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WORKING IN SWEDEN

INTERVIEW: Does Sweden have a distinct management style?

The Local's Paul O'Mahony interviewed Pernilla Petrelius Karlberg, lecturer at Stockholm School of Economics and researcher at the Center for Responsible Leadership about the Swedish style of leadership.

INTERVIEW: Does Sweden have a distinct management style?
Pernilla Petrelius Karlberg is a researcher and teacher at Stockholm School of Economics. Photo: Private

Does Sweden have a distinctive management style?

The Swedish style of leadership is often said to be characterised by so-called flat hierarchies, where everyone is able to – and expected to – contribute their ideas and input to tasks, regardless of whether they are in a leadership role or not.

Pernilla Petrelius Karlberg told The Local that there are a number of different aspects which can influence management style, although Sweden does have a distinct style.

“I think that there’s definitely an idea that there is a specific Swedish or Scandinavian management style,” she said. “But I think from a research perspective, it’s much more complex, because we tend to generalise or stereotype.”

“It’s got a lot to do with the company culture and the culture of the country,” Karlberg said, “There’s definitely an idea of Scandinavian leadership, I think we have a common idea of what that is, but then, is it actually practiced everywhere in Scandinavia or in Sweden? That’s another issue.”

“In many of our organisations we talk about Scandinavian leadership where the leadership is very international, it’s a mix of different people from different cultures.”

Sweden is a very individualist society, which is also reflected in Swedish business.

“I think the core of what we talk about when we talk about Swedish leadership is the fact that leaders and managers also call on co-workers to take ownership on the task and individualism comes into business,” Karlberg said.

“It’s even expected, and co-workers take that ownership, and they engage and they take responsibility for the outcome and the result. So it’s the total opposite of micro-management in that sense.”

This culture of ownership and engagement also applies to managers, Karlberg explained.

“To generalise, in a Swedish setting, if there’s a meeting with the boss, the co-workers will expect to be listened to, and to be involved in a conversation and give their opinion on things. And that’s also a way to motivate people, in a Swedish sense.”

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Can lead to cultural clashes

This expectation in Swedish workplaces can lead to clashes if employees from other countries are used to a different system, Karlberg said.

“In another culture, say Finland, for example – I’m just generalising – you go to a meeting with your boss and you expect the boss to motivate you and to tell you what to do. So if you had a Finnish manager in a Swedish context, Swedish co-workers would probably feel neglected or frustrated for not being involved. ‘No-one asked my opinion, I want to share my opinion, my opinion matters'”.

This can also happen in situations where a Swedish manager is managing a group of employees from a different culture or country.

“A Finnish crowd with a Swedish manager might be very frustrated if the manager just asks questions and doesn’t seem to have a direction of their own. There’s just different expectations”.

However, there is also a collective aspect to Swedish workplaces, which foreigners working in the country often pick up on.

“When I work with international crowds, they tend to notice that Swedish co-workers and managers are very collective, they want to have consensus, they have to discuss everything, and it takes forever and it can be very frustrating.”

Swedish co-workers aren’t afraid to speak up though, if they feel that the decision their manager is making is wrong.

“But there are a lot of behaviours where Swedish co-workers will not accept a decision. For example, if they feel that the idea that their manager is bringing is wrong, it will actually be their duty to speak up, not in a confrontational way, but to say ‘Hmm, you know, this idea about doing it this way, it’s probably not a good idea.'”

“And non-Swedish managers might not always appreciate that kind of reaction. And if it continues, and the manager says that this is the way we’re gonna do it, the typical Swedish coworker will insist that this is the best way, and then there is a clash – again, they expect to be listened to and taken into consideration.”

How do you know when a decision has been taken in a Swedish workplace?

This need to feel informed and included in decision-making can in some cases make it difficult to understand at exactly what point a decision has been taken in a Swedish workplace.

“It’s a different process,” Karlberg said. “It often involves a calculated plan for taking the time to introduce the decision, discuss it, and make people feel that they have been informed.”

This aspect of the Swedish workplace culture caused issues during the pandemic, when many employees began to work from home.

“Decisions are taken in a much more informal way, and it can be difficult to pinpoint exactly when something was decided. And we also saw that during the pandemic, that the typical Swedish organisation – which is very non-hierarchical – suffered a lot, because a lot of leadership is practiced in an informal work environment.”

“So when people were taken away from that environment – because suddenly they were working from home – it was sort of, you know, ‘how do we practice leadership now?’, whereas in an organisation with a much clearer hierarchy, it was never an issue where decisions were made or how leadership was practiced, because it was done in a different way.”

“And in the more informal, flatter organisations, we had to find a different way to do that, to translate into the virtual room.”

Despite this, Karlberg does believe that Sweden’s leadership style is effective.

“I would say that it is, yes. We stand out pretty well as a nation when it comes to different types of national measurements of competitiveness. We score quite high on that. Of course, there’s also a drawback, if people don’t want to take that responsibility and ownership, because then it’s not typical that the manager would step up and change the leadership style. So it depends on whether you actually share the same expectation.”

Where does the Swedish leadership style come from?

Sweden’s collaborative leadership style is perhaps a product of Sweden’s history, Karlberg said.

“We have always been a small country, very dependent on export. And that means that we had to adapt to the rest of the world and to other markets, but also having to collaborate – we’re too small to quarrel or fight.”

“This has been a way to bring people together in the same direction – it’s a little bit like how we work with the unions with much more of a collaborative focus instead of being confrontative, because it’s simply not rational for a small country like us.”

There’s also a strong tradition of independence in Sweden, Karlberg explained.

“There’s a genuine tradition of independence in the sense of mutual respect. And of course, a lot happened during the 20th century with the development of equality and the whole idea of individualist thinking. Where we’re individualistic with regard to family, with regard to gender, with regard to our roles in society.”

“I think that plays a part as well, with equality and also that everyone matters in that sense.”

You can hear Paul O’Mahony’s interview with Karlberg in our Sweden in Focus podcast where we discuss all aspects of life in Sweden and shed light on the latest Swedish news. Listen and subscribe.

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WORK PERMITS

Business leaders: Work permit threshold ‘has no place in Swedish labour model’

Sweden's main business group has attacked a proposal to exempt some jobs from a new minimum salary for work permits, saying it is "unacceptable" political interference in the labour model and risks seriously affecting national competitiveness.

Business leaders: Work permit threshold 'has no place in Swedish labour model'

The Confederation of Swedish Enterprise said in its response to the government’s consultation, submitted on Thursday afternoon, that it not only opposed the proposal to raise the minimum salary for a work permit to Sweden’s median salary (currently 34,200 kronor a month), but also opposed plans to exempt some professions from the higher threshold. 

“To place barriers in the way of talent recruitment by bringing in a highly political salary threshold in combination with labour market testing is going to worsen the conditions for Swedish enterprise in both the short and the long term, and risks leading to increased fraud and abuse,” the employer’s group said.   

The group, which represents businesses across most of Sweden’s industries, has been critical of the plans to further raise the salary threshold for work permits from the start, with the organisation’s deputy director general, Karin Johansson, telling The Local this week that more than half of those affected by the higher threshold would be skilled graduate recruits Swedish businesses sorely need.   

But the fact that it has not only rejected the higher salary threshold, but also the proposed system of exemptions, will nonetheless come as a blow to Sweden’s government, and particular the Moderate Party led by Prime Minister Ulf Kristersson, which has long claimed to be the party of business. 

The confederation complained that the model proposed in the conclusions of the government inquiry published in February would give the government and political parties a powerful new role in setting salary conditions, undermining the country’s treasured system of collective bargaining. 

The proposal for the higher salary threshold, was, the confederation argued, “wrong in principle” and did “not belong in the Swedish labour market”. 

“That the state should decide on the minimum salary for certain foreign employees is an unacceptable interference in the Swedish collective bargaining model, where the parties [unions and employers] weigh up various needs and interested in negotiations,” it wrote. 

In addition, the confederation argued that the proposed system where the Sweden Public Employment Service and the Migration Agency draw up a list of exempted jobs, which would then be vetted by the government, signified the return of the old system of labour market testing which was abolished in 2008.

“The government agency-based labour market testing was scrapped because of it ineffectiveness, and because it was unreasonable that government agencies were given influence over company recruitment,” the confederation wrote. 

“The system meant long handling times, arbitrariness, uncertainty for employers and employees, as well as an indirect union veto,” it added. “Nothing suggests it will work better this time.” 

For a start, it said, the Public Employment Service’s list of professions was inexact and outdated, with only 179 professions listed, compared to 430 monitored by Statistics Sweden. This was particularly the case for new skilled roles within industries like battery manufacturing. 

“New professions or smaller professions are not caught up by the classification system, which among other things is going to make it harder to recruit in sectors which are important for the green industrial transition,” the confederation warned. 

Rather than implement the proposals outlined in the inquiry’s conclusions, it concluded, the government should instead begin work on a new national strategy for international recruitment. 

“Sweden instead needs a national strategy aimed at creating better conditions for Swedish businesses to be able to attract, recruit and retain international competence.”

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