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?
See Also
Working Hours in Germany | Boundless EORWork-life balanceLanguage, Culture, Customs and EtiquetteGermany, Cultural Etiquette- do's and don't