assistance he received from his company was a one-month stay at a hotel here. But the compliance manager said he was not surprised. 'I did my research and spoke to other expat friends and I found out that's the trend now as companies are trying to save some money,' he said.
Expatriates like him used to enjoy the full benefits of a premium expatriate package, which included perks such as allowances for housing, schooling and club memberships.
But increasingly, scores of foreign employees here are now seeing their plump expat packages being trimmed down, a trend that became more common in Singapore and countries in the region during the 2009 global economic crisis.
A survey of 200 companies that year, conducted by HR consultancy ECA International, showed that 21 per cent of the expatriate employees in Singapore accepted local terms.
Another HR consultancy, ORC Worldwide, polled 36 multinational companies here and found that two-thirds offered 'local plus' packages - local pay, but with some perks such as partial housing or education allowances.
While experts could not put an exact figure on the number of expatriates here on local packages now, they said that the number has definitely increased.
Ms Deborah Sawyer, managing partner at executive search firm Odgers Berndtson Singapore, estimates that 80 per cent of middle-management staff, or those earning about $120,000 to $150,000 annually, are on local or local-plus terms.
And even as the economy recovers from the downturn, expat packages have not made a return, especially for middle-management staff. Those who moved here in recent years are also likely to have been offered local terms from the outset.
Companies are very cost-conscious despite the economic recovery, said Ms Peony Lim, director of sales and marketing, engineering and supply at recruitment agency Robert Walters.
'For mid-management positions, there is still a reluctance to offer a full expat package,' she said.
KPMG Singapore is one company which does not offer expat packages. But the company provides 'generous relocation benefits and support' for foreigners, said Mr Stephen Tjoa, the HR partner there.
'We hire and reward employees based on their capabilities, performance and the value they bring to the table regardless of where they come from,' he said.
In fact, some companies are now pruning expat packages to try and hire locals first, said Mr Josh Goh, assistant director of corporate services at The GMP Group, a recruitment agency.
'The Singapore workforce is increasingly educated - this means locals are now better qualified and equipped with the necessary skills, knowledge and experience,' he said.
'Singapore's diversification into newer and niche industries has also helped to create the opportunity for locals to take on such leadership positions.'
With the qualifying salary for Employment Pass holders set to go up by as much as $1,000 from July 1, companies here may think harder before they hire foreigners to fill positions.
Despite the cutbacks, Singapore remains an attractive destination for expats, industry experts and foreigners said. Singapore's infrastructure, environment and safety are big pull factors for expats, said Mr Goh.
'This has made it easier for companies to attract expats to take up a position in Singapore without having to offer the extra allowances,' he added.
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Firms mindful of costs despite recovery; some try to hire locals first
By Amanda Tan
EVEN before American Michael Fung, 45, moved to Singapore last month to take up a new job at an American multinational corporation, he had already contacted a relocation services firm here.
He needed help to look for housing and a school for his children, aged 12 and 15.
The only relocation assistance he received from his company was a one-month stay at a hotel here. But the compliance manager said he was not surprised. 'I did my research and spoke to other expat friends and I found out that's the trend now as companies are trying to save some money,' he said.
Expatriates like him used to enjoy the full benefits of a premium expatriate package, which included perks such as allowances for housing, schooling and club memberships.
But increasingly, scores of foreign employees here are now seeing their plump expat packages being trimmed down, a trend that became more common in Singapore and countries in the region during the 2009 global economic crisis.
A survey of 200 companies that year, conducted by HR consultancy ECA International, showed that 21 per cent of the expatriate employees in Singapore accepted local terms.
Another HR consultancy, ORC Worldwide, polled 36 multinational companies here and found that two-thirds offered 'local plus' packages - local pay, but with some perks such as partial housing or education allowances.
While experts could not put an exact figure on the number of expatriates here on local packages now, they said that the number has definitely increased.
Ms Deborah Sawyer, managing partner at executive search firm Odgers Berndtson Singapore, estimates that 80 per cent of middle-management staff, or those earning about $120,000 to $150,000 annually, are on local or local-plus terms.
And even as the economy recovers from the downturn, expat packages have not made a return, especially for middle-management staff. Those who moved here in recent years are also likely to have been offered local terms from the outset.
Companies are very cost-conscious despite the economic recovery, said Ms Peony Lim, director of sales and marketing, engineering and supply at recruitment agency Robert Walters.
'For mid-management positions, there is still a reluctance to offer a full expat package,' she said.
KPMG Singapore is one company which does not offer expat packages. But the company provides 'generous relocation benefits and support' for foreigners, said Mr Stephen Tjoa, the HR partner there.
'We hire and reward employees based on their capabilities, performance and the value they bring to the table regardless of where they come from,' he said.
In fact, some companies are now pruning expat packages to try and hire locals first, said Mr Josh Goh, assistant director of corporate services at The GMP Group, a recruitment agency.
'The Singapore workforce is increasingly educated - this means locals are now better qualified and equipped with the necessary skills, knowledge and experience,' he said.
'Singapore's diversification into newer and niche industries has also helped to create the opportunity for locals to take on such leadership positions.'
With the qualifying salary for Employment Pass holders set to go up by as much as $1,000 from July 1, companies here may think harder before they hire foreigners to fill positions.
Despite the cutbacks, Singapore remains an attractive destination for expats, industry experts and foreigners said. Singapore's infrastructure, environment and safety are big pull factors for expats, said Mr Goh.
'This has made it easier for companies to attract expats to take up a position in Singapore without having to offer the extra allowances,' he added.
[email protected]
