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Wages for workers sent abroad jump

January 19, 2011. Globes: Tzahi Hoffman

Salaries of Israeli high-tech employees who relocate abroad were 10-12% higher in 2010 than in 2009, according to jobs placement company Relocation Jobs Ltd. The upward trend intensified in the fourth quarter of 2010, which Relocation Jobs CEO Eynat Guez attributes to growth in the Israeli and international markets and a thawing in a hiring freeze.

"Relocation to emerging markets, such as Eastern Europe, was often a kind of default option for employees who could not find work in the domestic market. Now that companies are again hiring, it's necessary to offer better salary packages to attract high-quality movement to foreign emerging markets," said Guez.

Salaries for relocating to Western countries are adjusted to the local salary levels. Local salaries in these countries have begun to recover from the plunge in salaries in mid-2009. For example, a programmer whose salary in the US was $80,000 toward the end of the crisis, is now $120,000, and salaries for employees relocating there are updated accordingly.

"The fall in the dollar also plays a role in higher salaries," says Guez. "It's important to understand that an Israeli who compares working in Israel with working abroad examines the salary through local eyes. The plunge and increased lack of confidence in the dollar means that many workers are making higher salary demands to avoid erosion in their general savings."

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