RELOCATION PRACTICES

FOR INCOMING GLOBAL TALENT TO SINGAPORE

International Manpower Division
January 2011
RELOCATION PRACTICES FOR INCOMING
GLOBAL TALENT TO SINGAPORE
A study commissioned by the Ministry of Manpower
Survey report prepared by PwC International Assignment Services
COPYRIGHT NOTICE
Copyright The Government of Singapore. All rights reserved. No part of
this Report may be reproduced, stored in any retrieval system, or
transmitted, in any form or by any means, whether electronic or mechanical
including photocopying and recording, without the permission of the
Ministry of Manpower. All enquiries seeking any such permission should be
addressed to:-
Director
International Manpower Division
Ministry of Manpower
18 Havelock Road #04-03
MOM Building
Singapore 059764
Republic of Singapore
Fax: 65362496
Email: mom_imd_cr@mom.gov.sg
Table of Contents
1 Relocation Practices for Incoming Global Talent to Singapore 5
1.1 Objectives of the study 5
1.2 Research methodology 6
1.3 Employee categories 6
1.4 Survey participants 7
2 Key Survey Findings 9
2.1 Types of relocation support 9
2.2 Relocation support provided to foreign executives on expatriate / non-expatriate terms 9
2.2.1 HR briengs 10
2.2.2 Pre-assignment familiarisation trips and orientation/settling-in programmes 11
2.2.3 Relocation airfare and shipment, temporary accommodation, departure management 11
2.2.4 Immigration and tax services 12
2.2.5 Lump sum relocation allowance 13
2.2.6 Home search assistance 15
2.2.7 School search assistance 15
2.2.8 Spousal assistance 16
2.3 Relocation support provided to Returning Singaporeans 17
2.3.1 HR briengs Returning Singaporeans/SPRs 18
2.3.2 Relocation assistance Repatriating Singaporeans/SPRs 18
2.3.3 Relocation Assistance Singaporean/SPR New Hires 18
2.3.4 Re-integration support 20
3 Global Mobility Considerations for Singapore Based Companies 20
3.1 Global talent attraction and retention strategies adopted 21
3.2 Compensation package considerations for foreign executives on non-expatriate terms 22
3.2.1 Housing 22
3.2.2 Dependent education 23
3.2.3 Pension 23
3.2.4 New hires on non-expatriate terms receiving limited relocation support 23
3.3 Compensation package considerations for Returning Singaporeans 24
3.4 Key challenges faced in global talent attraction and retention 24
3.5 Pension benets as a longer-term retention tool 25
3.6 Alternative support models 25
3.7 Further Tax Deduction (FTD) Scheme 26
4 The Future Role of HR 27
5 Managing a Mobile and Diverse Workforce 28
6 Glossary of Terms 29
7 Use of this Report 33
4
1 Relocation practices for incoming global talent to Singapore
Singapore has enjoyed unprecedented success in attracting businesses to set up here, largely as a result of its reputation
as a safe, transparent, cosmopolitan, business friendly location. These businesses have brought global talent with them as
well as recruited from the local talent pool.
As companies based in Singapore continue with their expansion and globalisation plans, they will inevitably need to look
for talent beyond Singapores borders.
Whilst having a global and mobile workforce is now recognised as a critical component for the success of multinational
companies doing business internationally, managing the global workforce does have its own unique challenges.
The HR function of many Singapore based companies has increasingly been faced with having to manage a global and
diverse workforce, challenging HR systems, policies and competencies in the process.
In a bid to attract foreign talent to Singapore, competitive relocation policies are an essential starting point for companies
set on attracting the talent they need to relocate to Singapore. Increased awareness of relocation and assimilation issues
specic to foreign executives and Returning Singaporeans may highlight the importance of proper support at the relocation
stage which would certainly help with longer term retention prospects.
A longer term view of relocation costs should be adopted, evaluating against the return on investment and possible
turnover, recruitment, retraining costs which may occur as a result of lack of support at the beginning.
1.1 Objectives of the study
The Singapore Ministry of Manpower (MOM) commissioned a study in March 2010 aimed at understanding relocation
practices currently adopted by Singapore based companies in relation to global talent. MOM appointed PwC International
Assignment Services (PwC IAS) to conduct this study.
For the purpose of this study, the following denitions in relation to global talent have been adopted:
fo|e|u Eecu|.es l|oess|oua|s w|o a|e o|e|u ua|oua|s w|o |a.e |e|ocaed o '|uapo|e e||e| ou epa||ae
or non-expatriate terms. They should be in possession of recognised qualications and skill sets and an Employment
Pass.
Reu|u|u '|uapo|eaus /u o.e|seas '|uapo|eau o| '|uapo|e le|raueu Res|deu ('lR) w|o |as |eu|ued o
work in Singapore (either repatriating at the end of an overseas assignment or a new direct foreign hire).
The objectives of the study are to:
uude|saud |ow cu||eu |e|oca|ou p|ac|ces o '|uapo|e based corpau|es corpa|e o |e|oca|ou p|ac|ces
adopted by companies globally
F||||| |e |e, c|a||eues '|uapo|e based corpau|es ace |u a|ac|u aud |ea|u|u |oba| a|eu
l|o.|de a eue|a| o.e|.|ew o poss|b|e |e|oca|ou bes p|ac|ces w||c| '|uapo|e based corpau|es ra, w|s| o
consider in attracting, managing and retaining global talent
5
1.2 Research methodology
121 companies participated in the on-line web survey entitled Relocation practices for incoming global talent to Singapore
carried out over 3 weeks between February and March 2010. Participants were asked to respond based on the information
available to them at the point of time when completing the survey. All responses were collated and aggregated to ensure
condentiality of data.
The questionnaire used to collect data was organised into four main sections: Section 1 Managing Foreign Executives
Section 2 Relocation Assistance for Foreign Executives
Section 3 Attracting and Retaining Foreign Executives on Non-Expatriate Terms Section 4 Returning Singaporeans
The denitions of key terms used throughout this report and the survey can be found in the Glossary of Terms.
The survey results on local relocation practices were then analysed and benchmarked against global relocation practices
based on existing PwC proprietary data and reports which include but are not limited to the following:
lwC's C|oba| lue|ua|oua| /ss|ureu lo||c, 'u|.e,
1
PricewaterhouseCoopers 13
th
Annual Global CEO Survey
2
Geodesy a PwC and Craneld School of Management international mobility research initiative.
PricewaterhouseCoopers Saratoga global database of human capital benchmarking and performance metrics
studies
Talent Mobility 2020 The next generation of international assignments
3

1.3 Employee categories
Employee types covered in the survey can be divided into ve main categories:
fo|e|u Eecu|.es ou Epa||ae !e|rs
New Foreign Sourced Hires on Non-Expatriate Terms
Intra-Company Transferees on Non-Expatriate Terms
Returning Singaporeans - Repatriating
Returning Singaporeans - New Hires
1 An on-going global survey on Expatriate Tax and Compensation Policies conducted by PwC since 1992. Reference to key statistics from the survey (data extracted
in January 2010) has been made throughout this report. The January 2010 survey data is reective of relocation practices of 396 companies globally and has been
used in this report to determine global relocation practices where corresponding statistical data has been available.
2 A survey conducted with 1,198 global CEOs in 52 countries between August to November 2009 to gain their insights and perspectives on the business
environment and global economy.
3 A PwC report released in April 2010 that explores the issues of future talent mobility based on PwCs global survey database of 900 companies, scenario planning
studies, data based on interviews with millennials and key PwC talent mobility specialists globally.
6

Figure 1



Table 1

Categories Count
Foreign Executives on Expatriate Terms 102
New Foreign Sourced Hires on Non-Expatriate Terms 89
Intra-Company Transferees on Non-Expatriate Terms 73
Base responses 121


Table 2

Categories Count
Returning Singaporeans - Repatriating 47
Returning Singaporeans - New Hires 42
None 32
Base responses 121
1.4 Survey participants
HR professionals from 121 Singapore-based companies participated in the survey.
96 of the participating companies are multinational companies (MNC) and 11 are Government / Government-linked
companies.
38% have their global headquarters in North America, 24% in Western Europe, 21.5% in Singapore and 9.9% in Asia
(excluding Singapore). The survey results also showed that 67 companies have chosen Singapore as their regional
headquarters.
Participating companies have been categorised into industry groups according to their main business.
7
Figure 2



Figure 3


























0% 0%
8
2 Key survey ndings
In this section, the key survey ndings in relation to common relocation practices in Singapore have been outlined. Wherever
possible, a comparison of local relocation practices against global relocation standards based on PwCs proprietary data
has been highlighted under the sub-heading Global Relocation Practices.
2.1 Types of relocation support
When conducting the survey to determine current relocation practices of Singapore based companies, the more
common relocation support elements were identied and focused on in the survey. The relocation support elements
included in the survey are:
FR b||eus (p|e aud pos a|||.a|)
Pre-assignment familiarisation trip
Orientation/settling in programmes
Relocation airfare
Relocation shipment
Temporary accommodation
Departure management
Immigration services
Tax services
Lump sum relocation allowance
Home search assistance
School search assistance
Spousal assistance
2.2 Relocation support provided to foreign executives on expatriate / non-expatriate
terms
Survey ndings show that the relocation practices of Singapore based companies particularly for those relocating
foreign executives on expatriate terms are generally in line with global relocation practices.
For Singapore in-bound foreign executive transferees and new direct foreign hires on non-expatriate terms, relocation
support provided is generally less comprehensive in comparison, typically including the following benets:
HR briengs
Relocation airfare
Temporary accommodation
Immigration services
Home search assistance
To ascertain how local relocation practices compare with global relocation practices, the following assumptions
have been made:
a) Above global standards Where the relocation benet(s) provided by participants in the survey is above
global standards by more than 10%.
b) Consistent with global standards - Where the relocation benet(s) provided by participants in the survey is
within a 10% range of global standards.
c) Below global standards Where the relocation benet(s) provided by participants in the survey is below
global standards by more than 10%.
9
Table 3
Comparison of Global Relocation Practices with that of Singapore Based Companies (Foreign Executives on Expatriate
Terms / Non-Expatriate Terms)
Relocation
Benets
Benchmarked Against Global Pratices
Foreign Executives on
Expatriate Terms
Foreign Executives on Non-Expatriate Terms
Intra-Company Transferees New Hires
Above Consistent Below Above Consistent Below Above Consistent Below
HR Briengs (pre-arrival)
HR Briengs (post-arrival)
Orientation / Setting-in
programmes

Pre-assignment familiarisation
trips

Relocation airfare
Relocation shipment
Temporary accommodation
Departure management
Immigration services
Tax services (pre-arrival)
Tax services (post-arrival)
Home search assistance * *
School search assistance
Spousal assistance
Lump sum relocation allowance
* Refers to guided home search assistance only
2.2.1 HR briengs
The majority of Singapore based companies provided their foreign executives with a HR brieng to cover the relocation
process, an overview of assignment terms and conditions and the objectives of the assignment.
Table 4
Responses Percentage
Yes, in-house pre-arrival HR brieng 80.2%
Yes, in-house post-arrival HR brieng 53.7%
Yes, external consultants brieng 29.8%
Not provided 4.1%
Base responses 121
1
0


Figure 4



0%
Global relocation practices
A similar trend of placing more emphasis on pre-arrival rather than post-arrival briengs is also observed from global
practices. However, a higher proportion of companies, 36.3% and 31.7% globally use external consultants in their pre
and post-arrival briengs respectively. External consultants, focus in particular on providing guidance with the relocation
process and providing an overview on basic assignment entitlements.
2.2.2 Pre-assignment familiarisation trips and orientation/settling-in programmes
The survey results showed that Singapore based companies typically provide pre-assignment familiarisation trips and
orientation/settling-in programmes for their expatriates, but to a much lesser extent for their foreign executives relocating
on non-expatriate terms.
Global relocation practices
In comparison with global practices, almost 90% of global companies grant a pre-assignment/orientation trip to their
international assignees, subject to circumstances, location and where possible, combined with a business trip. The average
length of each pre-assignment trip may range, depending on the geographical distance and travel time, and companies will
typically pay for all reasonable costs. Most companies also include such costs into their assignment cost projections, which
are prepared at the planning stage for budgeting purposes.
2.2.3 Relocation airfare and shipment, temporary accommodation, departure management
Typically considered as basic relocation assistance, a greater number of companies provide these benets to foreign
executives on both expatriate and non-expatriate terms, although there may be differing entitlements e.g. limited shipping
volume for the latter group.
Global relocation practices
Global relocation practices also reect that the majority of companies provide these basic relocation benets
to their foreign hires, including temporary accommodation and reasonable reimbursements for meals.
11
Figure 5

0%
In terms of departure management assistance which may typically include home property management, sale of cars and
reimbursement for costs incurred due to early lease breaks, approximately half of companies globally provide these benets
to their expatriates and even fewer will provide these benets to their non-expatriate employees. This may be due to the
||| uurbe| o |e|oua| ro.es |u Eu|ope aud |e u' w|e|eb, ro|e |ause|ees a|e ou corrue| a||auereus aud |e||
families continue to remain in the home location.
2.2.4 Immigration and tax services
Majority of companies surveyed provide immigration assistance to all groups of foreign executives in the application of appropriate
passes.
It is interesting to note from the survey results that, although both immigration and tax are important areas in which companies
always seek and ensure compliance to, there is however, a rather signicant decrease in the level of tax assistance extended to
foreign executives on non-expatriate terms.
Global relocation practices
According to global practices, approximately 90% of global companies
provide tax services to their international assignees. The majority provide
both pre-arrival and post-arrival tax brieng meetings as well. Most global
companies who provide this benet also employed the services of external
consultants (tax specialists) to manage the tax compliance issues related
to their cross-border deployments and global employees.
It is also not uncommon for companies to extend tax services to their
permanent transfers on non-expatriate terms, e.g. for the rst one
or two years.
2.2.5 Lump sum relocation allowance
1
2
Figure 6

0%
Survey results indicate that 88.2% of Singapore based companies provide relocation allowance to their expatriates and
that this is typically calculated based on family size or offered as a xed amount.
In comparison, 39.3% and 26% of new foreign sourced hires and intra-company transferees on non-expatriate terms
respectively are not provided with relocation allowance. Where provided, most companies offer xed amounts which are
likely to be of a smaller quantum.
13

0%
Figure 7 Figure 7
Global relocation practices
In recognition that with any relocation, there will be miscellaneous expenses incurred, many companies globally provide
either a cash relocation allowance or agree to reimburse their employees for these expenses.
Global benchmarks indicate that approximately 90% of companies provide such assistance and that the most common
criteria used to determine the amount is to base it on a pre-determined xed amount and to factor in family size. Permanent
transferees may receive a smaller amount and to some extent, this may also be provided on a case-by-case basis.
2.2.6 Home search assistance
Survey results show that more than 80% of foreign executives on expatriate terms are provided with guided home search
assistance by relocation vendors. As most expatriates on assignments are typically provided with company-leased housing,
companies will also assist to review the tenancy agreements and pay for deposits/costs.
Foreign executives on non-expatriate terms on the other hand, are provided mainly with general housing information and
with limited home search assistance in any other form. New foreign sourced hires, in particular, are provided with the least
assistance.
Global relocation practices
The survey results are reective of general global practices where employees transferred on permanent basis are also
typically not provided with home search assistance and housing allowances.
1
4



0%
Figure 8
2.2.7 School search assistance
Survey results indicate that companies in general only assist by providing general school information.
Foreign executives on expatriate terms are provided additionally with assistance in school registrations and deposits. Less
than half of the companies surveyed provide guided school search assistance by relocation vendors. Access to education
counsellors is also not typically provided.
Consistent with providing leaner assistance for those on non-expatriate terms, other than general school information which
is provided by approximately half of the survey respondents, foreign sourced hires and intra-company transferees receive
limited assistance in relation to dependent schooling.
15
Figure 9





0%
Global relocation practices
The survey results are consistent with global practices in that foreign executives on non-expatriate terms are normally not
provided with dependent schooling assistance at all educational levels. However, in some locations, it may not be entirely
necessary for children of foreign executives to attend an international school or the cost of these international schools may
not be as high as they are in Singapore.
2.2.8 Spousal assistance
Survey results indicate that not much emphasis is given to spousal assistance with only 40% of
companies providing some form of support in this area. If provided, support is normally in the
form of education / training and spousal assistance programmes which will generally include
resume writing and career counselling.
Global relocation practices
1
6



0%
Search firm
services
Spousal
assistance
programmes
Professional
development
events
Education/
Training
support
Spousal
allo wance
Compensation
for loss of
spousal income
Others Not provided
11.8%
17.6%
21.6%
1.1%
1.1% 1.1%
4.1%
7.8%
2.7% 2.7%
13.7%
1.4%
3.9%
0.0% 0.0%0.0% 0.0%
2.0%
0.0%
59.8%
92.1%
91.8%
5.6%
4.1%
Figure 10
More than half of companies globally provide work permit assistance to support spouses seeking to work in the assignment
host locations. Companies may also provide a discretionary allowance for receipted expenses supporting spousal career
enhancing activities and training reimbursements/payments (approximately 25%) and job hunting (approximately 40%).
2.3 Relocation support provided to Returning Singaporeans
The survey also briey looked at the extent of support companies provide to Returning Singaporeans in the relocation and
reintegration process. No distinctions have been made in relation to the seniority of these employees.
From the survey results, we note that the extent of relocation assistance provided to the Repatriating and New Hire
groups often differs. Returning Singaporeans who are repatriating after a company sponsored international assignment
are generally provided with the core relocation benets. However, returning Singaporeans who are new hires may receive
limited support with some companies not even providing core relocation benets.
2.3.1 HR briengs Returning Singaporeans/SPRs
17

Figure 11

63.8% 63.8%
91.5%
87.2%
48.9%
63.8%
61.7%
2.1%
50.0%
11.9%
38.1%
33.3%
31.0%
11.9%
33.3%
38.1%
Returning Singaporeans - Repatriating Returning Singaporeans - New Hires
HR
briefings
Departure
management
Relocation
airfare
Lump sum
relocation
allowance
Not
provided
Relocation
shipment
Temporary
accommodation
in Singapore
Tax
Assistance
0%
Of the 47 companies surveyed who have Returning Singaporeans/SPRs repatriating to Singapore, approximately 64%
provide HR briengs upon repatriation. In comparison, of the 42 companies who have Returning Singaporeans/SPRs who
are new hires, only 50% provide HR briengs upon relocation to Singapore.
2.3.2 Relocation assistance Repatriating Singaporeans/SPRs
The survey results show that most companies provide basic relocation assistance to their Singaporean employees repatriating
from an overseas assignment, with approximately 90% providing relocation airfare and shipment.
Approximately 63% of the companies also provide departure management, tax assistance and lump sum relocation
allowance to repatriating Singaporeans.
However, less than half of the companies provide temporary accommodation in Singapore to repatriating Singaporeans.
2.3.3 Relocation Assistance Singaporean/SPR New Hires
Returning Singaporeans who are new hires to the companies receive signicantly less relocation support compared to the
repatriating Singaporeans with 38% of the respondents not providing any relocation assistance at all. One reason may be
that for Repatriating Singaporeans, their relocation support is determined according to the companys global repatriation
policy; whereas for New Hires, relocation support is provided on a case by case basis or negotiated for based on how crucial
the individual is to the company.
Only about one third of the companies provide relocation assistance in the form of relocation airfare and shipment,
1
8

Figure 12




5.6%
7.0%
11.3%
18.3%
40.8%
53.5%
A
Assistance with immigration
procedures for non-Singaporeans
and non-PR family members
None of the above is provided
A housing allowance or subsidy in the
event that permanent accommodation is
not immediately available
Information on integration
programmes into local schools
Job search assistance or career
counselling for spouse/ family
Allowance or subsidy of international
school fees in the event that integration
into local school is not feasible
0%
temporary accommodation in Singapore and lump sum relocation allowance. Approximately 12% of the respondents
provide departure management and tax assistance to the Returning Singaporean new hires.
This is in contrast to the extent of relocation support provided to
new foreign sourced hires where only 3.4% of companies do
not provide any form of relocation assistance to them.
2.3.4 Re-integration support
19

Figure 13


0.8%
5.8%
44.6%
59.5%
76.0%
Others, please specify
No key strategy in place
Flexible/ competitive
compensation packages
Identify and develop
global talent for future
roles
Identify the 'right' fit of
global talent for current
roles
0%
Besides relocation assistance, survey participants were also asked to indicate if other forms of support are provided to
assist the Returning Singaporeans in their reintegration into the country.
Survey results indicate that companies in general, offer limited assistance to the Returning Singaporeans and their families
in the reintegration process.
3 Global Mobility Considerations for Singapore based Companies
In this section of the report, we will highlight key factors that are distinctive to managing global talent in Singapore as
identied from the survey ndings.
3.1 Global talent attraction and retention strategies adopted
2
0
Figure 14

0%
In the survey, we see that companies are evidently realising that compensation is just one piece of the talent puzzle as less than
half of the respondents relied on exible or competitive compensation packages to attract global talent. Approximately 60%
of companies are placing emphasis on identifying and developing global talent for future roles.
The importance of global talent identication and development strategies can be seen from human capital learning points that
surfaced as a result of the downturn
4
.
4
Human capital learning points as highlighted in the 13th annual PwC Global CEO survey released in January 2010 include:
CEOs were unable to move talent around quickly when the crisis hit, leading to large-scale layoffs to save cash at one extreme, but also left crucial talent
gaps at the other.
Employees lacked the key skills needed to operate and compete in the new emerging environment.
CEOs were more concerned about the availability of key skills compared to the year before.
Companies to evaluate the talent they have today and then project their talent needs in the short and long term, to help them think strategically about
their hiring, development and succession planning throughout the organisation. Development of talent may take the form of rotational assignments, formal
training and strong mentoring.
21
Figure 15

0%
3.2 Compensation package considerations for foreign executives on non-expatriate terms
In terms of salaries and allowances, whilst most companies follow the local benchmarks, some may offer either the higher
country salary bands or adopt a pseudo host approach i.e. modied salary scales higher than that of the local employees.
Of the 121 companies who participated in this survey, 26% would offer salaries above local benchmark levels. A small group
of respondents provided incentives such as sign-on / completion bonus (19%) or International Assignment Mobility Premiums
(11%).
3.2.1 Housing
Nearly half of the respondents either fully or partially subsidised housing costs. Of those who provide the benet, 54.2%
provide the subsidy throughout the employment duration.
2
2

Figure 16
64.8%
7.0%
26.8%
1.4% Follow local benchmarks
Package is reassessed
and premiums provided to
recognise overseas
experience
Case-by-case basis
3.2.2 Dependent education
17% of the survey respondents fully or partially subsidised the cost of dependent schooling. Of this, 35.3% provide the subsidy
throughout the employment, whilst the remaining companies provide the benet only for a limited duration.
3.2.3 Pension
We also observed that as foreigners are not eligible to participate in Singapores Central Provident Fund (CPF) scheme, 27%
of the companies provide alternative pension arrangements either in the form of cash-in-lieu of CPF or as a contribution to
the Supplementary Retirement Scheme. 22% of the respondents either allow their non-expatriate foreign executives to remain
in their home pension schemes or enroll them into the companys pension plan. In both scenarios, 70% and above of the
respondents provide the benet throughout the employment.
3.2.4 New hires on non-expatriate terms receiving limited relocation support
The survey results show that the foreign direct hires, which represent the group of foreign executives who have the most
potential of staying longer term in Singapore are those receiving the least relocation support compared to other categories of
foreign executives.
As the relocation and settling in needs of the foreign direct hires are similar to those of any other foreign executive, more
relocation and re-integration benets can be provided to ease their transition process.
As the relocation and settlingg in needs of the foreign g direct hires are similar to those of any y other foreig gn executive, more
re relo loca cati tion on aand nd rree-in inte tegr gr g at atio ionn be bene net tss ca cann be be bbb pp pro rovi vide dedd d to to eeas asee th thei eirr tr tran annnnsi sii siiti ti ti ti tt on on oooo pppro roce cess ss.
23
Figure 17



0%
3.3 Compensation package considerations for Returning Singaporeans
For Returning Singaporeans, 64.8% of respondents continue to follow local benchmarks for their compensation packages, and
only 7% of respondents reassess the packages and offer premiums to recognise the overseas experience.
3.4 Key challenges faced in global talent attraction and retention
When companies were asked to rate common key challenges in their attraction / retention strategies of non-expatriate
employees, the uctuating housing market is rated as the most challenging factor which suggests how the high and rising
housing costs have impacted the foreign talent attraction strategies of Singapore companies.
Table 5
Challenges Attracting / Retaining Foreign Executives on Non-Expatriate Terms
1 Housing - uctuating housing market
2 Compensation packages
3 Dependents education costs
4 Cost of living
5 Spouse/ Partners resistance due to career
6 Dependents education - lack of vacancies/ inadequate school choices
7 Dependents education - incompatible local school curriculum
8 Lack of career opportunities / development
When asked to rate the key challenges faced in attracting and retaining Returning Singaporeans, nearly half of the respondents
rated career opportunities / development and compensation package as the top two challenging factors.
2
4
Figure 18

11.7%
52.5%
27.5%
20.8%
34.2%
20.0%
7.5%
33.3%
54.1%
27.5%
65.0%
45.9%
Subscription to online
relocation support services
by third party vendors
In-house support services
Provide/ subsidise
membership in
clubs/ associations
In-house buddy system
Provided Not provided but will consider Not provided and will not consider
0%
3.5 Pension benets as a longer-term retention tool
Relocating to Singapore on local plus or local terms often means being hired on Singapore employment terms and conditions.
As Employment Pass holders in Singapore, if their Singapore based employer does not provide any pension benet, this may
be a concern, especially for individuals originating from Western Europe and North America who often would have had some
form of pension benet in their home countries.
As seen from the survey results, the majority of Singapore based companies who do provide some form of pension benets offer
cash-in-lieu of CPF. Providing the benet in this form puts the onus on the individual to plan and save for their retirement.
3.6 Alternative support models
We asked survey participants if they currently provide and if not, will they consider providing some alternative support models
that can assist in the relocation and integration of their talent into Singapore.
As the integration of new arrivals cannot be fully achieved simply through a HR brieng or a one-day orientation, socialising and
networking can embed these individuals and their families more rmly and quickly and allow them to forge new relationships
and personal networks.
An in-house buddy system or memberships in clubs/associations can create an environment which promotes social and business
interactions with locals and other expatriates.
Technology can also complement this as web portals can provide information, facilitate forum discussions, as well as offer an
avenue for the newly arrived talent to post questions on housing, schooling, overall unfamiliarity or cultural issues that may
not surface immediately upon arrival.
25
3.7 Further Tax Deduction (FTD) Scheme
Introduced by the Government in 1998, the FTD Scheme is an option available to assist employers to defray the cost of
recruiting/transferring selected skilled professionals (P1, P2, PEP holders and Returning Singaporeans or PRs of equivalent
standing) from overseas to Singapore.
The ceiling for qualifying prescribed expenses incurred is SGD 15,000 per employee for the P1 employment pass holder and
SGD 5,000 per employee for a P2 employment pass holder. Where the P1 and P2 employment pass holder is relocating with
his/her spouse and unmarried children below 21 years of age, the expenses incurred for the one-way relocation airfare would
also qualify as deductible expenses, subject to a maximum of SGD 5,000 for spouse and SGD 2,500 for each qualifying child
up to a maximum of 2 children.
uude| ||s sc|ere, eac| erp|o,e| |s ab|e o c|a|r o| qua||,|u |ec|u|reu aud |e|oca|ou epeuses up o ra|rur o 'C0
275,000 per assessment year.
Employers cannot claim further tax deduction if:
they already enjoy Government grants, incentives or any other Government assistance schemes, which offset the
recruitment and/or relocation costs of global talent; or
the overseas employee is recruited through intra-company transfer. (Intra-company transfer is the transfer
between companies in the same group, which is dened for tax purposes to include subsidiaries
and associates)
Source: MOM website, Income Tax Act (Chapter 134, Section 14L)
2
6
4 The Future Role of HR
The recognised importance of human capital to an organisations success in the current global business landscape would
suggest that the role of HR should move into a strategic position where HR professionals will partner the business to
support its growth plans.
Has the HR function changed?
From the survey, we note that most Singapore companies continue to rely on HR generalists to manage their foreign
executives. We also note that outsourcing and shared services arrangements are less popular with companies in Singapore
when compared to western economies
5
.
Table 6
Responses Percentage
Managed in-house by HR generalists 78.5%
Managed in-house by international assignment team 36.4%
Fully or partially outsourced to external vendors 21.5%
Managed in-house through shared services arrangement 14.9%
The top three reasons cited for not outsourcing are:
1. Relocation services not deemed necessary
2. Cost
3. Company has a well-established internal relocation support function
In addition, survey results also indicate that nearly 70% of the respondents rated improved communication and alignment
of strategies between HR and the business as the most important factor in enhancing global talent management. Improved
administration processes and Training for HR team are rated as the second and third most important factors.
5
lu a |esea|c| b, lwC 'a|aoa, |u coope|a|ou w|| C|aue|d 'c|oo| o Vauaereu oe|e| w|| |ep|eseua|.es o ru||ua|oua| o|au|sa|ous |u |e uu|ed 'aes,
uu|ed K|udor aud cou|ueua| Eu|ope, daa s|owed |a o |e oa| epa||ae rauaereu coss, 75% we|e ousou|ced coss, |ud|ca|u |a rajo| o|au|sa|ous
in those regions used external expertise to a large extent.
27
5 Managing a Mobile and Diverse Workforce
The Singapore based companies who participated in the survey Relocation practices for incoming global talent to
Singapore conducted by MOM are evidently having to manage an increasingly diverse and growing group of foreign
executives in Singapore.
The survey data also showed that a large group of foreign executives are relocating to Singapore on local or local plus
terms, where relocation benets and assistance may not be as comprehensive as those offered to foreign executives
relocating on the more traditional expatriate terms and conditions.
Being mobile has an impact on an individuals sense of security and stability. The familys well-being and assimilation
into Singapore, longer term career opportunities and nancial risks are just some of the issues mobile employees grapple
with.
The increasing diversity of the workforce in Singapore, their distinct differences in culture, language, social and economic
background and technical skills reinforces the need for Singapore based companies to focus on making the relocation
experience to Singapore a positive one for executives and their families relocating to Singapore.
2
8
6 Glossary of Terms
Assignment allowances Cash allowances provided to assignees in relation to their international
assignment.
Assignment location; Host location The country the employee is deployed to work in other than the home country,
during the assignment period.
Also referred to as Host Country.
Departure management Assistance / Reimbursements provided by the company typically for disposal
of car/ accommodation in the home location prior to the move e.g. early lease
break, sale of car, home property rental/ management.
Educational counselors Professional school guidance who assist students in selecting appropriate
courses, schedule subjects and educational programmes according to their
interests, aptitude and abilities. Services paid for by the company.
Foreign executive Professionals who are foreign nationals who have relocated to Singapore
either on expatriate or non-expatriate terms. They should be in possession of
recognized qualications and skill sets and hold an Employment Pass.
Foreign executives on expatriate terms Foreign executives who are provided with comprehensive assignment related
benets such as housing, schooling, tax assistance, mobility premiums etc.
Foreign executives on non-expatriate
terms
Foreign executives whose terms and conditions of employment in Singapore
would generally be in line with local terms but may reect limited allowances
/ benets such as housing and schooling.
Global talent Talent pool which includes foreigners as well as Singaporeans.
Guided home search Guided home search using qualied relocation consultant or housing agent
paid for by the company.
Guided school search Guided school search (e.g. visits to schools, assist in enrolment) using qualied
relocation consultant paid for by the company.
Home country Home country of the assignee prior to commencing the international
assignment or the country where the assignee retains home ties.
Home leave; Home visits Entitlement under pre-determined terms which allow employees and their
accompanying dependants (if applicable) to return to the home country for
holiday/vacation purposes.
HR briengs HR briengs to address relocation /reintegration issues relating to the
move, career, settling-in etc. When conducted by external consultants, more
emphasis may be placed on explaining the assignment policy andrelocation
vendor contacts and issues.
Intra-company transferees Foreign executives transferred from within the organisation and working in
Singapore on local or local plus terms, usually on a permanent basis.

In-house buddy system Support programme whereby existing foreign employees assist new foreign
employees to settle-down and integrate into the new environment.
29
In-house support services In-house support services such as FAQ posted on company intranet,
welcome kit with destination information, vendor contacts etc.
Local-plus employee An employee who is transferred to a new location or directly hired into
a new location i.e. not the home country. The terms and conditions of
employment at the new location may not be totally in line with local
terms but may reect certain additional benets such as relocation,
housing and schooling.
Middle management Management of operations, typically reports to Heads of Business
units. Makes decisions that impact short term results. This refers to
managers and professionals/ executives.
Millennials Described in Wikipedia as Generation Y a term used to describe
someone born immediately after Generation X. There is much dispute
on the exact range of birth years. For the purpose of this document,
we refer to Millennials as those who entered the workforce after 1
July 2000.
Mobile employee An employee who is either an international assignee or local plus
employee working in a foreign country.
New foreign sourced hires on Foreign executives recruited directly from overseas into
non-expatriate terms Singapore and working on local or local plus terms.
Online relocation support services Online support services such as online relocation guides, online
cultural support and hotline services.
Orientation and settling-in programmes Specially designed programmes aimed at providing comprehensive
guidelines and practical tips on how best to settle-in. These
programmes are often conducted by external relocation consultants
and may include area familiarisation tours and setting-in services.
Outsourcing The use of an external party to carry out one or more internal
processes or functions.
Pay equity The philosophy according to which work judged to be equal or
similar should be equally rewarded, except for allowable differences
such as seniority, or merit. The concept has evolved to the present
understanding of equal pay for work of equal value to a company.
Per Diem A daily allowance to cover miscellaneous expenses incurred on meals,
transport and incidentals.
Permanent transferees Employees who terminate their home country employment contract
and transfer to the new locations terms and conditions on a
permanent basis.
on non-expatriate terms
3
0
Pre-assignment familiarisation trip A customised exploratory trip, conducted prior to the transfer, to
provide an overview of the living conditions in Singapore
PwC IAS PwC International Assignment Services (Singapore) Pte Limited
Relocation allowances Typically a one-off payment made at the start of the transfer and/
or end of an assignment intended to compensate for the general
upheaval and incidental expenses associated with moving to another
country.
Repatriation The process of the international assignees return to his home
country.
Returning Singaporeans An overseas Singaporean or Singapore Permanent Resident who has
returned to work in Singapore.
Senior management Leadership that requires the exercise of a high degree of independent
judgment in the development of company policy, business direction
and accountability for long-term results. This refers to the Heads of
31
Business units.
Shared Services Consolidation and sharing of services by different units within an
organisation.
Spousal assistance programme Career assistance programme which typically includes resume writing
and career counseling.
Spousal allowance An allowance, typically paid lump sum by the company in recognition
of the career disruption experienced by the spouse and to cover for
expenses on development/language classes, career counselling etc.
Tax Assistance Tax brieng on local tax regulations and processes, and assistance in
preparation of tax returns by an external tax specialist.
Tax Equalisation Method to ensure that the assignee neither gains nor loses with
regards to income tax, as a result of undertaking an international
ass|ureu. uude| !a Equa||sa|ou, |e erp|o,e| uo|ra||, se|es
the employees actual tax liabilities in applicable tax jurisdictions
whilst withholding hypothetical tax equivalent to what the assignee
would have paid at home.
3
2
7 Use of This Report
The data on relocation practices in Singapore which has been referred to in this report was collected through a
survey with 121 companies based in Singapore and PwC has not been independently veried, validated or audited
the data obtained via the survey. PwC makes no representations or warranties in respect of the accuracy of the
information obtained via the survey.
The survey data and report will be considered intellectual property of the Government of Singapore care of the
Ministry of Manpower and shall not be copied, reproduced, disclosed or transmitted in any form,or by any means
without prior written permission from MOM.
The contents of this report should not be construed as legal, tax or professional advice and readers should not
act on the basis of any matter contained in this report without seeking advice specic to their own particular
circumstances.
33
MINISTRY OF MANPOWER
International Manpower Division
18 Havelock Road Singapore 059764
http://www.mom.gov.sg