Norway is top when it comes to quality of life and the highly educated labour force makes it an interesting market to set up business in. However do not underestimate the need to get to grips with the culture of these easy-going people.

On this page:

• Scandinavia is one of the most corruption-free areas in the world

  Norway and the EU
• Reruiting in Norway
• Business style
• Hierarchy
• Business meetings
• Negotiations
• Building trust
• Decision making
• Meeting and greeting
• Dress code
• Wining and dining
• The toast
• Humour

The European Union is constantly moving closer towards one market on various levels. However, not all European countries are fully part of the European Union's single market. Norway for instance is not an EU member, but the country has opted to sign the European Economic Area agreement (1 January 1994), which allows freedom of movement for labour. So, if your organisation is interested in expanding abroad, you might consider Norway as an option.

Norwegians are highly educated and well tuned to the emerging 'knowledge' society, but be prepared; they are used to good salaries, a high standard of living and long vacation breaks with five to six weeks summer holiday. And their country has been rated the number one country to live in, so your offer has to be compelling!

As Lisbeth Vassaas, Head of the Euro Info Centre in Trondheim says, "Norway was rated last year by several international indexes as the best country to live and work. And we do have a good work climate combined with a beautiful country. Employees have a lot of rights here in Norway. We work from 8am to 4pm, the government has just introduced the fifth summer holiday week and we enjoy our beautiful country during weekends when a lot of outdoor sporting takes place. But we are a hardworking nation too, with a lot to offer to the international business community."

During the last century Norway has evolved from being a mainly agrarian society to a high-tech country that belongs to the premier league of the world economy. It is one of the world's foremost oil exporting nations and they are leading in areas such as aquaculture, maritime industries, hydropower engineering, biotechnology, space-related technology and telecommunications. The knowledge society is booming in Norway with a focus on research and development (R&D) activities often in joint ventures with foreign companies. Norway exports 40 percent of its goods and services while imports correspond to one-third of the national GDP (GDP per capita is approximately USD 31.000).

"The oil industry and the health care sector are always in demand for international candidates," says Vassaas.  "We notice that Norway is getting more and more internationally focused and in Trondheim, well-known for its technical university and research institution SINTEF, we see an upcoming international and multicultural environment with foreign students and international visiting Professors," she says.

A good way of gaining access to the Norwegian labour force is through an advertisement in the daily paper Aftenposten, particularly the Thursday edition. Another option is using the network of public employment services. These arbeidskontorer can be of great help when tracing the right personnel.

Dealing with the Norwegians may seem easy at first glance; but although their manners are formal, they see openness and directness as virtues. This combination results in a reserved candidness. You see this for instance reflected in application letters; Norwegians tend to write short, factual and direct applications letters in which they will not shy away from describing themselves with qualifications such as 'easygoing', 'calm', 'honest' or say other rather personal things such as that they love nature or enjoy walking. However, their letter will usually start with the anonymous 'Dear Sir/Dear Madam', even if you have met previously.

The Norwegian management style is characterised as 'participative' and a manager is seen as a coach and very much as part of the team. Communication is open and consultative and goals are aimed for by the team as a whole.

Although every individual is responsible for his/her actions, decisions are hardly ever made without everyone being consulted. Although people at the 'top' make the decisions they will be very reluctant not to endorse the recommendations of project groups or lower managers. No social differences exist, either between the sexes or between ranks or age levels. The entire Norwegian society strives to be socially egalitarian. People are judged on their ideas and the experience and expertise they can bring to a team. Showing off success in a materialistic manner and authoritarian behaviour are both considered 'not done'.

In Norway business contacts can be set up without the help of intermediaries. In fact, Norwegians would be rather surprised if you used other people to arrange a business meeting for you. Please note that appointments should be set up well in advance. And be punctual. Even if you are only a few minutes late for a business meeting, call your counterpart and explain the delay.

Norwegians are direct and do not focus on rituals and social environments for negotiations. In an initial meeting Norwegians are ready to talk business after only a few minutes of small talk. Again you will be confronted with the Norwegian directness paired to a certain formality. At the start of meeting, shake hands with everyone in the room. You will find that, after some initial small talk, an exchange of business cards follows. Then the Norwegians will begin the meeting by suggesting a strict agenda.

Norwegians use steady, moderate eye contact—not as direct as that of Arabs and Latinos but more direct than Japanese and Asians.

Negotiators will be oriented towards facts and figures rather than the broader view. Make sure you bring a good business presentation. During your presentation, emphasise facts, benefits and profitability.

'New' is not necessarily better for Norwegians. New concepts have to be proven as high quality, practical and already well-tested. Do give an honest impression; you may even consider pointing out certain disadvantages. This will not be interpreted as a weakness, but will add to building trust with your Norwegian counterpart.

Building trust is—as it is in many other countries—key when negotiating in Norway. Do not over promise, and make sure that you keep your promises. Otherwise Norwegians quickly lose interest. If you have made a proposal you will need to stick to it. Turning around and changing or adding surprising new elements is generally not popular. It is also hard to renegotiate terms after an agreement has been made, even if circumstances have changed.

Hard-selling techniques will get you nowhere in Norway. Avoid bragging and exaggerations and make a well-documented presentation that gets your counterpart involved and lets him/her buy from you rather than you selling through one-way communication. Norwegians are usually not tactical negotiators. If they say your product is too expensive they probably mean it.

In Norwegian corporations there may be a low level of individual risk taking—making it difficult to get the final signature even when you have convinced the negotiator. To press for greater speed can easily backfire.

Business people are not addressed by their titles. Norwegians and Danes are generally less formal than Germans and Swedes and address each other rather informally. However, first names are used much less quickly than in the UK or US.

Avoid excessive gift giving or any other action that can be perceived as a bribe. Scandinavia probably ranks as the most corruption free area in the world. Moderately expensive Christmas gifts and logo items are acceptable. The most successful gift giving practice will be to ask your Norwegian host beforehand if he/she would like you to bring your tax-free quota when you fly in. Due to the high local prices for these popular items your initiative will almost certainly be appreciated and accepted.

Norwegian body language and tone of voice is less expressive than in North America and southern countries. Do not misinterpret this as lack of interest. Southern Europeans and South Americans should be aware that interrupting a Scandinavian speaker is considered rude.

Norwegians tend to dress conservatively. Men mainly wear suits and ties but they can also wear sport jackets occasionally. Women wear suits, dresses, or trousers or skirts with blouse. No matter how warm the weather, stockings/ tights are always preferred for women.

By tradition Norwegians eat to live—unlike other European countries where meals are culture. Although things have changed and there is a strong international influx, Norway still does not have a lunch culture similar to that of Sweden or France. Twenty years ago you could hardly find a restaurant serving warm lunches in Norwegian cities.

A female business visitor will have no problem inviting to lunch or dinner and paying the bill. Alcoholic beverages during lunch are limited and after-work cocktails are not very common. The person who invites pays the bill. However, if you have been invited you might make a slight effort to pay the bill (but do not insist).

Norwegians keep their private and business life strictly separated. If you are invited a drink after work for or to someone's home for dinner - you are experiencing an honour that should be gratefully accepted. Settle dress code beforehand. Dinner is normally eaten by 5pm– 6pm in the evening. Be punctual. Under no circumstances arrive more than 10 to 15 minutes after the agreed time. Bring flowers, chocolates, your tax-free quota of wine and liquor or a souvenir from your homeland. If the next day is a working day it would be normal to leave by 10pm – 11pm.

Be prepared for the toasting or skaal. The host will start by toasting you, the guest. To respond, raise your glass to mid-chest height, look the host in the eyes, drink, lower the glass to mid-chest height again, look each other in the eyes again and return to normal. Usually only the hostess is expected to initiate a skaal to the female guests. Visitors should start out by toasting the hostess. Say takk (thank you). Later on you should toast the host.

A last piece of advice: During conversations with Norwegians you should be careful with culture-related humour unless it is self-depreciating or gives a blow to Swedes. You will find that Norwegians have a brotherly love-hate relationship with their Swedish neighbours.

May 2005

Expert in global labour mobility issues Nannette Ripmeester is a consultant to the European Commission and the governments of Belgium, Finland, Ireland and the Netherlands. Ripmeester is founder and Managing Director of Expertise in Labour Mobility (www.labourmobility.com).

ELM has published helpful guides on recruitment habits and cultural management issues in over 40 countries including Norway.

Subject: Doing business in Norway, Intercultural skills