A friend of mine who works for a large consulting firm is busy moving, downgrading to be exact. Her housing allowance was cut from RMB30,000 to RMB10,000. If moving is tedious, imagine how horrific it is to move to a worse place. I have heard a lot about how expats have been hit hard by the current recession, that many are gone and the rest have to take significant cuts in salary and benefits. It seems the days of champagne brunch and art gallery visits are over. Will the charmed existence of the expat be a tale like those of Shanghai in the 1930′s? There is no official figure of the expat causalities yet. But I suspect talking to operators of some favorite expat hangouts in town will give a good indication.
On the other hand, there has been rising interest in Chinese with overseas education and work experience. The Shanghai government and a number of state owned enterprises have gone on headhunting trips to New York and London. They especially liked Chinese with overseas experiences who theoretically would have the best of both worlds and bridge the gaps in language, skill and exposure. In addition, many of them command a more competitive salary or are willing to take less. For corporates, it seems to make sense to look for talent in this group, especially for mid-level management positions. But at the same time, many companies are putting freeze on new hires or being extremely cautious about it. So it doesn’t look too promising for anyone.
Who will support the wine bars sprouting all over the city now?
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March 23, 2009 1:22 pm
I think this has been coming for a while — FEPs (‘Fat Expat Packages’), as we call them, have been getting harder and harder to come by as many foreign companies prefer to work with local hires, and the days of ridiculous housing allowances are probably coming to an end too. I must admit, I have a hard time feeling any sympathy.
March 23, 2009 10:08 pm
Brendan,
I guess that’s how most of us feel. But at the same time, it also makes me worry about my job although I make nowhere near the money expats do. Companies and jobs that once seemed omnipotent and invincible are going under, what about mine?
March 24, 2009 1:05 am
This doesn’t surprise me. I was called by a headhunter for a top level job in Shanghai that was about 30% less than I’d expected + without relocation. They still haven’t filled it yet. Hmmm, wonder why?
March 25, 2009 8:31 pm
I guess it’s going to be up to the locals to get to the wine bars
But yes, it seems like this has been a long time coming, the difference in pay between expats and locals is simply dumbfounding, and I say this as an expat working in China. It is only natural that as China gets more developed, and more and more locals have the requisite skills that a company needs (including English language ability) that expats are less “needed” than before. As a result, all the lao wei’s should be expected to either take a cut or get out to deal with the increased competition.
March 25, 2009 11:53 pm
Hi Miss Xu,
Not to sound sexist at all, but you might want to reconsider that offer because a manicure costs 5 bucks in Shanghai.
P.S. I really enjoye your posts. I observe 2 cultrues, you do a dozen!
March 25, 2009 11:57 pm
G,
Thank you for your candid comment. Totally agree with your point about increased competition. It will make both sides better.
March 28, 2009 3:11 pm
We’ve been in China for over a year. Although, working for a very small company. Now, we didn’t receive bonus, no more language subsidy, and even health care was cut.
March 31, 2009 1:56 am
Hi Nikou,
That must be hard. But in times like this, we all make do with. Jiayou!
May 20, 2009 10:43 am
When i was living in Shanghai, I always envied the lives of the expats – huge houses, free language classes, dining in the best spots and bars in town. It made me see that the expats do live charmed lives. And I guess, it’s always something I aspired to having… Hopefully, this whole economic downturn will pick itself up soon.
June 28, 2009 4:47 am
I agree!