With Brexit looming on the horizon, a new survey by Mercer offers some good news for Dublin as it is named the 66th most expensive city in the world for expatriates in terms of cost of living, according to Mercer’s 2017 Cost of Living Survey. The strengthening dollar has pushed Dublin and other Eurozone and UK cities down the rankings of most expensive cost of living locations for expatriates.
Commenting on the results, Noel O’Connor, Principal at Mercer Ireland noted:
“Dublin is ranked in 66th position in Mercer’s 2017 Cost of Living Survey for expatriates. The strength of the dollar against the euro means that it is now more affordable for global companies to relocate their expatriates here.”
“It is also interesting to note that once again Dublin is the second highest ranked city in the Eurozone, behind Paris. The survey identifies cost pressures on expatriate rental accommodation as a key factor in maintaining Dublin’s relatively high ranking when compared to other Eurozone cities” added Mr. O’Connor.
Only three European cities remain in the top 10 list of most expensive cities for expatriates, Zurich (4) is still the most costly European city on the list, followed by Geneva (7) and Bern (10).
Mr. O’Connor noted:
“Dublin remains a very attractive location for both expatriates and multinationals. When companies relocate employees, they need information on the cost of living differences between cities. The Mercer Cost of Living data helps multinational companies to determine the allowances to apply for their expatriate population.”
In a rapidly changing world, mobility has become a core component of multinational organisations’ global talent strategy. To support the growing number of international assignees working in an increased number of locations, organisations are focusing on evaluating assignments from a cultural perspective, preparing for regional and lateral moves, and modifying compensation approaches to stay competitive. As organisations grapple with these challenges, they are working hard to accommodate the needs of their workforce and to support employees’ careers. According to Mercer’s 2017 Global Talent Trends Study, fair and competitive pay as well as opportunities for promotion are top priorities for employees this year – not surprising given the current climate of uncertainty and change.
As a result, multinational organisations are carefully assessing the cost of expatriate packages for their international assignees. Mercer’s 23rd annual Cost of Living Survey finds that factors like the instability of housing markets and inflation for goods and services contribute to the overall cost of doing business in today’s global environment.
“Globalisation of the marketplace is well documented with many companies operating in multiple locations around the world and promoting international assignments to enhance the experience of future managers,” said Ilya Bonic, Senior Partner and President of Mercer’s Career business. “There are numerous personal and organisational advantages for sending employees overseas, whether for long- or short-term assignments, including career development by obtaining global experience, the creation and transfer of skills, and the re-allocation of resources.”
Mercer’s authoritative survey is one of the world’s most comprehensive and is designed to help multinational companies and governments determine compensation allowances for their expatriate employees. New York is used as the base city and all cities are compared against it. Currency movements are measured against the US dollar. The survey includes over 400 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.
“While historically mobility, talent management, and rewards have been managed independently of one another, organisations are now using a more holistic approach to enhance their mobility strategies. Compensation is important to be competitive and must be determined appropriately based on the cost of living, currency, and location,” said Mr. Bonic.