No longer can a firm hire rising stars on the cheap in the emerging markets. New data presented by global executive search firm Russell Reynolds Associates shows significant convergence in compensation across markets, as wages rise at all levels within firms.
Salaries in the emerging markets are moving towards par with compensation levels in Europe and the US. The trend is driven by a number of factors, including ease of global movement, and rising demand for talented professionals in hot markets like China and India.
Traditional expatriate benefits like housing, tuition allowance, cars and drivers, specialized insurance and cost of living adjustments are now showing up in the packages of locals as well.
Furthermore, carry is being appropriated increasingly at a more junior level, as firms try to create “golden handcuffs” to prevent talent from jumping ship.
“Frontier markets” however – regions like Southeast Asia and sub-Saharan Africa – still tend to carry a local market discount, Russell Reynolds notes. But who can say for how long?
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