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Advice on Expat Package

Shanghai Expat Forum Index » City Living Forums » Relocation and Moving

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kappakai

Raver

Joined: Apr 04, 2005
Posts: 417

Status: Offline

Posted: July 25, 2005 - 05:25 AM
Post subject: Advice on Expat Package

Hello all-

I have been given an offer for a position in Shanghai with my current company, a third party logistics company. My position is Sales and Sourcing Administrator, basically two jobs in one, and this is a new venture in China for this company. The company's offer is this:

$41,000/year (a raise over my current salary of $32,000 representing a promotion from my current position of buyer in Charlotte, NC.)
$1350/month housing allowance
2 paid home leaves

I am preparing a counter-offer as follows:

Base salary: $49,000 (rationale: the median salary for a buyer (sourcing) in Charlotte is $49,000)
Cost of living adjustment: 46% (per realtor.com cola calculator http://www.homefair.com/homefair/servlet/ActionServlet?pid=246&previou sPage=245&cid=homefair&fromSalary=100&fromCity=675&toCity=241)
Two paid home leaves, business class, 2 weeks each.
Tax equalization.

I believe that my base salary can be negotiated without a trip, as well as the cost of living adjustment. I will also ask for a fact-finding trip to China to determine the following allowances (estimated costs below)

Housing allowance: 1350/month
Transportation allowance: 250/month

This is my first experience in negotiating a contract, so I am kind of nervous, though I have had advice from my father, who was an expat in Shanghai during the 90's, and a headhunter in China. My position will basically be a sourcing guru for fasteners and automotive parts; I will be looking for suppliers in China for export to the US, then for multinational companies involved in manufacturing in China, mostly in the automotive and trucking industries. I understand I have a strong position in bargaining, as I've been told that I was the only one interviewed for this position (back in March). I also have a backup plan available (graduate school) and the company knows this. I speak Chinese, and read and write some, and am 27 years old.

I guess I'm looking for advice on the above numbers, and whether or not I should negotiate for more (such as an overseas premium or hardship pay). I have already established that I will be a full expat, not semi and not local.

Thanks for your time, looking forward to your advice.

Kai

Michael

Moderator

Joined: Mar 22, 2002
Posts: 5290

Status: Offline

Posted: Aug 13, 2005 - 12:44 AM

If you really want to come and work in China and you are getting a raise anyway.. do the best you can.. but don't miss the boat for a few thousand.

Latte

Barker

Joined: July 12, 2005
Posts: 174

Status: Offline

Posted: Aug 13, 2005 - 05:22 AM

I agree with Michael,

40k + in china IS a raise. Besides, You are not asking for THAT much more than what they are willing to give you. But I say do it since you have the right to counter offer and no one expects you to accept the first offer lying down.

chingy

Talker

Joined: June 03, 2005
Posts: 100

Status: Offline

Posted: Aug 13, 2005 - 10:26 AM

1350 a month housing allowance and two paid home leaves sounds like a pretty generous package for someone that is currenlty making US$ 32,000 a year. ( Not trying to knock your salary . I mean you are not a VP or managing director for Ford or GM. )

I know people with large companies that only get one home leave a year and a housing allowance that is 10-20% of their monthly salary.

Of course everything is open for negotions. But as Michael mentioned don't miss the opportunity for a few thousand dollars. Come here and build up some experience working in China. If your good, money should naturally follow.

By the way. I have heard that it is less common to get hardship pay for Shanghai and Beijing these days.

Good luck.

wildstar

Reacher

Joined: May 15, 2005
Posts: 224
Location: Shanghai
Status: Offline

Posted: Aug 15, 2005 - 01:03 PM

Take it. It's a dream offer. So many people here would give a left nut to have a package like that. You'll be able to live very well here. And save alot of coin too since you'll basically have no living expenses to worry about.

Just make sure you get good international medical coverage in there. Also, make your company do your taxes for you. Since you're under the $90,000 per year mark (which is how much you can deduct for foreign income tax credits), equalization might not be as important, but by law, personal income tax must be calculated and paid to the Chinese Taxation authority on a MONTHLY basis. At least that's what I've been told... hehe, someone just asks me how many days I was out of China each month, and they do the rest, sorry!

Seriously though, good luck man. It's a great opportunity, just don't get too greedy and blow it. Once you get the experience, you can ask for whatever you want...

wakk0

Raver

Joined: Sep 03, 2004
Posts: 393

Status: Offline

Posted: Aug 15, 2005 - 02:32 PM

take it... u dude..
Dun miss the boat.. Wink

Henry_Chinaski
Board Lord

Joined: Aug 16, 2003
Posts: 5025

Posted: Aug 15, 2005 - 02:32 PM

Don't miss it, and coming from a logistics company myself, get ready for a pretty interesting experience that will make the little developed world supply chains look like a boring assembly line. You can be ready for everything they can throw at you after China.

kappakai

Raver

Joined: Apr 04, 2005
Posts: 417

Status: Offline

Posted: Aug 20, 2005 - 08:48 AM

hey all,

thanks for the advice. i've taken the offer. we worked out some details, and changed a few thigns, but i'm more or less happy. i realized it's not about the money necessarily, though it's nice, but rather the opportunity and the learning experience. i'm still young, no family, so i can just up and do this. the job itself is great. i spent the week here in cleveland at corporate, and iknow now i have the full support of the company. i have direct access to upper management, and they're entrusted the future growth of the company in my hands. i'll be doing sourcing, sales, quality, operations... damn, they'll even license me to drive a forklift. i'll be lerning about every aspect of the business. i can't ask for anything more.

i'll be in shanghai in a few weeks, probably by the 15th. first thing is to find a place, been looking at lujiazui. from what my friends have told me, i got enough to work with to live comfortably with. i'd love to meet up with my fellow expats. if any of you are in the area, and are down to meet up, do let me know.

thanks again,

kai