Standard Expat Package Considerations

My company has an opening in the Fleet St. London office for which they are willing to transfer me from our corporate offices in Salt Lake City. I'm currently paid $107K and in SLC that is goes a long way. Being a bit behind the times - I doubt my company has a equitable expat package or a standard for handling the negotiations. In visiting numerous websites, there are too many considerations to take into account. Should I be paid in US or UK currency, what about protection from exchange rate changes, etc. I'm wondering what specifics or advice people have from their experiences.

Normally, in an expat package one would be paid in USD, and get a monthly stipend on top of that for expenses, especially if they're moving where the cost of living is greater.  Your housing would normally be paid for by the company as would commuting costs.

I have a crappy expat deal.

I am basically treated like a local hire. 

I get paid in pounds.

It varies from company to company.  For shorter term placements then very often the contract remains with the overseas employers and the payment stays in the US, but for longer term placements it is often the case that the salary is paid in the UK and in pounds.

Victoria

Though in a slightly different situation...I'm paid in pounds and quite happy about it!  Don't have to worry about flux of US Dollar.

Thanks for all the responses. Although I don't know all the details yet (have an upcoming meeting with our HR in UK), I do know that I'll be paid in pounds. My biggest concern is that relatively speaking - I'll be paying similar amounts in terms of goods, utilities, etc. Since the salary will go down in the UK based on what they are willing to spend (currently 60K per yr in UK), I feel that I'll be losing a lot of buying power when I factor in the increase in rent, etc. So I view it as a potential loss. What experiences have you had and am I missing something in my thought process?

hi there
there was a really similar thread a few days ago about this issue, i'll try and find it and put a link in here.

in the meantime, i'd just emphasise that your nice US salary won't translate as nicely London. It is really expensive here and with the pound as strong as it is now, your dollar won't go far.  perhaps the thing to negotiate on rather than salary is expenses like rent, moving, etc.... if that was covered whilst you are in london then you could effectively bank your us dollars. not sure how feasible that is, but worth considering.

here's the related thread:

http://talk.uk-yankee.com/index.php?topic=21088.0;topicseen

Hi there,
I've just posted a couple responses to similar postings just now. £60K Sterling is about $104K USD - so potentially your earnings are very very similar. You are quite right in that compared to Salt Lake City (im assuming that slc means that!) London is a hell of a lot more expensive! So I see how you'd relate your costs here as a 'loss' for you. In comparison though, £60K is almost three times the national average of £23K - so by most peoples idea, you'll be on a fantastic salary!

At the level you're at, I'd be pretty surprised if your company did'nt give you an allowance for the move, but as every company is different, maybe thats how yours operates. Logistically though, I'd have imagined the move won't be quite as tough, remember UK/USA are English speaking and we share many of the same trains of thought in these company moves of employees.

Like I've said in the other posts, do your research and sums and evaluate what you like in your current lifestyle and compare directly to those same lifestyle choices here in the UK - it may well be you can affrd everything on your 60K salary so as your standard of living remains the same! of course only you know your lifestyle choices!

Overall, good luck and congrats on your move!

Cheers! Dennis! West London & Slough UK!

My job gave me a set fee to use for moving and another fee for expenses when I moved over here...it worked out well as I used them to get my boxes here and then the money to settle I used as my first month rent...I would definitely ask for a sum to move personal items over here and perhaps a sum to help settle in...(it'll help with a six-week payment plus one month you may have to make on a flat)

ewgazz, my friend made $95K in the us.  She made £70K here in the UK and STILL felt like she was spending much much more than in the us.  She had moved here from San Fran. (an expensive place and was still shocked at london living!)

Just to give you her experience.

I also moved over on a job transfer. The policy within my company is that termed assignments are paid in USD (more project oriented positions) and permanent assignments are paid in GBP (UK role with no end date). I was told that if I was paid in USD, it would change how I was taxed, insurance, etc. That's something your HR dept should be able to walk you through. The one thing that has been invaluable that I never would have thought of asking for (its standard in my company) is a car allowance. I use the allowance for transportation costs (train, tube, etc.). Even if you don't plan on getting a car here, transportation can be quite expensive. You might also see if they'll pay for things like a tax preparer (you'll need to pay some US taxes in your tax bracket).

Alright - finally met with HR and got some of the issues straightened out. Here's what I have so far and am wondering how good people on packages view this offer. Personally it seems quite generous of my employer

* Salary: 70K GBP (basically cede employment in us and transfer to UK pty)
* Private healthcare insurance, pension scheme, life insurance, income protection insurance, 23 days holiday
* Relocation budget with cap of 10K GBP (to cover housing costs, travel/transportation, pet costs, etc.)
* Migration Service to assist with Housing (approx 5K USD)
* First 2 months housing paid (hotel or short term serviced stay)
* Access to Ernst & Young for tax advice and tax preparation per each year there
* Return moving costs if anything untoward would happen

Given that - I feel I could spend 1K per month on rent - would that be decent to get a 2 bed flat in an area close to London, but not right in the heart of things where the cost is too high? And any tips on cities/locations.

PS - Thanks for all the tips and advice

Hiya!

70 Grand Sterling! well your on 3 times the national average salary if you accept the position! At that level, you'll be up there in amongst the high to very high earners!

£1000 per month on just rental costs will pretty much allow you to get any 2 bed flat in the Greater London area - and alot will be just a stone's throw from Central London in terms of distance

Take a look at www.rightmove.co.uk and www.fish4homes.co.uk - type in your budget limit of £1000 and have a look what pops up - you'll be able to choose north, south, west or east london - the difficult part will be choosing where !

The rest of the package looks very attractive as well, in short, it's a very generous offer - only you know if the industry you're in if it's a 'good' competitive salary/package

I think for your next questions, you'll need to post up on the relevant sections of this website in order to get opinions on specific elements (where to live etc etc)

Cheers!

Dennis! West London & Slough UK!!

Once again I'll disagree with Dennis a bit...the £1000 will get you a 2 bed flat but it will definitely depend on where you are looking.  South of the river would be your best bet for a decent location for that much space.  But north of the river will not get you 'central' London per se...I know in West Hampstead (which is zone 2) you'd get a large studio flat or a small 1 room for that much.  A two bed flat in zone 2 (northwest) in a decent area costs about £1400+.  So - I'd suggest that you look at a variety of areas.  With what you are getting paid, you could afford more than the £1000...but if you only want to spend that, let the relocation agent know that and how long of a commute you'd be willing to make.  We can help with telling you a bit about a variety of areas.