An article in our last international newsletter explored some of the personal factors that candidates need to consider when looking at new leadership roles internationally.

Here, we continue that theme to consider the package – how packages are put together and what to look for to make sure a salary meets your needs. Salaries can be packaged very differently, which can make this a complex matter.

Career progression is not always salary progression

It may be stating the obvious, but most international leaders are accustomed to the idea that as they move between different markets and types of school, they will go up and down in salary. That is different to what is more typical in national systems, and indeed in other professions, where career progression usually equates to salary progression.

If leaders did not accept this, nobody would leave a high-salary environment – Hong Kong, for example – let alone move to a lower salary one. Significant differences can also be evident within regions. Southern European salaries tend to be lower than in northern Europe, while you could step up from tax-free Dubai to a new role in equally tax-free Qatar and drop salary. Salaries will be linked to the operating costs for schools, which will generally relate to costs of living, but also to the competitiveness of the market and the relative status of schools.

Factor into this the vastly different sizes and organisational structures of schools, the difference in leaders’ responsibilities across schools, and the variety of ownership and financial models, and there are more variables to throw into the equation.

Even more confusing is that we do not have reliable benchmarks – there are some salary surveys out there, but they are of limited practical use to candidates.

What do you need?

If a new job does not result in a step-up in salary, how do you know what is fair? In our experience, leaders try to take four factors into account:

  • A competitive salary for the market. Without good benchmarks, this can be something of a guess, and is affected by other variables, including the size and status of the school. But it has to be a starting point.
  • A package that enables the leader to have the lifestyle they need in-country in order to do their job well and for their family to be comfortable, happy and safe.
  • Sufficient income to cover outgoings at home – property or university fees for example.
  • Sufficient income, however arranged, to make provision for the future, typically for retirement.

Individuals will have other needs, but these issues seem to apply to most candidates.

You may not want to start with salary when you first discuss a role, but it is important to align expectations early on so that you are not wasting everyone’s time and storing up frustrations for later. In our case, we try to collect detailed salary information from the schools we work with. We will usually not discuss a specific salary figure with candidates, but we will try to make sure that expectations are aligned. You should also do your own research. There will often be cost of living indices for countries, or expat websites that include advice on living costs. And there are a multitude of online tax calculators for almost every country (try more than one to check accuracy).

Unpicking the package

It is important not to make assumptions based on previous experience. Packages and benefits are put together in different ways, and an offer, regardless of the value, may look very different to what you are used to. There is no right or wrong. Sometimes there may be a country norm, or you may be encountering the usual practice of a company or group.

In some countries, it is more common to offer an overall package and not to separate out accommodation. Some candidates feel less comfortable with this, but neither is right or wrong. You just need to look at the whole differently. There are associated questions: how is accommodation taxed, for example, or is an allowance (rather than provided accommodation) flexible so that if you spend less on where you live, the overall value remains the same? Beware the phrase ‘accommodation included’ – it can have opposite meanings.

Provision for annual (or more) flights home seems to take on disproportionate importance. Candidates sometimes prefer a flight allowance to a higher overall total. We get why: it can somehow indicate a level of care on the part the employer. But we have known situations when a candidate would have been better off without the flights.

Relocation can mean two things. Reimbursement for the paid costs of moving is the more usual – shipping of possessions, for example. But sometimes there will also be an additional one-off sum that recognises your hidden costs of moving. A relocation allowance may demonstrate support and understanding. But does that matter if an all-inclusive package is generous?

It is important to check the details of medical cover. Worldwide insurance (often excluding the US) remains most common, but in some countries that can be difficult and disproportionately expensive. In those cases, cover is national and you’ll need to work out what supplementary policies you may need. It is also important to check any exclusions for existing conditions for all family members covered.

Pension or savings provisions are incredibly varied. Sometimes, the law requires employees to be enrolled in a state scheme or provident fund. Some such schemes are of limited value but others can be surprisingly generous. Schools may have their own pensions or savings arrangements or a combination of the two. Some will offer a lump sum gratuity at end of contract, based on years worked – you don’t save as you go but receive that lump sum to put towards your retirement planning. Sometimes there is none of this, just a generous salary intended to cover all bases.

Some countries offer tax reliefs when working there for the first time. These can be valuable, but they are subject to changing political winds. Tax breaks can be an attraction, but you should try to plan for the longer term: it is intensely irritating for schools to hear that their Head is moving on because they cannot afford to remain after three years when tax jumps to its normal rate.

Not comparing like with like

Comparing packages is challenging. Some schools will do their best to help candidates calculate the real value of a package. We have seen one school provide a handbook solely about the country’s tax arrangements. Another school takes the immensely practical step of preparing a dummy payslip to show what the various provisions mean in reality.

But be patient. Depending on the type of school – perhaps you will be one of the few expat staff, for example – you may be working with someone who will not necessarily understand that you are used to seeing things presented in a very different way, or that the taxes, pension arrangements and terminology used in their country may make little sense elsewhere. This can get a little frustrating, but be patient and try to get all the clarity you need.