I was speaking with a colleague the other day about whether I would do an ex-pat assignment again. We were discussing how global our business is and that the demands might require that some of us relocate to various parts of the world. What I told my colleague is that I would, but I would do it differently than we did in this first experience. So, if you are considering a global assignment, these thoughts may help you as you consider the situation.
Define an End Date: We are on a permanent contract with no defined end date. The principle issue with this is we never know when the experience will end. It colors all of your decisions, particularly those that involve purchases that are discretionary. Little things like appliances you do without because you don't want something else that you will have to throw out at the end of your time because they work on 220 rather than 110. An end date gives your stay definition. You can always agree to an extension but without an end date, you always have some level of uncertainty.
The Trailing Spouse: I was worried when we were planning this move. SWMBO had worked full time for the entire time I knew her. She is a bit of an introvert and I was a little worried that she would feel isolated. It turns out that i did not need to worry as she has developed quite a social calendar with language classes, cooking lessons, book clubs, etc. to keep her busy. When you are negotiating, try to negotiate some things in for your significant other like language classes. Anything that will help them assimilate while you are immersed in your work environment.
Do not accept an American Vacation Allowance: We have a typical Belgian vacation allotment and it is perfect. We have met other expats however, who have the standard US 2-3 weeks of vacation. When you are overseas, this is completely unacceptable. The whole point of being an expat is immersing in the new culture and seeing a bit of where you live. With 2-3 weeks of holiday, you will use it going back to the US to visit family and friends and will not have the time to explore.
Negotiate the condition of your return visits: When I signed on, the company agreed to pay for one trip a year back to the US for the two of us, for the first three years of my contract. There were two factors here. First, negotiate the class of travel or negotiate a budget. We were stuck in cattle class for our returns without the possibility of upgrading. Secondly, negotiate for the duration of the contract. When that perk goes away, it is like a salary reduction.
Guarantee your compensation against large fluctuations in currency: This has not happened to us, but it is not too far fetched that if you are being paid in the local currency, that a currency fluctuation could have an impact to your lifestyle. The reason your company wants you there is because they can't find a local to take the position. Make sure they protect you.
Housing: We rent in Belgium and have a lovely old home. In some parts of the world however, I would try to negotiate a housing subsidy or the full cost. Cities like London are incredibly expensive and this can impact your happiness and that of the trailing spouse. Do not underestimate how the housing arrangement can influence your comfort level with the new location. Think about how the location provides access to community or how it might isolate you. It is probably the most important decision you will make.
Taxes: Most people do not realize it, but if you are an American, you must pay taxes on your income in both the country where the income is generated as well as the US. Uncle Sam always gets his cut.
You will likely get help with local taxes from the company but if you don't, negotiate this in. Think about the tax burden of your new country as well as that of the US and negotiate your compensation accordingly. It is likely you will be responsible for a much bigger tax payment than you ever considered in the US.
Would we consider another ex-pat assignment? I think we would. I would probably be looking for someplace a little warmer and drier than Belgium for the next one, but we are enjoying the experience. That being said, there is no place like home and I think after being away for 3 and a half years, going back to the US might be a little like an expat assignment for us. At least for a little while.
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