By Nikki De Guzman:
Human resources consultancy ECA International has launched a National Salary Comparison report which provides a guide on local pay levels among wealth managers across 55 countries.
It allows companies to check whether an individual’s spending power would be maintained if they move to another country and are paid a local salary for the same job.
In a statement, ECA said: “In a globalised business environment, companies are under pressure to stay competitive in a host of different markets at the same time. As mobile workforces become increasingly diverse in terms of the nationalities and levels of seniority involved it is not surprising that ECA research shows an increasing trend towards using more than one approach to calculating appropriate compensation packages.”
Lee Quane, ECA’s Regional Director for Asia, noted: “In an environment of intense competition for suitably skilled staff, companies need to have all the information to hand to determine the most suitable pay approach for their international assignee workforce.”
“This includes being able to compare spending power to assess whether transferring their employees on local terms will provide sufficient remuneration in the new location, or whether additional allowances or an alternative method of salary calculation is necessary.”
The report revealed that relative wealth comparisons may vary from country to country depending on seniority, adding that companies should also take a look at future scenarios like repatriation or consecutive assignments when considering salaries.
“For example, middle managers in Hong Kong and Singapore command significantly larger salaries than their contemporaries in many other Asian countries and enjoy considerably higher buying power. An assignment from either of these countries to elsewhere in the region on a local salary basis is unlikely to be considered competitive unless additional benefits are provided on top.”
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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