Dive Brief:
- Even with ongoing issues of market volatility and increased security risks, employers are still expanding globally to compete and grow. When it comes to where they want to operate, however, things are getting expensive, and not all employers are prepared for it, according to a new survey.
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Mercer’s 2016 Cost of Living Survey ranks Hong Kong number one as the most expensive city for expatriates, pushing Luanda (Angola) to the second spot. Zurich and Singapore remain in third and fourth positions, respectively, whereas Tokyo is in fifth, up six places from last year. New York, rated 11th, is the highest ranking U.S. city.
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With that as context, the study found few employers understand and prepare for the impact on cost of expatriate packages. For example, factors including currency fluctuations, cost inflation for goods and services and instability of accommodation prices all affect the cost of expatriate living for employees on international assignments.
Dive Insight:
lya Bonic, president of Mercer’s Talent business, explained that even with today's technology advances and the growing globally connected workforce, employers still need to deploy expatriate employees. It remains a critical component of a global company’s business strategy.
With the potentially high costs of expat assignments, for example, employers need to have accurate and transparent data to compensate fairly for all types of assignments, including even short-term ones.
For companies expanding to Namibia, you are in luck. Mercer ranked Windhoek, the African nation's capital and largest city, as the world’s least expensive cities for expatriates, coming in at number 209.