Germany hasthe world's fourth-largest economyand isthe powerhouse in the European economy, being featured as the largest in the European Union. The country is a major hub for business in Europe. Both the service and the manufacturing industries are extremely buoyant in Germany, a country respected world-over for its automotive and engineering sectors.German culture standards and values are central to doing good business.Whether you're looking to move to the Federal Republic of Germany for work or you want to trade with a German business, understanding the German business culture and other cultural standards is paramount to your success. Knowing the German business culture is important to start new endeavors Business is taken seriously and German values such asfairness,loyalty,punctuality,professionalism, andreliabilityshould be reciprocated. In general, German business mentality means that negotiations are fair and agreements are rarely changed or disrupted at the last minute.Transparencyis also importantat a German company, which means that corruption is uncommon, as is gift-giving (even if it's just a small gift) or handing out compliments in order to charm your way to a good deal. Ethicsarecentralto daily German business practice, as iscorporate social responsibility. Communication in business culture and meetings is formal and employees speak to each other politely but efficiently. German work ethics mean employees always turn up on time and do a full day's work, they are in turn rewarded withfair payandgood working conditions. Everyone in Germany wants everytask, big or small,to be completed to its best, on time, and with high satisfaction for the end consumer.Germans place a strong emphasis on the qualityof their products and services. Employees are generally loyal to their employers and share their desire to create high-quality products and provide dependable services. A vital feature in the German business culture Shaking hands is atypical gesture in good German business etiquette. It is expected that you shake hands with any client, colleague, employer, or employee at the first meeting. Depending on where you work, it may even be commonplace to shake hands with customers. Examples of this may be at an estate agency or car sales showroom. When you shake hands in Germany,shake with your right handbutensure your left hand is not in your pocket, which may be seen as rude. It is also important to maintain eye contact during the handshake. It's not just in the business world or business relationships where shaking hands is common, it's also common amongst friends and even family, especially men. It is common amongst both genders when meeting someone for the first time. Unlike the more touchy-feely cultures of other European countries like Spain, France, or Italy,personal space in Germany is safeguarded. If you have ever been to Britain, for example, you will find the German shaking hands culture is very similar. As a newcomer to Germany, the safest thing to do is always shake the hand of any new person you meet. The German handshake is strong: so make sure yours is also a firm handshake. Always greet business associates, German colleagues, and clients with a German background with ahandshakeand useformal titles. This is especially important the first time you meet, for example, at a new workplace. German people are not aggressive or pushy. It is normal to wait for a person to finish speaking before you speak and treat everyone with respect and dignity.Maintain good eye contactwhen you speak,keep hands out of pocketsanduse a person's surname with the titlesFrauorHerr(Mrs/Mr) until first name terms have been established. How to dress in the workplace In Germany, there is aformal dress codein place in the majority of workplaces. Men generally wear dark suits and ties, whilst women wear simple trousers or skirt suits. In young oremerging sectors companiessuch as PR agencies or tech start-ups, especially those located in the more cosmopolitan cities like Berlin, it iscommon to find people dress informally to work. If in doubt, however, always opt for more formal, good-quality attire. It would certainly be frowned upon to turn up for your first day in trainers and casual clothes when you should be wearing a suit. This German stereotype is very much true Punctuality isvery importantto Germansand is especially vital in business.Always attempt to arrive earlyand allow plenty of time to get to where you need to be. If you think you may be running late for work or for a business meeting, always call as early as you can to let your manager or the person you are meeting know in advance. In Germany,punctuality is a sign of reliabilityand you may be judged harshly if you are late, even once. Whether it's a job interview at a company, an appointment for a residence permit or even an appointment with an estate agent, get in the habit of arriving early. On social occasions, it is also customary to arrive quite early. Other aspects of the German business culture Germans tend to operatefairer business practicesthan you may experience in other countries and cultures.This sense of fairness includesequal pay,good working conditions, andfair disciplinary practices. It also means that employees are not generally expected to work more than their contracted hours. Most offices close at 5 pm Monday to Thursday and 4 pm on a Friday.One's personal life is highly valued, and there isa strict separation between people's personal lives and work life. German businesses also rewardloyalty, both to their employees and to clients. In Germany it is likely that a business chooses the same client for many years, enjoying the advantages that loyalty offers, rather than constantly looking for cheaper services elsewhere. Germans always do business in acivilized manner, preferring to find a compromise between two parties rather than force their views on the other party in an aggressive or pushy manner. In Germany,boards tend to feature many more womenthan most countries (although there is still an imbalance). In 2015 government guidelines were published to advise thatnon-executive boards should beat least 30% female. This improved gender balance tends to mean a more nuanced and human-centeredapproach to problem-solving and less pushy or domineering practices. Pitch close to where you want to be. Germans are not accustomed to excessive price negotiations. They want to know what a product is worth and what you want for it so they can plan. Germansnegotiatein afair,open, andtransparentmanner.Claims should be backed up with data and fair prices should be offered or requested.All negotiations should be undertaken in formal language and it's important to be early for any meetings or appointments with German businesses or German colleagues.Doing Business in Germany
Shaking Hands
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How do you greet in a German business?
How can I be polite in Germany?
Business Dress Code
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Punctuality & Reliability
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Fairness & Loyalty
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How do you negotiate in Germany?
FAQs
What is the business culture like in Germany? ›
German business culture is marked by organisation, planning and perfectionism. Business relations are very formal, and they reflect the German values of order, privacy and punctuality. A strict vertical hierarchy is established and respected, and the decision-making process is held at the top of the company.
What is the business ethic in Germany? ›Cultural influence on business etiquette
Germans are forward-thinking, structured, and highly detail-oriented. In line with this mentality that favours helpful structures, maintaining clear lines of distinction between people, places, and things is highly valued. The work and personal lives are kept separate.
In-person communication in Germany:
Shake hands to say hello and goodbye—to everyone. Keep it firm and brief. Use a person's title and last name. Don't be touchy.
Germany is consistently ranked as one of the most attractive investment destinations based on its stable legal environment, reliable infrastructure, highly skilled workforce, and world-class research and development.
What is the German attitude to work? ›Work-life balance is a key aspect of German work culture. Germans believe in maintaining a healthy equilibrium between work and personal life. They value leisure time, family, and personal interests and encourage employees to prioritize their well-being.
What are German company values? ›Business is taken seriously and German values such as fairness, loyalty, punctuality, professionalism, and reliability should be reciprocated. In general, German business mentality means that negotiations are fair and agreements are rarely changed or disrupted at the last minute.
What is the work style in Germany? ›Punctuality and order are also deeply ingrained in the German work culture. Germans place a high value on being on time and emphasise the role of organisation and structure in all areas of life. They take pride in achieving high levels of performance and productivity by making hard work and dedication a top priority.
What are the key values of German culture? ›Order and organization: Germans are often considered highly efficient and matter-of-fact people. They value punctuality, rules, and order. Privacy and space: Personal information is often kept private, and it is common for Germans to keep a clear distinction between their personal and professional lives.
Why do Germans have a strong work ethic? ›A Strong Will to Work
The Protestant Reformation of the sixteenth century has influenced the German work ethic, as well as the work ethic of English-speaking countries. Some of the important Reformation ideals included work being good in and of itself, especially in light of its character-building effects.
Maintain eye contact, offer a firm handshake, smile, and greet the other person with a simple 'Guten tag' (Good day) or 'Hallo. ' Address colleagues and business partners using their professional titles, 'Sir' or 'Ma'am,' and last names until you're invited to use their first names.
What is the behavior of German customers? ›
German consumers are known for their practical and rational approach to purchasing decisions. They value quality and durability and are willing to pay a premium for products that meet these criteria, especially for products visible to the public.
What is the management style in Germany? ›In German organisations, there is a clear chain of command in each department. Information and instructions are passed downwards. This does not mean, however, that German management is exclusively autocratic. There is also considerable value placed on consensus.
What is the dress code for business in Germany? ›Business dress in Germany is understated, formal and conservative. Businessmen should wear dark-colored, conservative business suits, ties, and white shirts. Women also dress conservatively, in dark suits and white blouses or conservative dresses. This form of dress is observed even in comparatively warm weather.
What is the business communication style in Germany? ›Communication in German business culture is direct and unambiguous. Germans value clear, concise, and fact-based discussions. They appreciate honesty and straightforwardness and expect the same from their business partners.
What business is Germany known for? ›Germany's principal industries include machine building, automobiles, electrical engineering and electronics, chemicals, and food processing.
How is work culture in Germany? ›Punctuality and order are also deeply ingrained in the German work culture. Germans place a high value on being on time and emphasise the role of organisation and structure in all areas of life. They take pride in achieving high levels of performance and productivity by making hard work and dedication a top priority.
What is typical for German culture? ›German family values include respect, responsibility, and a strong sense of community. Social etiquette usually includes punctuality, direct communication, and a high regard for privacy.