What exactly is Hardship? This is the relative difference an expatriate and their family are likely to experience and the relative impact on their lifestyle when moving between different locations. Measuring the relative quality of living in each location, and assessing the level of difficulty that will be experienced in adapting to each location.
These can include: Economic, Political, Religious, Public Service, Environment/Climate, Personal Safety, Health, Education and Transportation Factors.
The latest Xpatulator.com cost of living survey results out for 2014 show that the countries that are the cheapest on the global markets are not actually cheap for expats.
With more and more companies looking at emerging markets, relocation is becoming more prevalent in most multinational firms and more projects are being set up across harsher environments or not so comfortable socio-political zones. There is also the appeal of cities such as LA, New York or Switzerland which will always attract people, no matter how high the cost of living. Salaries and compensation differ between companies and from one region to another.
- Attractive salary packages
- Medical and other insurance coverage
- Guidance on family, education and social life
- Information on the socio-political and economic situation of the location
- Growth opportunities within the region and company
Luanda in Angola is the most expensive expat destination internationally and although it shows a fall in its currency and an apparent low cost of living, in reality rising inflation and the high cost of imported goods have ensured that it is the most expensive expat destination worldwide. Caracas in Venezuela, is the fourth most expensive for expats due mainly to the massive increase in the inflation rate (between 30 and 40%) in 2013 and severe shortages of imported goods.
and salary packages that are offered should not compromise their financial stability or their employees’ ability to maintain their standard of living in their new location.