Many people have trouble negotiating. I struggle with it, and I do it everyday.
A couple of weeks ago a friend sent me an offer to review. My friend had done a great job driving up the salary offer, but there were gaps in some of the details.
The housing was vague. It got me thinking.
Many organizations believe they have been transparent about the details, and maybe in their own way, they have been.
Never assume organizations are aware of the variables involved in your personal situation is a mistake, and it can cost money and time. As you look at each item being offered in the contract ask yourself if it meets your needs, and, how it can be achieved in your situation.
How difficult will it be for you (and maybe your family) to actually use the benefit?
Consider this basic construct for an expat job offer:
Agreed upon mid-to-high market salary
International Medical Provided
Pension Contribution that is cashed out on departure
Normal long holiday schedule
181 days of employment
Housing is on a stipend; employee finds their own housing; this is adjusted to the family size
Relocation costs partially reimbursed
Now, consider there are two people looking at this- Person A and Person B.
Person A(PA) is single. PA also does not pay taxes on their income in their home country as long as the income overseas is under a certain amount.
Person B(PB) is married and has one child. PB also does not pay taxes in their home country as long as the income overseas is under a certain amount.
PA is happy with the contract above. They can handle a bit of excess fees and expenses. They are not bringing that many items, and, might not even need the entire relocation reimbursement. Many of us use to be PA.
But then…
We became PB.
PB has a few issues. First, the housing. Because they will need a larger allowance, that could push them into a bad home-tax situation. That money for housing is often counted as income. It might be a better situation for the company to rent the apartment/house, and simply allow PB and family to live in the unit.
This could be a point of negotiation, and should be noted as an option.
The other issue with the housing is finding the housing. PA can easily travel about after work and on the weekends to look for places. They can apply their stipend to a nice hotel and buy some additional time. Remember, PA does not have many possessions to worry about.
PB has a family. There is going to be a limited window of time during the week to look for housing. They would likely need a larger rental as well, and the short term rental could exhaust their monthly stipend.
In this situation, and looking only at the housing, PB should ask the company to explain how they support house-hunting; if they can directly pay for short-term housing until something is secure; and if they know how much money is required for the initial deposit.
The company may say ‘No’ to all these requests. They may not.
Zoom out.
Person B has two job offers. The contract terms are the same. However, the second offer agreed to the simple concept of pairing PB with an agent to find housing, and, agreed to help find an affordable short-term accommodation.
The first offer, they declined and said it was not their policy to get involved.
Person B is going to job number two, and avoiding a stress and the probable loss of capital.
If Person A is frugal, they will also lean towards the second offer.
Here are a few things everyone should ask about, and consider negotiating, to meet their situation:
Children’s tuition
Children’s uniforms
How housing is paid if you are from a country that counts housing towards taxable income; are there options for another arrangement if needed?
Shipping reimbursement and what shipping methods are covered
Shipping reimbursement and when it is paid back
If housing is not paid, an agent that works with the company (or has a personal relationship with someone at the company)
If housing is not paid, is there support for deposits, key-money, etc?
Are there other expenses the company reimburses such as for commuting, lunch, etc
In some cases, the answers to these questions form the framework for making comparisons, and in other cases, they provide an avenue to improve your situation.
In a previous article I discuss similar ideas. Read it here if you missed it.
Why is this SubStack called, Pancake on a Stick?
Pancake on a Stick is the single funniest story I have ever heard in my life. In about a year from now, the event will be reenacted and recorded. I named the SubStack after the story, because every time I think of the name, I smile and laugh. This helps with my writing and tone, and makes me always remember the most important things in life.
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Most social media is dead to me, but you can find me on LinkedIn and Youtube.
LinkedIn (A bastion of boredom but mostly on mission)
https://www.linkedin.com/in/tdeprato/
Email
info@tonydeprato.com
My video series on Expat Recruitment is BORING but useful Listen or Watch and you can master this process.