Expatriates employed with multinational firms in Hong Kong enjoy benefits worth seven times more than locally hired workers, the highest disparity in the Asia-Pacific, a survey showed yesterday.
The primary reason for the discrepancy was the cost of living in Hong Kong, which despite having fallen since the 1997 to 1998 Asian financial crisis, remained the highest in the region, said Elaine Ng, consultant at HR Business Solutions (Asia), who conducted the survey.
An expatriate company head hired to work in Hong Kong is provided average annual housing benefits worth US$178,000 compared with US$93,300 in Singapore and US$80,000 in China.
Ng noted that firms tended to transfer staff from overseas headquarters when seeking people to fill senior positions because "they were more trusted."
Therefore to attract foreigners, firms would need to offer similar benefits that they would be accustomed to at home.
"We found housing was a major component in why the difference between Hong Kong expatriates and locals was the highest. The cost of housing in Hong Kong is significantly higher than say Singapore -- perhaps double," the survey said.
"So a foreigner coming over from the US or Singapore where they reside in a big house will expect the same in say Hong Kong where the cost is higher," it added.
Many multinational companies still used lavish benefits as a means to entice foreign workers to senior positions leading to a wide difference in employment packages between expatriates and similarly qualified local staff. However, the added costs could place added pressure on businesses, the report warned.
Taking into account, housing, the education of children, club memberships, car and travel, Hong Kong expatriate executives received 106 percent in perks relative to their basic salary, or seven times more than locals who received just 15 percent.
The expatriate figure was 72.6 percent in Singapore compared to 13.7 percent of locals, or just over five times more, similar to Japan which had figures of 79.3 percent and 15.8 percent.
In Taiwan the ratio for expatriates relative to basic salary was 47.9 percent against 24.2 percent for locally hired staff.
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