German Culture 101: The Introduction

I'd often joked with my friends that Germans consider it polite to offer the traditional (Goodbye) term of Tschus or Auf Wiedersehen for their goodbye but they never do much to say "Hello" or smile at anyone.   They are rather stoic in their personal and professional demeanor.  This applies to meeting people on the street or walking down the hall at the office.

When you did meet up with someone that you are familiar with, we as Americans are accustom to saying things such as "How are you?" or "How have you been?"    While in America, we discard this greeting as nothing but a formality with no real expectation to share details.   In Germany, you can expect a different reply. 

When you ask somebody "How are you?", Germans normally use this as a literal question that expects a literal answer, in contrast to the common English usage of "How's it going?" simply meaning "Hi". It might, therefore, be considered strange or superficial to ask the question and keep on moving without waiting for an answer.  In Germany, many people, when asked, will, in fact, give you a very detailed answer, including why they are not doing well at that moment or, why they are doing very well -- which can end up in an even longer answer.    Just be ready and be polite. 

Tax Man Cometh

For those of you with American Passports, you'll have to face the fact that we are one of the few (only?) countries that requires tax filing in the USA while living/working overseas.   The Treasury Dept, in all its wisdom,has continued to push this tax code as a way to stop Americans from hiding income overseas. 

If your company is about to relocate you overseas, be sure to request expatriate tax services as part of your package.  Maybe just ask for an additional $250 per yr toward those fees.   I don't think you'll get any support should you actually owe taxes in the USA for income earned overseas.   I found the big accounting firms have specialists and there are many smaller firms if you spend time to search them out. 

I had friends who said, "Hell with that, I'm not filing US Taxes"  and they did not for several years.  They never recieved letters or notices from the Treasury Dept.   They did hear this rumor that the US Treasury Dept was working closely with the US State Dept.   At some future date, if you decided to update your US Passport at an Embassy, you might denied due to failure to file.  I've never seen this in print but seems doubtful.    We cannot figure out who enters our airports or airplanes from terrorist watch-lists.  How are two seperate US agencies going to collaborate on tax filings?    Can this just be urban myth?   

Shopping German Style

When my wife and I arrived in Germany, we had steep learning curve.  It was the stuff that people never really bother to tell you during the job interview.  As mentioned in previous postings, we arrived in our 2nd floor flat (really 3rd floor as Germans don't give ground floor a number) and tried to settle into by doing the first shopping excusion.   For you 'new' expats you won't appreciate the situation in the old days.  Things are easier for your now.

We had arrived in country on a Friday late-afternoon and searched out for pizza that first night.   After a late dinner, we settled in for the night and put groceries as first on the agenda for Sat  AM.    We woke around 10AM and with some leisure made our way to the shop by 11AM.   When we arrived, we quickly learned the shop was to close at 12:00 as this was a Saturday and Germans value their free time.   I remember rushing through the store trying to figure out brands, locations, and translations.   Things took a while but we made it to register with some time to spare.  

At the register, I proceeded to take out my Visa card.  That was met with some confusion and scorn by the cashier.  Then I pulled out American Express.  Everyone uses American Express.   I got the same look.   I could only yell out to the line behind me, "No Visa, no Amex, what gives?!"   I looked like a fool.   It got worse.  

We scrambled into our pockets and pulled out 20DM and this required the cashier to take items off the register total (which has reached 28DM).   This required a manager, a key, and some additional discussion.  People in the line were in shock when we removed diapers from our total.  

Now, my embarassment had just about reached it peak when we discovered that we needed our own bags to take the groceries home.   As I recall now, my wife carried 11month son home, while I placed all our groceries in his bassinet.   The Germans were probably laughing for days afterwards.  

About 2 years later, the grocery stores extended Sat hours to 2PM.   Furthermore, they all take EuroCheque (EC Card) which works like a debit card.   Tell me if you've experience any of the same? 

Plight of Expat Spouse - Part 2

For the record, my wife was entirely 'gung-ho' about moving overseas.   She had to quit her job, leave her friends, and stay home with kids.   In some part, I'm entirely to blame for my overzelous desire to move overseas.   I had to see the world, improve my career standing, escape the 2 hr daily commute, and test my skills with another culture.  

While you don't see it all clearly then, you need to come to the conclusion it's all about you.   Your spouse was dragged along for the ride.  They don't get to decide time, travel, living conditions, friends.  It has been decided for them by the constraints of the relocation and your job committment.   The spouse has a life where every day has a new challenge.  How to pay the bills, buy groceries in an unfamiliar language, work out directions in a new land, make new friends where there maybe little in common.  

Often, we'd hear stories of military wives who never left the base.  They had friends, movies, schools, stores all within the confines of the base and seldom ventured outside its walls.  I consider that an 'island of America' within a foreign country.  It's home but not real.  Adapting to and adopting with German society is painful. 

At my office, I failed to recognize that my wife required 2 hrs to find the right foods at the store.  She had to learn entire sections in the grocery store.  She had to find substitutes for American products that did not exist in Germany (Baking Soda).  Everyday required some challenge and life was not going to get any easier. 

Give your spouse lots of time to sound-off.   Don't travel extensively during the first 60 days.  Try to get help from others where/when you can.  Be patient. 

Relocation: Time for Negotiation

Many companies embrace and encourage the expat with the idea(s) that an employee gains multiple/new facets of the company, shares his/her ideas with counterparts, and returns ready to share key learnings.   For many multi-national companies, an executive cannot reach the next-level in their careers without an overseas assignment at a subsidiary.   Companies like IBM see it as a mandatory step for rank-and-file executive. 

Unfortunately, my company had no aspirations for cross-pollinating employees and their ideas.  Likewise, there is no defined management track whatsoever so any work overseas was for my own personal and professional desires.    To this day, the company has no defined 'expat package' for moving employees back and forth.   Therefore, I was told I must resign from the one (USA) company and sign new employment contracts with the (EMEA) subsidary.   If you've found out your company has no expat policies, that is a red flag!   Three key learnings surface this stage:

1) When a company has no defined relocation/expat policy, you have greater latitute in negotiation.
2) When a company has no defined relocation/expat policy, you do ALL the research by yourself. 
3) Few other expats exist to provide guidance. Lack of expat policy does not exactly encourage staff to risk their career, family, and financial wellbeing.

While there are several companies that publish the perfect expat package, here is what one should expect as the minimum before accepting an overseas assignment?  

Country of origin:
Guarantee of employment upon return (company did not offer this)
Executive mentor who can support your career/transition back stateside  (company did not offer this)
Cost relief for US Tax returns preparation (company did not offer this)
Cost of Realtor or cost relief associated with lease-buyout (company did not offer this)

Host country:
Cost relief for first year tax preparation fees
Packing and shipment of household items
Foreign language lessons @ min of 40 hrs or 2 week course and spouse @ min 20hrs or 1 week course
English-language school for children (company did not offer this)
Agent to translate/file work permits, driver license requests, bank account, residence permits
Thirty-days paid apartment rental while you find perminent residence. 

You might think Medical is your primary concern but Germany and most EU countries have good socialized health systems.  English-language schools are expected to be the most expensive item.   Expect to pay 15,000+ Euro per student/yr.   If you have children over 5yrs old, you better resolve this item now.   Putting them into the local school system can be beneficial, it could set the back a grade-level once you return to stateside.     When negotiating, also consider your employment status with the firm as either:

1) Still employeed by the US entity and simply 'on loan' to the overseas subsidiary?
2) Resigning from the US entity and considered a 'exempt' employee in the host company? 

There should be no interruption in your time of service/tenture between corporate entities.    

The Decision to Become an Expat

It all started rather simple when I look back on things. The year was 1997 and I'd been working for a $1.1B software company [name intentionally withheld] for just over 2 yrs. The company, while privately held, maintained offices around the world with a European headquarters in Germany.   I was working out of the Chicago sales office. 

I'd had an easy and successful career in sales and enjoyed the company culture and management style. I had enjoyed my commute to downtown Chicago, selling data mining software to the dozen major banks and credit card firms.  I was making a name for myself by sales and securing customer references.   Staff from overseas offices were asking me about how I was selling to my accounts, if their subsid banking operations would buy software, and so forth.   It never really seemed difficult considering the banks were always looking for an edge over the competition.

In March 1998, I had brought home a copy the annual report and left it on the kitchen table.  My wife looked at it and marveled at all the international offices maintained by my employer.  She had the impression we were just a simple US software operation, without much success overseas.   In actuality, the company had 30 offices in Europe. 

She triggered the conversation with the innocent statement, " It would be neat to live overseas for a year or two, huh?!"   That was start of bigger things to come.  I spent next 3 weeks writing a new business proposal for our European managers and pitching them my skills.   In Dec 1998, they were finally ready and able to bring me over to the German office for a meet & greet.   I had 2-3 days of interviews planned, my wife had 2-3 days of shopping and excursions.   We arrived during the famous Heidelberg Weinachtsmarkt.   If you ever want to win over the spouse, visit Germany during Christmas Market.   We had the 'rose-colored classes' firmly affixed to our faces.   

As I recall the events of that 'meet & greet' expedition, on the flight home we made the decision to take the job and relocate.   My wife had a distinctly different view of events.   There were dozens of questions that needed answers.  

In my view, it was now a matter of a currency converter (salary negotiations) and resolving cost-of-living adjustments.   Oh...there was that small matter of my wife having to quit her job, sell our home, dispose of two cars, and transition with a 5 month old son.   

Rule 1.  Get someone/something to win-over the spouse.
Rule 2.  Don't bother with email, contact Europeans by phone.
Rule 3.  Prepare the spouse early/often on planning.
Rule 4.  Nothing happens fast in Europe.