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Austria

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Austria Today

A member of the EU since 1995 and bordered by eight diverse countries, Austria remains remarkably introverted and cohesive even as the population becomes increasingly urbanised.  As a country that has produced renowned artistic and scientific pioneers, Austria is ‘a small state with a rich culture’ and its citizens take extreme pride in their cultural heritage.  Tradition is a strong feature of Austrian life and can be seen in the wearing of national costume (Tracht), preference for speaking native German even in linguistically mixed company and enthusiastic appreciation of Austrian classical music and dining.

Austrian Culture – Key Concepts and Values

Sozialpartnerschaft – ‘Sozialpartnerschaft’ or ‘Social Partnership’ is a system of chambers and associations that supports the dual Austrian values of mutual responsibility with the desire for structure, organisation and hierarchy.  This social partnership, often called the Economic and Social Partnership, is based on co-operation and partnership between employers, employees and the state and strives to reconcile the various interests of each through representative organisations.

Solidarity and Mutual Responsibility – Although rather individualistic, social justice is important in Austria and the country is oriented towards the common welfare.  People who cannot work or who find themselves in distress through no fault of theirs enjoy particular care.  The business culture is also characterised by loyalty and a sense of mutual responsibility between employers and employees.  It is still not uncommon for ex-employers to provide a lump sum for employees who have been laid off.

Gemütlichkeit – The German word ‘Gemütlichkeit’ is often used to explain the Austrian attitude and outlook on life.  ‘Gemütlichkeit’ is not an easily translated term; in essence it describes an appreciation of the finer things in life including food, drink, entertainment and leisure activity.

Doing Business in Austria

Austria has a thriving, diversified market economy with strong service, tourism and highly specialised agricultural sectors, as well as growing foreign trade.  With their skilled labour force and high standard of living, Austria is closely tied to other EU economies, especially to Germany.  It is estimated that nearly half of all domestic jobs are connected to the export industry in some way.  Since joining the EU in 1995 and adopting the Euro, Austria has attracted an increasing amount of foreign investment.  Austria’s superior quality of life, low unemployment and crime and central location in Europe makes it an ideal place for business expansion or relocation.

Part 1 – Working in Austria: Working Practices in Austria

• Austrians place great emphasis on order and efficiency.  Appointments are arranged far in advance and schedules are followed closely.  If you need to cancel or postpone a meeting, contact your Austrian counterpart immediately.
• Punctuality is crucial for establishing strong business relationships in the Austrian business environment.  Your timely arrival at business appointments and social engagements is viewed in the Austrian professional environment as an indicator of your ability to manage responsibilities and attend to details.
• Business practice in Austria is rather conservative, traditional and individualistic; teamwork and consensus-building tend to be less important and meetings follow a rigid agenda and are generally not a forum for sharing personal opinions or ‘brainstorming’.

Structure and hierarchy in Austrian companies

• Hierarchy and status are important elements of Austrian business culture.  Supervisors and company leaders are final decision-makers and generally do not seek out too much consensus or input from lower-ranking employees.

Working Relationships in Austria

• Public physical contact is uncommon in Austria and essentially non-existent in the workplace.  While it is appropriate to shake hands with each person in the room when entering a meeting, do not expect any further physical contact, even a pat on the back.
• Business relationships in Austria are very formal; often old friends or even family members will refer to one another by title and surname in the professional environment.  It is traditional to address Austrian colleagues using all appropriate titles; it is not uncommon, for instance, for a highly qualified Austrian academic or professional to be referred to as Herr Professor Doktor Schmidt (Mr. Professor Doctor Schmidt).

Part 2 – Doing Business in Austria: Business practices in Austria

• Austrian business meetings tend to begin with a few moments of small-talk.  Be prepared to briefly discuss your experience in Austria and demonstrate some knowledge of Austrian culture or history.
• Bring a supply of business cards ideally with one side translated into German, that clearly indicate your rank within the company or organisation and any titles you hold.
• The formality of Austrian business relationships is strengthened by the culture of politeness and courtesy that characterises all aspects of Austrian society.  Although business negotiating skills tend to be frank and unambiguous, Austrians are noted for their ‘charm’, good manners and old-fashioned geniality.

Austrian Business Etiquette (Do’s and Don’ts)

DO make the effort to communicate in German.  Although English is widely spoken especially in the business environment, Austrians prefer to communicate in German and appreciate any effort to learn their language.

DO individually greet and shake hands with each person in the room upon entering and leaving a meeting or professional gathering.  Wait for female counterparts to initiate handshakes.

DO familiarise yourself with the history and cultural traditions that separate Austria from Germany.  Austrians appreciate a demonstrated awareness of the unique features of their country.

DON’T assume that Austrian formality implies rigidity or lack of humour.  In fact, Austrians can be distinguished from their German neighbours by their more easy-going and jovial attitudes.

DON’T speak with your Austrian counterparts about religion, money, their personal life or anti-Semitism and Austria’s role during the second world war.  Austrians tend to be introverted and private and individuals are uncomfortable discussing their private business with those outside of their social or family circle.

Austrian Culture Quiz – True or False

1. In a restaurant, a table displaying a sign that reads ‘Stammtisch’ is unoccupied.

2. In the Austrian business environment, working late and investing overtime hours is viewed as incompetence and inefficiency rather than dedication or professional drive.

3. If you are invited to share a meal in an Austrian home, you should bring an even number of live flowers (not roses or carnations) to present to your hostess.  An odd number of flowers is considered unlucky.

4. You should initiate introductions with others rather than waiting to be introduced by a third party.

5. It is customary to greet everyone you meet with the friendly phrase ‘Grüß Gott’ including strangers in lifts, shops and hallways.

Austrian Culture Quiz – Answers

1. False.  A sign reading ‘Stammtisch’ signifies that the table is permanently reserved for regular customers.

2. True.

3. False.  You should bring an odd number of flowers as an even number is considered unlucky.  You should not bring roses as they symbolise romance or carnations as they are associated with funerals.

4. False.  If the situation permits, you should wait to be formally introduced to others by a third person.

5. True.

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