Darcy Jacobsen
13 min read
Do you know the Law of Jante? Are you schooled on lingonberries and lagom? Do you know how recognition is unique in Scandinavia? In our ongoing series on Recognizing across Cultures, we will discuss the cultural and business norms on a region by region basis and use our experience to give you some recommendations for making recognition relevant and powerful for your employees.
When it comes to culture, Scandinavia is unquestionably the world’s darling. Cooperative, egalitarian and practical—never showy, acquisitive or excessive—culture in the three Scandinavian countries: Sweden, Norway and Denmark (as well as in their Nordic cousins Finland and Iceland) does seem to have achieved a perfect balance of personal comfort, economic strength and societal welfare.
This utopia appears to extend into the workplace as well—where you might find interns and senior leaders sitting at the same table hashing out ideas, and where IKEA founder Ingvar Kamprad is famous for taking the bus and eating meatballs and lingonberry jam in his own canteen.
It might seem, at first glance, like such an equality- and values-driven culture would be very good at recognition and reward. Yet in one recent study of Danes, the biggest factor driving work unhappiness was found to be “a lack of praise and recognition.”
The truth is, a little more thoughtful analysis and observation is required to really understand the complex role of recognition in Scandinavian culture. Some may wonder what role reward and recognition could possibly play in a work culture that is already so intrinsically motivated? They may wonder how growing moves toward meritocracy can comfortably exist in a collectivist society? They may wonder how a culture so self-effacing is uniquely evolving to embrace appreciation and reward.
More than elsewhere in the world, Scandinavian leaders are cautious about simply importing what they perceive as self-aggrandizing “American-style” recognition programs. Such misunderstandings or mismatches can cause ill-considered recognition programs to misfire or fail in Nordic workplaces. But Scandinavian workers need recognition as much—if not more—than their colleagues in other regions. And when recognition and gratitude are conducted in a thoughtful and truly Scandinavian way, they have the potential to both protect the special cultures of Nordic business and help employees thrive.
In a recent MBA study of Nordic IT workers at Sesca, Sony Ericsson, and Conagri, researchers found that a majority of the respondents would appreciate feedback from their employers. They write: “individualized rewards and recognitions motivate an employee more than general ones. Receiving a personal feedback for a well done work from the manager or a colleague, maintains the employee in a positive thinking way about their job and make them give an extra mile to achieve the organization’s goals.” Personal feedback and recognition not only fit into the Nordic culture, but there is a strong need for them.
I’d like to begin by saying I’m aware that it is taking a great deal of liberty to generalize the cultures of five very unique and diverse Nordic countries! Sweden and Denmark are admittedly more densely populated, urban, tech-focused and entrepreneurial than their neighbors. Norway’s seafaring economy is more focused on oil and gas. Technically a Nordic country and not Scandinavian, Finland is known as more remote, independent and industrial. Likewise, Iceland has faced very unique economic challenges over the past decade. All five countries have their unique characteristics, norms and traditions.
However, there are enough cultural through-lines that we do feel comfortable talking about these countries as a region, with common characteristics that we have noticed impacting business and work life.
For example, all five countries here have seen heavy growth in the service and knowledge-based industries. All five appear in the top 15 countries listed by GDP per capita. They are also five of the top 8 countries listed at the top of the World Happiness Report. All except Iceland also scored very high on a Gallup poll of irreligious countries—and Iceland wasn’t very far behind. Perhaps more importantly in business terms, all these countries share an economic and social model: free market economies heavily taxed to support broad-reaching welfare states focused on gender equality and quality of life. They are also among the best performing world economies in the last decade (again, excepting Iceland’s recent economic setbacks)
Here’s how Nordic culture breaks down on the framework we’ve been using for this series:
It might surprise you to learn that these five countries, with their extensive system of welfare, and disdain for attention-seeking, score among the highest in the world on Hofstede’s measure of Individualism. Despite a strongly collectivist social fabric, they highly value self-sufficiency, individual responsibility, and decision-making. But they are also extraordinarily democratic. At work, as Hofstede explains: ”the employer/employee relationship is a contract based on mutual advantage; hiring and promotion decisions are supposed to be based on merit only; management is the management of individuals.”
Also in Hofstede’s model, Nordic cultures score among the lowest on masculinity—placing a high value on relationships and quality of life over materialism and competition. Likewise, they score fairly low on uncertainty avoidance—which implies higher tolerance levels, less shame associated with failure, and a strong belief in common sense (yet a desire to have policies and regulations to guide behavior).
Nordic countries, like many individualistic cultures, are also moderately monochronic—emphasizing precision, rules, schedule keeping and contracts.
Here’s how the region as a whole looks to us through the Molinsky framework for cultural variables:
Directness is probably the trickiest variable to define for this region. Nordic countries are known for their matter-of-fact desire to “not waste words, [and] say how it is.” Compromise solutions based on complete honesty are considered to be important values in doing business here. At the same time, with low power-distances in most Scandinavian countries, managers are also known for their tendency to be non-directive in their instructions and to expect workers in this highly individual society to problem-solve for themselves to achieve set goals. (A low power distance culture means that they have relatively flat hierarchies and expect more direct input from all levels than in high power distance cultures.)
Nordic cultures are also famed for being somewhat reserved in their personal expression, maintaining distance between work and private lives. That accounts for a lower rating on enthusiasm. However, they are extraordinarily open, matter-of-fact, and informal as a whole—highly valuing transparency in business and personal transactions, which pulls the rating in the other direction for personal disclosure.
Despite high levels of autonomy and individualism, Scandinavians at work are consensus-driven team players. They are culturally conditioned not to self-promote—almost to a fault (see below on the Law of Jante), and rank among the lowest in the world for self-promotion. The flip side of this coin is their tendency toward flat organizations and lack of hierarchy, along with a very relaxed and casual business culture and low rankings on formality.
They may have a reputation for abstemiousness, minimalism, and lagom (see also below), but Hofstede also rates them moderately high in their scale of indulgence vs restraint. Says Hofstede: “a high score in Indulgence generally exhibits a willingness to realise their impulses and desires with regard to enjoying life and having fun. They possess a positive attitude and have a tendency towards optimism.”
Lagom and lingonberries – Recognition in Scandanavia and the Nordics
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After years of stable growth and prosperity that have been the envy of other world economies, Nordic countries are in the midst of several shifts with regard to their workforce climate. Instability in oil and gas prices is causing fluctuation in Norwegian labor markets—which had been experiencing some strain due to competition for skilled labor and an aging workforce. Conversely, a tech boom in Sweden is fueling the need for more skilled knowledge workers in that economy. Across the region younger workers are experiencing higher rates of unemployment, yet nonetheless entering the workforce in higher and higher numbers as baby boomers age out.
Development is critical to Scandinavian and Nordic employees—in particular millennials. In the FöretagsBarometern 2014 study from Universum, the top three most prized qualities the next generation of talent look for in their employers were found by the survey to be a creative and dynamic work environment coupled with leaders who supported individuals’ development and companies that offered a good platform for the their future career.
The highest social capital region of the world, the Nordic countries have high civic participation, high ethnic homogeneity, high social and economic equality, and low public corruption. The result, according to the World Happiness Report, is “a very high level of social trust not matched almost anywhere else in the world.” This social trust is the strong fabric that holds work cultures together, and businesses work to earn and protect it.
Engagement is holding its own in the Nordic region, but could be better. A recent study from Effectory International placed the Nordics on the whole as the most engaged region in Europe—with a combined engagement score of 27.3% (vs UK and Ireland, lowest at 17.4%). This is much higher than the European average of 23.9%, however, it still falls rather short of the Global engagement average of 30.0%.
Scandinavian cultures are consensus cultures. Largely lacking in hierarchy, employees are expected to voice ideas and solve problems at all levels of the organization. A recent paper from the Hays Group on Gen Y and the World of Work in Sweden observed that organizations in this region are marked by:
According to that same report, in Sweden, millennials “largely steer away from using the term ‘leader’ when it comes to describing their ideal boss.” “Instead, like a lot of their peers in other Western countries, they want a coach or mentor most of all. In keeping with the traditional Swedish collectivist approach to business, they are also twice as likely to see their ideal boss as a peer compared to our global average.”
To understand Scandinavian business culture, you must first understand Janteloven, and its partner lagom, which pervade this region’s culture at all levels:
This Jantelov culture drives the modest business approach of the Nordic countries, and is one of the reasons why the booming tech industry in Sweden doesn’t get quite the same spotlight that, say, the Berlin tech sector does—despite global juggernauts such as Skype and Spotify, and apps that top “best of” lists year after year. This strict, self-imposed modesty can cause frustration and disengagement, though. “In my country,” writes blogger Peter Sterlacci, “people sit and wait for managers and peers to recognize them. Some of us wait a lifetime for a well-deserved recognition that never comes our way. We don’t wave our hand and say ‘Hey, I’m good at this!’ Why? Because we’re not raised that way.”
For those who come from cultures such as the US, where people are sometimes encouraged to be strongly self-promotional and establish a ‘personal brand’, these philosophies can seem harsh. But even in Scandinavia the strictures are beginning to be defied. (Simply Google Jantelov and look at the images and you’ll see.) Though they are sometimes referred to as “Jante’s Shield,” and seen as protective of Nordic culture and values, younger Scandinavians are pushing back more and more against the Jantelov. Many say its influence is waning. As Swedish blogger Christina Andersson writes: “Nowadays, Swedes rather laugh at Jante and his rather depressing rules. We, too, want to think that we are special and good. However, Jante’s spirit still exists and forms us as citizens.” Most agree, however, that lagom is the surest way to carry that spirit forward as Jantelov slowly relaxes.
Recognition is a human need, and even the presence of Jantelov does not minimize the human psychological desire of Scandinavians to feel accepted and appreciated for doing a good job. It is important to understand that—despite the collectivist strictures of Jante—Nordic workers are highly individualist, and therefore require feedback to feel they are achieving their goals, to feel flow, and to feel an important part of the whole. Says author Michael Booth in his book The Almost Nearly Perfect People, “The important part [of Jante] is the inclusiveness: we want to include you, but that is only possible if you are equal.” Recognition, when it has a broad reach and light footprint, is a perfect vehicle for that inclusiveness.
One of the most interesting aspects of recognition is that it carries no stigma of self-aggrandizement. Indeed, recognition is an opportunity for others to tell an employee that s/he is a necessary and productive member of the in-group, without that employee needing to step forward to demand needed feedback or positive attention. A well-functioning recognition system, therefore, will provide consistent, ongoing feedback to all members of a team, at a level that is regulated by the group itself, and therefore always lagom.
Recognition is particularly desirable for the region’s millennials. According to the Hays research cited earlier, “The majority of Gen Y Sweden define career success as achieving job satisfaction. When asked what brings the most job satisfaction, 60 per cent say feeling valued and appreciated.” It is unsurprising then, that the report goes on to recommend reward and recognition as a solution for retaining Gen Y in this region.
Here are a few more ways in which recognition aligns with Nordic culture:
So how can you recognize effectively in Scandinavia and Nordic Countries? Here are a few pointers:
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