Robert here, writing from Hong Kong, where Robert and I are slammed all week. I just now managed to break away from some clients we were having drinks with at Sevva to get on a computer and quickly punch out a new post. I plan to meet these same clients at another location in about 30 minutes, so am typing quickly.
It has been an extremely busy time for us in Asia recently, as there is a lot of pending partner movement in HK / China and we are representing a number of such senior attorneys. We have made a few US associate placements in Asia in the past two weeks, but associate hiring is falling significantly.
I was scheduled to return to Miami two weeks ago, but have extended this Asia trip now twice, due to all the partner work we have going on here. Robert had already returned to Austin from this Asia trip a few weeks ago, but turned around to come back to HK for this intense week of work. I am flying to Atlanta this Saturday for the Gators’ SEC championship celebration, so my trip extensions will be coming to an end if I can help it, but plan to be back in Asia in a few weeks.
Robert and I are in a great position, due to our contacts in the Asia markets, to provide partner level candidates an accurate assessment of their overall marketability, in the most discreet manner. We have a reputation in the market and thus a number of HK / China partner-level attorneys are reaching out to us while we are in the area. Robert in particular has made a tremendous amount of partner placements in the past few years. I have been focusing more on associates during the boom, but will be placing more partners in ’09 and beyond, mainly in Asia.
Some of these partners we are talking to will move and most will remain in their current positions for the long-term, but they are all being smart and pro-active in managing their careers. In an economic slow down there is usually an increase in partner movement and it is at the end of the year when partners open to a move start looking (due to a lot of back end pay that is typical in partner compensation structure).
As promised, albeit with some delay due to a slammed schedule, this post will give you a basic understanding of the additional allowances (in addition to standard expat allowance) that associates may receive due to having children with them in Asia. Firms in Asia are all over the place when it comes to additional allowances for children. About twenty times per year, I get a call / email from a hiring partner at a US practice in Asia asking for my recommendation / assistance on putting together total compensation package for a new associate hire or internal transfer, when school-aged children are involved.
Tuition Reimbursement. Most US associates in Asia do not have school-aged children, but those that do are facing private tuition for each child that can easily run over $20,000 US per year (in some cases significantly more). Regarding school tuition reimbursement, there are a minority of US and British firms that do in fact fully reimburse the full tuition for all a US associate’s children, with no limitations. A few firms I know of even pay for the significant fee to move associates’ children to the front of waiting list for a particular private school. The majority of US and British firms do not offer full tuition reimbursement, however, and there are many firms, including some top 10 US firms, that do not offer any tuition reimbursement whatsoever. Some firms offer a ceiling on tuition reimbursement, such as, for example, up to $15,000 US per child. Keep in mind that most firms that do offer tuition reimbursement will take into account whether an associate’s working spouse has such tuition reimbursement coming from his / her employer.
Extra Cash. As we posted the details on a few weeks ago (and also in prior posts), US associates at most major US and British firms in Asia receive generous expat / cola / housing allowances, in addition to their top market NYC base salaries and bonuses. A majority of these firms will provide some additional allowances to associates who have children. Some firms offer $10,000 US more and others offer $20,000 US more annually. This is typically done to cover additional housing expenses, as well as help with educational expenses (although some firms that offer extra cash also offer tuition reimbursement). Some firms that offer extra cash only do so for school aged children, although most firms do not focus on age in such a manner when doling out this cash. Also, some firms offer the additional cash amount multiplied by number of children, whereas others offer the same additional amount for any associate with one child or more, regardless of the total number of children.
There are a few firms that are very generous with such additional allowances and offer multiple times more additional cash for the second child, with the idea being that a decent size 3br apartment in a place like Hong Kong or Tokyo, for example, can be very expensive. For example, one top 20 US firm in Hong Kong offers $60,000 expat allowance for their US associates with no children, $80,000 for one child, and $145,000 US for two children (this firm does not also tuition reimburse, but no need to with such cash allowances). As an example of how much the Asia markets are in flux regarding additional allowances for children, the same firm offers $0 total expat allowance in Singapore, regardless of the number of children.
In most cases we strongly recommend that associates not focus on expat allowance differences between target firms when deciding which offer to accept. However, an associate with school aged children simply cannot ignore what can be vast differences in total compensation packages. I have placed associates in Asia who have had competing offers as much as $80,000 apart annually, due to multiple school aged children and one firm not offering any additional allowance, while another offers full tuition reimbursement and additional cash. I have also seen situations where associates in Asia with school aged children were unable to consider what would have been a strong lateral move, due to the prospective new firm not being able to offer to cover school tuition (these are most often policy decisions and not something that partners have the authority to offer candidates, even if it is a deal breaker issue for a highly sought after lateral).
We strongly recommend that any US associate with school aged children be aware of a potential target firm’s policies regarding additional allowances for children before starting a job search. Otherwise, a long interview process can turn out to be a waste of time at some firms. A recruiter that is very tied into the market, who has seen relevant offers letters from a particular target firm, will have this information. Both Robert and I certainly qualify. Most recruiters in the Asia market will unfortunately not have this info across the board at all top firms. I am sure a lot of US based recruiters working in Asia will get more info from these abovethelaw posts than from any direct experience, so ask a prospective recruiter / agent for specific numbers on each particular target firm and not just general information on the market. Firms typically keep these numbers close to the vest and frankly some firms in Asia have not yet deal with the issue of an associate hire with school aged children, and it takes a recruiter that has close ties with partners at such firms to know what their thoughts are on such a hypothetical hire.
We can also put prospective candidates in touch with our placed associates in Asia who have children, as well as other attorneys we know in Asia with children. Most are happy to give advice on what it is like to raise children in their particular Asia market.
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