> Thandisizwe Mgudlwa
African government's and their
stakeholders must be very concerned and bothered by the fact that only a
hand full of African countries have made it to the top 100 city's with a
high standard of living global survey.
At least five African
cities which are also economic hives in their countries have made it to
the list of the 100 Mercer's top 100 world’s highest quality of living
destinations.
This is Mercer's 19th Quality of Living ranking.
Mercer produces worldwide quality-of-living rankings annually from its
Worldwide Quality of Living Surveys and individual reports are produced
for each city surveyed.
The three South African cities that have
made the top 100 are Durban (87) ranked the highest for quality of
living within South Africa, which followed by Cape Town (94) and
Johannesburg (96).
While the other two African countries in the
top 100 include Port Louis, in Mauritius, which tops Africa chart at
84th spot and Port Louis is also the only Africa city which made it to
top 100 rankings within the category of highest for infrastructure in
94th place.
The study further notes that despite increased
political and financial volatility in South Africa. "Its cities fell
within the top 100 of the world’s highest quality of living and remain
attractive destinations for expanding business operations and sending
expatriates on assignment, according to Mercer’s19th annual."
Ilya
Bonic, senior partner and president of Mercer’s Career business,
commented “Economic instability, social unrest, and growing political
upheaval all add to the complex challenge multinational companies face
when analysing quality of living for their expatriate workforce,” said
Bonic,“For multinationals and governments it is vital to have quality of
living information that is accurate, detailed, and reliable. It not
only enables these employers to compensate employees appropriately, but
it also provides a planning benchmark and insights into the
often-sensitive operational environment that surrounds their workforce.
“In
uncertain times, organisations that plan to establish themselves and
send staff to a new location should ensure they get a complete picture
of the city, including its viability as a business location and its
attractiveness to key talent,” Mr Bonic added.
Meanwhile, Vienna
occupies first place for overall quality of living for the 8th year
running, with the rest of the top-ten list mostly filled by European
cities: Zurich is in second place, with Munich (4), Dusseldorf (6),
Frankfurt (7), Geneva (8), Copenhagen (9), and Basel, a newcomer to the
list, in 10th place. The only non-European cities in the top ten are
Auckland (3) and Vancouver (5). The highest ranking cities in Asia and
Latin America are Singapore (25) and Montevideo (79), respectively.
Mercer’s
survey also includes a city infrastructure ranking that assesses each
city’s supply of electricity, drinking water, telephone and mail
services, and public transportation as well as traffic congestion and
the range of international flights available from local airports.
Singapore tops the city infrastructure ranking, followed by Frankfurt
and Munich both in 2nd place. Baghdad (230) and Port au Prince (231)
rank last for city infrastructure.
Mercer’s authoritative survey
is one of the world’s most comprehensive and is conducted annually to
enable multinational companies and other organisations to compensate
employees fairly when placing them on international assignments. In
addition to valuable data, Mercer’s Quality of Living surveys provide
hardship premium recommendations for over 450 cities throughout the
world; this year’s ranking includes 231 of these cities, revealed the
survey.
Slagin Parakatil, Principal at Mercer and responsible for
its quality of living research said, “The success of foreign
assignments is influenced by issues such as ease of travel and
communication, sanitation standards, personal safety, and access to
public services,” notes Parakatil, “Multinational companies need
accurate and timely information to help calculate fair and consistent
expatriate compensation – a real challenge in locations with a
compromised quality of living.”
Parakatil added, “A city’s
infrastructure, or rather the lack thereof, can considerably affect the
quality of living that expatriates and their families experience on a
daily basis. Access to a variety of transport options, being connected
locally and internationally, and access to electricity and drinkable
water are among the essential needs of expatriates arriving in a new
location on assignment. A well-developed infrastructure can also be a
key competitive advantage for cities and municipalities trying to
attract multinational companies, talent, and foreign investments.”
Dubai
(74) continues to rank highest for quality of living across the Middle
East, rising one position in this year’s ranking, followed closely by
Abu Dhabi (79), which climbed three spots. Damascus (225) in Syria,
Sana’a (229) in Yemen and Baghdad (231) in Iraq are the region’s three
lowest-ranked cities for quality of living.
“Cities that rank
high in the city infrastructure list provide a combination of top-notch
local and international airport facilities, varied and extended coverage
through their local transportation networks, and innovative solutions
such as smart technology and alternative energy,” added Parakatil. “Most
cities now align variety, reliability, technology, and sustainability
when designing infrastructure for the future.”
In North America,
Canadian cities took the top positions in the ranking. Vancouver (5) is
again the region’s highest ranking city for quality of living. Toronto
and Ottawa follow in 16th and 18th place respectively, whereas San
Francisco (29) is the highest ranking US city, followed by Boston (35),
Honolulu (36), New York (44), and Seattle (45). High crime rates in Los
Angeles (58) and Chicago (47) resulted in these cities dropping nine and
four places respectively. Monterrey (110) is the highest ranking city
in Mexico, while the country’s capital, Mexico City, stands in 128th
position. In South America, Montevideo (79) ranks highest for quality of
living, followed by Buenos Aires (93) and Santiago (95). La Paz (157)
and Caracas (189) are the lowest ranking cities in the region, according
to the report.
Moreover, the study reports, "comparative
quality-of-living indexes between a base city and host city are
available, as are multiple-city comparisons.
The data was largely
analysed between September and November 2016, and it will be updated
regularly to account for changing circumstances. In particular, the
assessments will be revised to reflect significant political, economic,
and environmental developments.The list of rankings is provided to media
for reference, and should not be published in full. The top 10 and
bottom 10 cities in either list may be reproduced in a table.
The
information and data obtained through the Quality of Living reports are
for information purposes only and are intended for use by multinational
organisations, government agencies, and municipalities. They are not
designed or intended for use as the basis for foreign investment or
tourism. In no event will Mercer be liable for any decision made or
action taken in reliance of the results obtained through the use of, or
the information or data contained in, the reports. While the reports
have been prepared based upon sources, information, and systems believed
to be reliable and accurate, they are provided on an “as-is” basis, and
Mercer accepts no responsibility/liability for the validity/accuracy
(or otherwise) of the resources/data used to compile the reports. Mercer
and its affiliates make no representations or warranties with respect
to the reports, and disclaim all express, implied and statutory
warranties of any kind, including, representations and implied
warranties of quality, accuracy, timeliness, completeness,
merchantability, and fitness for a particular purpose.
Companies
need to determine expatriate compensation packages rationally,
consistently, and systematically using reliable data. Providing
incentives to reward and recognise the effort that employees and their
families make when taking on international assignments remains a typical
practice, particularly for difficult locations.
Two common
incentives include a quality-of-living allowance and a mobility premium,
a quality-of-living or “hardship” allowance compensates for a decrease
in the quality of living between home and host locations; a mobility
premium simply compensates for the inconvenience of being uprooted and
having to work in another country.
A quality-of-living allowance is
typically location-related, while a mobility premium is usually
independent of the host location. Some multinational companies combine
these premiums, but the vast majority provides them separately."
More
broadly, "Mercer also helps municipalities to assess factors that can
improve their quality of living rankings. In a global environment,
employers have many choices about where to deploy their mobile employees
and set up new business. A city’s quality of living can be an important
variable for employers to consider.
Leaders in many cities want
to understand the specific factors that affect their residents’ quality
of living and address those issues that lower a city’s overall
quality-of-living ranking. Mercer advises municipalities by using a
holistic approach that addresses the goals of progressing towards
excellence and attracting both multinational companies and globally
mobile talent by improving the elements that are measured in its Quality
of Living survey, " Mercer further reveals.
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