The second in a five part series about international relocation.

CHINA, Japan, Brazil, South Korea, and India are the primary emerging destinations for expatriate employment, while at the same time, China, Japan, India and Russia are also the most challenging locations for expatriate living. These are the findings of the latest Global Relocation Trends Survey published by GMAC Global Relocation Services.

This comes as no surprise to experienced expats. "That's why international corporations offer increased bonuses and premiums for assignment in hardship countries" according to Keith Middleton, a human resources consultant based in Sofia. Usually more money and a fair compensation package are the main factors that tip an employee's decision to take an assignment.

Most expat compensation packages are calculated two ways. One is called the "build-up" or balance sheet approach and the other is called the "host approach." The build-up method takes an employee's salary and uplifts it for various factors based on the cost of living in the destination country. The host approach means the employee is paid the host country market rate (which is great if you are working in Switzerland but dismal if you are working in Sofia.).

A typical build-up approach is evident in the standard compensation package which includes: allowances for housing, medical coverage, car, relocation and children's education at the best international schools as well as tax equalisation (so employees are not penalised by paying higher taxes). While some companies will throw in extras like mobile phone costs, round trips home, local club memberships, home utility and household staff wages, the trend now is toward cost-cutting. That's important information if you are renegotiating your contract soon.

Another trend in the industry is the option for short-term assignments. According to GMAC Global Relocation Services, the global recession and corporate downsizing have caused an increase in the number of international short-term assignments. Usually less than one year in duration, "these assignments offer employees' families numerous benefits such as: not uprooting children from schools, activities, neighborhoods and friends; dual career issues are minimised; the spouse's career path isn't interrupted; employees/companies aren't faced with the prospect of selling homes or arranging for property management; and other family situations-caring for aging parents, for instance-are not affected."

And two last bits of news you should know: local hires and single-status preferences. In general, companies are leaning toward more locally hired (host country) employees versus expatriate candidates. Since it costs corporations millions of dollars to relocate expats, they want host country employees at a fraction of the cost. The local hires are trained at the corporate headquarters for approximately a year and then return to the host country with higher productivity rates, no relocation costs or family settlement issues and no language or cultural barrier. Single-status or unmarried employees are in demand as another cost-cutting measure: no accompanying family means a lot less overhead for the business.

So how do you compete for the next assignment? The experts agree you have to deal with these things before you sign on the dotted line and accept the job. "It's better to create a shopping list of items most important to you" and be willing to negotiate, says Middleton. Remember you are a valuable asset and your skills, experience, international savvy and tenure with the company are what make you an attractive candidate. When negotiating your next contract consider the following factors:

* Location of the office and territory. How much travel is anticipated. What are the reimbursement features? Phone calls home get very expensive when using mobile phones from international locations.

* Duration of the assignment. Will there be a trial period? If so, how long? This is especially important when relocating families.

* The job function. How many people will be reporting to you? What is your employer's vision of success? How will that success be measured and how will you be rewarded?

* Salary. Again, find out exactly what you will receive and the bonus structure. If your increases are performance-based, find out who's making that decision - your immediate supervisor or a financial officer back at headquarters. Get all the tax issues nailed down in writing. Since professional spousal employment opportunities are rare overseas, consider adding the spouse's "vanished" salary to your bottom line.

* Housing and living allowances. Cover all the information clearly so there are no surprises once relocated. If you have to stay at a hotel temporarily, will they only pick up the room or are meals included? How long does the temporary housing allowance last? Will you have help house-hunting? Since you are expected to be productive right away, how long are you allotted for house-hunting?

* The company car. Will you have to reimburse for personal use? Are you responsible for routine maintenance?

* Breach of Contract. Find out what are the acceptable reasons for a breach of contract - such as family medical emergency, special education demands of children. What are the consequences of a contract breach? Will you have to pay the moving expenses?

Additional Resources

- http://www.eca-international.com/ - shows an excellent animation that illustrates the way expat compensation packages are calculated.

- http://www.homefair.com/homefair/calc/intsalcalc.html - the International Salary Calculator

- http://www.expat-essentials.com/ - Practical Support for all your expatriate management needs.