Risk managers are more willing to risk a move overseas

The job squeeze in investment banking means that a growing number of finance professionals are willing to move abroad to remain in work.

This was the finding of a survey by Elliott Ross Associates, the risk management and derivatives analytics recruitment firm. Nearly two thirds of 320 investment bank staff who responded to the survey said they were more prepared to relocate this year than last.

Economic factors and the prospect of a better future overseas were the most popular reasons for the change of heart.

Worries about a spouse's career or children's schooling remained a concern for many, however, as did concerns about new cultures.

Cameron Thomson, the director at Elliott Ross who undertook the survey among risk management and derivatives staff, said its findings were not unexpected. "There is a pattern of behaviour. More people are willing to work abroad, but they are being deterred by inevitable things like family issues."

To outweigh the disadvantages of uprooting people, Thomson says most expatriates earn between 1.5 and 1.7 times their home salary. This is supplemented by extras such as subsidised accommodation and school fees.

Thomson said schooling was a particular concern for French risk management professionals in London, many of whom had a poor impression of the British education system. It was not uncommon for French professionals to refuse relocation until a school place had been secured at a Lycée in South Kensington.

Meanwhile, expatriates from Frankfurt often come to the UK with a generous housing allowance, reflecting the higher accommodation costs in London. These are put at more than 2:1 by an Economist Intelligence Unit cost of living survey.

Not everyone is well recompensed for moving abroad however. Thomson said cost cutting is leading some banks to relocate people on standard packages. Banks are also only using expatriates where it is strictly necessary. "To be eligible for expatriation you will have to be pretty senior, have globally transferable skills and have an unusual skillset", said Thomson.

Brian Hornsby, a partner in the expatriate tax practice at PriceWaterhouse Coopers, said reduced dependence on expatriates is part of a wider trend. Wherever possible, organisations are hiring people directly from local markets, or sending employees on short assignments that do not merit expatriate packages, he said.

Hornsby added that in the current climate, investment bank staff moving abroad could live to regret the decision: "There may not be a job to go come back to. In some cases, out of sight can mean out of mind."