Day Rate - Subject to Geographic Location When Changing Job?

[EmmanuelTop]

For the past 8 years I have been working in various process engineering roles - Technical service, Process design, Operations support, and now Commissioning & Startup. The positions were based in Europe, Middle East, and West Africa. Companies: both Operators and Engineering (Consultancy or EPC) companies.

Recently I got an interesting offer to join one of the top-class engineering companies in South-East Asia, but their offer was about 60% of what I am earning in the moment. The explanation is: the cost of living in Asia is much lower than the cost of living in the place where I am based now.

When changing jobs in the past, not a single employer has ever mentioned this particular issue as a reason to cut on salary/day rate. Somehow I believe that everyone needs to offer you a bit more (or just a bit less) than what you are earning at the moment, so that there is an incentive for you to move further. But I feel stuck with this explanation and very reluctant to jump off a beautiful horse and start riding a donkey. The new job does sound much more interesting, though.

Can you share your experience and views?

http://antwrp.gsfc.nasa.gov/apod/astropix.html

 

[zdas04]

I've charged the same hourly (and day) rate on every normally inhabited continent in the world (haven't worked in Antarctica yet, might charge a premium for that).

On the other hand, pay rate can become a way of keeping score. If you can accomplish your financial goals with a 40% pay cut, and the work and/or location seems to be an improvement, then go for it. Keep in mind that if you work for 60% in Asia (which I've found to be at least as expensive as NA or Europe), it might be hard to justify your full rate if you return to the Old World.

David

 

[GregLocock]

I fell for that story once. They ended up giving me a 40% pay rise eventually.


Cheers

Greg Locock


New here? Try reading these, they might help FAQ731-376

http://eng-tips.com/market.cfm?

 

[TPL]

Why don't you try to figure out if your "top-class engineering company in South-East Asia" charges their clients 60% of what your current or recent employers charge?

For sure you can live pretty cheaply in SE Asia...lots of people who live there don't have much choice, but I'm not sure if you would actually enjoy that standard of living.

Wouldn't take a lot of effort to scan the internet to check basics like rent for the type of accomodation that you would expect.

 

[micalbrch]

SE Asia can be Singapore (bloody expensive) or a remote place in Indonesia (much cheaper). No, I would not move away from a good job for 60 % of my salary just because somebody tells me that living there is cheaper. If there was no need to move, I would not do it for less than 15 % salary increase.

 

[PeterStock]

I took a small pay reduction in taking my current position in Puerto Rico in part because the cost of living was expected to be less. I have found that in fact in some ways the cost of living is more than it was when we lived south of Boston. If you do take a pay reduction, be sure the costs are in line with your expectation before taking the job.

Peter Stockhausen
Senior Design Analyst (Checker)
Infotech Aerospace Services

http://www.infotechpr.net

 

[racookpe1978]

The "cost of living" may be lower overseas than here (continental US) <b>BUT</b> very, very often that is ONLY because the "method" of living - what the locals consider the "standard level" of living is much, much lower.

Even in Spain - relatively high up the daisy chain in terms of the world at large, if I were living on the "economy" rather than on a per diem and in a hotel while working the jobsite, I find the day-to-expenses actually higher, and the tools, common items at the hardware stores, common clothes at the clothes stores, eyeglasses, etc all more expensive and with lower levels of choices than at home.

Food? Sure. A little bit less. But then I'd have to be prepping, cleaning, and cooking and cleaning up 2-4 hours a night too.