Based on Mercer’s 22nd annual Cost of Living Survey, Hong Kong tops the list of most expensive cities for expatriates, pushing Luanda, Angola to second place.
Zurich and Singapore remain in third and fourth positions, respectively, whereas Tokyo is in fifth, up six places from last year. Kinshasa, ranked sixth, is appearing in the top 10 for the first time, moving up from thirteenth place.
Knowing that the industry expects cross border relocations and assignments to remain strong over the next five years, global mobility managers have to balance setting proper expectations within their company while helping the company find ways to afford getting talent in the right locations. Some of the biggest impacts that contribute to the cost of expatriate packages for employees are currency fluctuations, inflation for goods and services and instability of accommodation prices. Every company is challenged with trying to find the line where the right amount of investment creates the greatest amount of return.
Here are the top 5 most expensive cities by region:
Asia Pacific Region (APAC): Hong Kong, Singapore, Tokyo, Shanghai, Beijing
Europe, Middle east, Africa Region (EMEA): Luanda, Zurich, Kinshasa, Geneva, N’Djamena
The Americas Region: New York City, San Francisco, Los Angeles, Chicago, Honolulu.
For a complete list: https://www.imercer.com/content/2016-cost-of-living-infographic.aspx
“Despite technology advances and the rise of a globally connected workforce, deploying expatriate employees remains an increasingly important aspect of a competitive multinational company’s business strategy,” said Ilya Bonic, Senior Partner and President of Mercer’s Talent business. “However, with volatile markets and stunted economic growth in many parts of the world, a keen eye on cost efficiency is essential, including a focus on expatriate remuneration packages. As organizations’ appetite to rapidly grow and scale globally continues, it is necessary to have accurate and transparent data to compensate fairly for all types of assignments, including short-term and local plus status.”