Grass is greener for expat workers

Looking for a bump in your pay? Try Jeddah or Geneva. But if you’re looking for lifestyle, New Zealand is a better bet.

Expatriates moving to Switzerland — home to some of the biggest private banks, commodity traders and pharmaceutical companies — earn an average of more than US$193,000 ($268,000). That’s the highest in the world, and 54 per cent more than if they’d stayed at home, says a study this week from HSBC Holdings.

That boost in remuneration is surpassed only by the 58 per cent increase enjoyed by expats relocating to Saudi Arabia, according to the annual HSBC Expat Explorer report.

Switzerland leads HSBC’s economics ranking — measuring issues from personal finances and career progression to the strength of the local economy — for the third year in a row. However Singapore tops the overall country rankings for the third year, followed by Norway and New Zealand in third place.

The city-state, where foreigners make up more than 60 per cent of the population, derives its top ranking by also scoring well in categories for experience and family.

New Zealand was near the bottom of the heap for disposable income, 43rd out of the 46 countries surveyed, but did well in categories such as work/life balance, entrepreneurship, healthcare and politics.

While a fat wallet helps, it can’t always buy bliss. Switzerland dropped to No. 11 in HSBC’s overall expat country rankings because of low ratings in the experience and family categories.

Those categories also dragged down Saudi Arabia to 40th in the overall ranking, just ahead of China. Goldman Sachs chief executive Lloyd Blankfein last week said Saudi Arabia must address cultural differences with the West to attract more foreign workers as it seeks to diversify its economy away from oil.

Britain dropped 13 places to 35th in HSBC’s overall ranking from 2016, falling behind Poland, South Africa and Turkey as Brexit drained expat confidence in the country’s political and economic prospects.

The US climbed three positions to 27th, topping the survey for career progression, but scoring relatively poorly for the ease of setting up, which includes organising health care and finding accommodation.

In general, moving abroad is financially rewarding, with expats increasing their income by an average of 25 per cent, according to HSBC’s survey of more than 27,500 people from 159 countries and territories.

“From home ownership to retirement preparation, expats can achieve their lifelong goals more quickly,” Blackburn said.