An Expat Package is more than just your salary.
You could be offered Relocation Support to set you up in the host location, and Ongoing Assignment Benefits to assist in your host country living conditions.
Earning higher income is great.
Having Relocation Support is certainly helpful in the early months full of chaos, transition, and administrative effort.
But if you’re being expatriated for more than one year, long-term benefits would give you maximum level of safety and comfort.
Consider your total expat package and negotiate based on your long term needs.
How to Negotiate Your Expat Package
1. Identify Your Big Ticket Needs
Housing Allowance and Tuition Reimbursement are big expense items that would make a significant financial upside if you could ask your company to cover these.
Ongoing Tax Filing support is a small expense to your company that makes a huge difference to your net cash flow.
Most expats don’t realize how much $$$ they would have to pay when moving abroad.
I’ve been managing expat tax return statements for more than 10 years, and I can tell you, DO NOT DIY your tax filing if you could avoid it.
The accounting firms are there to find ways to reduce your tax liability (applying foreign tax credit, double tax avoidance, etc). I highly recommend that you fully utilize their services, and ask a lot of questions during your tax briefing.
Check my previous post for a complete list of possible Expat Cash Allowances and Expat Non-Cash Benefits that you could possibly get.
If you don’t need heavy support on Ongoing Assignment Benefits, then try to leverage for more Relocation Benefits.
2. Negotiate
Communicate your needs. Ask your manager for the expat package that would work best for you.
Provide the reason why you need the additional cash and/or non-cash benefits, why it matters to you.
Emphasize your commitment to the organization, to contributing to its long term success, and the value you would deliver while on-assignment.
3. Execute
Continuously bring value to the organization and get recognized for it.
Your performance affects your position for negotiation.
Deliver on the business objectives and professional development goals.
Do not be forgotten.
Keep your ties with your home country HR and home country manager.
They should keep you in mind during regular and annual performance review, salary review, promotions review.
Do not miss out on opportunities to re-negotiate your package.
Your salary should still be eligible for annual increase, all your allowances should also be reviewed annually or at point of extension.
Pro-actively initiate these conversations through-out your assignment.
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