Why Germans have higher productivity and longer vacations
openforum.com
openforum.com
I tend to take a lot of time off, and one thing I notice when I come back from a trip is how much more productive I feel. It's like there's all this pent-up brainpower waiting to get out, and none of whatever baggage was clogging it up before I left to get in the way.
I used to work 3 month contracts at this one shop, with 6 to 9 month breaks in the middle. I actually alienated some of the developers there because I'd show up and be 10X - 50X as productive as the next guy (measurable in things delivered), mainly because I was so stoked to be back writing code. I know that if I'd stayed there an entire year at a stretch, my throughput would have come down to a similar level as the rest of the team. But because of the way I worked, they'd get 3 months of fast, and then I'd be out the door.
I notice the same thing with my own projects when I'm travelling. If I dip out of internet coverage for a week or so and then get a day to run, it's amazing to see how much I get done in that day. I imagine that you could get similar results at a regular company by taking 3 or 4 short breaks over the course of the year.
I know little of Germany's regulations w.r.t. employment. Are labor costs (due to not only wages but taxes paid by the employer and other non-wage burdens) higher? Do employers in Germany rationally select higher levels of automation? Could this explain the disparity between countries in such a metric?
Something odd is that gas stations over here are called "service stations", and we get our cars filled (no filling it yourself), oil checked and other niceties - it's so disconcerting for me going to an European gas station (went to one in Vienna).
Wikipedia once again surprised me with the depth of the article on Filling Stations:
http://en.wikipedia.org/wiki/Filling_station
I guess I'd only experienced full service stations before going to Europe.
Also, the article is a bit off on some of its numbers -- 6 weeks of vacation aren't required by law, 24 days are (i.e. just under 5 weeks), though 6 is a common perk.
Additionally, at least in the software industry, I've commonly seen people reporting fewer hours than they actually work because by law overtime must be compensated by money or vacation, which is often an annoyance for the employer and employee (i.e. you're working late to get something done, by choice, and your boss is annoyed because now they're supposed to give you vacation time for that), so I got in the habit of always just reporting 40 hours.
In general I'd take this article with a grain of salt; it's not that it's mostly wrong, but it's clearly written in fandom, rather than a quest-for-understanding sort of way.
It's true that you'd still see a huge salary disparity even if you compare SV to Hamburg, Munich or Frankfurt, but comparing to Berlin is still a bit disingenuous.
Also, I believe SV (especially for tech workers) is the outlier here - there is no other place in the world where developers are so highly payed, and the highest average wage earners among professionals in Germany are not people in the software industry like in SV (they are probably the people working in finance & banking in Frankfurt).
You can't talk about salaries in other cities without considering the cost-of-living differences.
That said, I know programmers in Vienna making what I would consider pretty good salaries (60-70K/euros), even in the US. With 5-6 weeks of vacation.
I haven't been through so many factories to compare, but the investments in technology I saw seem higher than in the American factories I've been through. Small sample size, though, basically anecdotal, so take me with a grain of salt here.
He was of the opinion that German productivity, at least when compared with other European countries, was a myth. He told exactly the same anecdotes about German individuality as this article mentions, but gave it quite a negative spin.
When handing out bits of work to fellow engineers, the Germans would tend to put their heads down and start work immediately, instead of consulting with colleagues about previous solutions to the same problem, etc. Basically he said they did quite a lot of very efficient, very correct, very over-engineered re-inventing of the wheel.
Particularly he pointed out that to a German engineer, every part of the solution was equally important, where as to an English engineer, it was obvious some parts where more important than others. Focusing on those gave a better quality end-result when faced with a limited budget, but a German with a unlimited budget would give you an absolutely fantastic end-result.
So this sounds like a long established engineering culture.
Of course, they did decide to start their company here in the U.S., so they may appreciate some things about the U.S. style of doing business.
It subsequently lost that lead to Germany - I don't have the link to hand, but one possible reason was the lax copyright laws in the German states allowed easier re-publication of technical manuals.
More recently British engineering ability has criminally been allowed to wither on the vine, but that's another story.
And when you think of quality "German engineering" tends to get a stamp of approval. It implies that no detail was overlooked or under resourced. It probably doesn't mean much when buying a cheap toy, but if you are spending 40-80k on a car it is reassuring.
Is it just me, or does the claim about over/understating work hours run exactly contrary to the subsequent claim? (To be explicit: Germans understate their hours ⇒ they work more hours than they say ⇒ statistics showing Germans with higher productivity are exaggerated. And similarly Americans understate hours ⇒ they work less than claimed ⇒ they are more productive than statistics would suggest.)
A German makes 10 widgets in 5 hours and bills 4 hours. The German achieves 2.5 widgets per billed hour.
An American makes 10 widgets in 5 hours and bills 6 hours. The American achieves 1.67 widgets per billed hour.
"Look at their productivity rates. They’re like ours. I think we understate our hours and they overstate them, because they take so much time off and sneak off early from work. If the productivity rates being reported are officially the same, and if they’re understating and we’re overstating, they’re probably working more efficiently than we are, and maybe the fact that they’re taking time off has something to do with that."
Sounds like Geohegan himself made a mistake in the second sentence, which could have led to the confusion.
I [3] am completely willing to accept possible adverse effects of mandated vacations on productivity as long as they are not too drastic [4]. I don’t view vacations as a means of improving productivity. (They might well be but the evidence I know of doesn’t do a good job of convincing me either way.)
[1] The law mandates 20 days if you work five days a week so it’s actually four weeks, not six.
[2] Funny enough, Germany doesn’t actually have a minimum wage.
[3] Just so you are not confused, I’m German.
[4] Germans are extremely wealthy so I’m not exactly concerned.
... and fond of footnotes.
As a comparison, the American company I work for (in Canada) provides a default of two weeks vacation with two weeks PEL (Personal Emergency Leave) that can be used for doctors' appointments, etc. That's twenty days, although only ten of them can be used for vacations.
I realize that not every company in America provides sick days, but that's IMO a different issue.
As an American I've encountered far too many Americans coming into work with just "a little cold" and getting the rest of the office sick. Dragging everyone else down with them because they can't afford to take time off to see a doctor and get medicated.
But I think the 80/20 split is still in effect for anything longer than a few weeks.
That is not true. The employer pays the salary for six weeks of sickness. After that, the health insurance provider takes over. I believe that the american sick-day-model could never work here because of unions and other employee-interest organizations. So it is not really up to the company, they have to pay you your salary and cannot take vacation time away from you because of sickness. However, ongoing sickness can be a reason to fire an employee.
Are you sure about that?
Ongoing sickness is an acceptable reason to fire an employee (with similar "very strict requirements") also here.
He wasn't sure why I was laughing.
That's the minimum, most people I know have 28-30 days. On top of that you can get up to 5 days of paid educational leave.
The article as a whole is quite superficial, imho.
Not sure if those working in big companies like Deutsche Telekom or Daimler would agree to the claim that Germans don't have many meetings, for example... ;)
Anyway, not trolling, just thought relevant.
I knew a few people who worked on Wall St and they seemed to socialize with their co-workers too but I also knew one chick in publishing who had a similar experience to you.
Conversely I now live in Edinburgh and my team only goes out for drinks once in a blue moon. Of course much of it depends on personal circumstances such as if you're young and single or have a family with small children.
So, um I guess YMMV.
Additionally, this article rings true for my experience both living in Germany & working with Germans in the US (especially here); They bust ass & are amazingly productive.
Of course, it's also the reason US companies are so eager to outsource programming jobs.
"Max Klein" sent me an e-mail essentially inviting me to 'take it outside', I am amused.
But that's orthogonal to my point. You could mandate 6 weeks vacation in the US, too. But wages would go down as a result.
Generally, if you're in our profession and you want more vacation, become a contractor. People have been doing contract work for decades for exactly this reason.
If Americans worked less, it's likely that the amount of goods and services produced would also go down. In that case, prices would remain the same, and we would all just have less stuff.
Housing appears to cost about as much as a major US metro area.
Where did you get your information? Have you tried comparing the rent of a reasonably central apartment in Frankfurt & Munich (Germany's wealthiest and most expensive cities) with their New York and San Fransisco equivalents?Housing in major cities in Germany is drastically cheaper than in the US.
The average cost of a newly built detached house in Germany in 2008 was $320,540USD. The average cost of same in the United States in 2008 was $292,600[1].
Yes, I did compare, but not aggressively. What's your source?
[1] Bulwien Gesa via "Global Property Guide", and the US Government, respectively.
And there are also much cheaper cities in Germany, I was comparing the most expensive in both countries since you talked about major US metro areas.
Pretty sure that even if you go down the ladder and compare Seattle/Miami/San Diego to Hamburg/Berlin/Cologne or whatever their German counterparts are German housing is still cheaper.
EDIT: I see you changed your comment while I was replying. You're right that if you compare suburban housing (detached houses) the US is cheaper. But if we are talking about metropolitan housing it's a different story. Also, relatively few people live in detached houses in Germany - these do not represent the average household like they do in the US.
I don't think we are at a disagreement, because I don't think we are comparing the same thing. I am talking about metropolitan life (apartment, central location in a big city) while you are talking about housing in general (which in the US mostly comprises houses in suburbs).
Honestly, it's not that hard to actually gather the statistics and muster an argument based on evidence. Every major metro area tracks these numbers.
Having just replied to another comment with 4 minutes of Google research to establish the rough parity between the cost of the Berlin rental market with that of Chicago, the third largest city in the US, I'm comfortable supposing right back at you that you're wrong, and that housing in Germany simply isn't significantly cheaper than it is in the US, despite the fact that it is the single largest component of the typical cost of living and the fact that on average Germans earn less than Americans.
And, sorry, no, I'm talking about major metro, not suburbs.
And, sorry, no, I'm talking about
major metro, not suburbs.
The average cost of a newly built
**detached house** in Germany
There are practically no detached houses in major metros in Germany, except in the very outskirts of the city & suburbs.The few exceptions to that rule are extremely expensive. This is why the comparison is not 100% apt - detached houses are a common form of housing major US cities but very uncommon in major German cities.
You do live in disposable houses. Have you seen how a house in the US is built? The walls are made of what are called 2"x4"s [1], spaced 1.5' apart. If you've ever been to Lowes or one of those kinds of places and seen insulation you'll see why. Insulation comes in big rolls 1.5' wide. Once the insulation is in sheetrock is put on the inside and blackboard on the outside. If the home is a brick it will then have bricks laid in front of the blackboard with a strip of plastic in between because of the moisture, otherwise they just put siding on.
And that's it. When I explain this to people in Europe the reaction is always the same. First they look at me like they don't believe me, then they exclaim "so that's why they always fall over in high winds". There is a story over here about a German who build a German-style home on the east coast. When the inevitable hurricane came the only damage his home suffered was from the debris of the cheap American homes that fell apart hitting his house.
[1] It's actually 1.5"x3.5". I believe they are counting the eventual siding as part of the size.
I used to have a house built in the late 60's, in Bloomington IN. By no means was it atypical. It was a ranch on a slab, 2x4 stud construction, drywall inside, and Godawful cheap paperboard siding. The windows were aluminum frames and had what I can only assume was a negative R value.
In Europe, people just don't build that way. Well, out in the boondocks, people might build a shack like that - but not in actual cities. Certainly not in a city the size of Bloomington. It's not a stereotype that Americans live in disposable houses, you see: it's just reality.
Most of our workforce - including everybody who did plaster - was gone for several years. Then they all came back and had the GI Bill to buy cheap houses. The market spoke, and we're left with a lot of people who know how to build cheap houses.
Now, my house is built of three layers of brick, made right here in town in a factory long gone. Its interior walls are 2x4 studs that actually measure two inches by four inches, and are roughly the consistency of iron after their 130-year drying period. (They still smell nice when drilled for wiring, though - imagine that!) There is half an inch of real plaster on that. You cannot harm this house.
I should tell you, though, that drywall is gaining popularity in Europe as well. It's just so cheap and quick, you see.
What part of Europe? In the parts of Europe I'm familiar with people seem smarter about real savings. For example if you build a pile-of-sticks US style house, yes it will initially cost very little. But maintenance, heating, cooling, etc., etc. will cost a great deal more for the whole time you have the house. Perhaps if utility costs were so incredibly cheap like they are in the US people wouldn't think about it as much.
I'm not saying I've ever seen a studs-and-drywall approach in Europe, no. In Hungary things tend to just be concrete or block or brick construction, and wood is used for looks. This is partly because wood is really expensive in Europe, since the Phoenicians cut down their forests, mostly. We've got Canada.
I wouldn't be surprised to see a light steel interior frame wall with drywall and plaster on it, though.
That's not really answering your question, but for a gigantor metropolis berlin is a lot cheaper than manhattan...
The purpose of earning money is to enable you to live the lifestyle of your choice, that's axiomatic. If you can get everything you want for less money, are you more or less wealthy than someone who can't get what they want, for more?
Also, productivity is not linear with time. 30 hours of actual work beats 50 if half of those 50 is meetings and goofing off. That's the German and French secret, if any.
From the article: "In 2008 it was estimated that three vacation days were left unused for most American workers."
Since the average American doesn't use all the vacation he has, the answer is probably no.
"Standard of living" rankings tend to measure how much of the stuff that the study creators want that you can afford to have. A nation might have a low rank due simply to the fact that the people living there prefer different things than what the study creators think they should prefer. Measuring PPP-adjusted money doesn't have this problem.
Quality of life is higher no matter what you earn. Germany is set up so you can enjoy your days and your life.
In the city, yes. In the suburbs most people consider a car a necessity to get to work.
Here in Indiana, without a car you don't work. Or buy groceries. Period. You are at the mercy of your friends who do have cars, and it's a real burden for the poor.
I like life in Germany but it all seems like flavour-of-the-month journalism.
You have a redundant adjective there.
I don't want to over-simplify. The US has a higher population and thus doesn't need to export as much. But actually manufacturing something ain't that bad. Didn't someone complain recently that even Silicon Valley is doing that less and less?
And while France was behind Germany, they do even fewer hours.
Whether that matters a lot is a different matter altogether. Life-work balance is one issue, job satisfaction another. Working more hours vs. wanting to work more hours etc.
And in my experience, the IT industry is a bit different anyway, never mind the entrepreneurial sector thereof. So does this matter a lot to the usual HackerNews reader? Probably not.
http://en.wikipedia.org/wiki/File:OECD_Productivity_levels_2...
Or MUCH lower according to this table http://www.nationmaster.com/graph/eco_ove_pro_ppp-economy-ov...
The graph is just a rephrased GDP per capita. For a small nation with massive oil sector you have a huge distortion of metric it supposed to illustrate.
http://news.ycombinator.com/item?id=1635385
has been around here lately quite a lot ...
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomin...
USA GDP - 14.2 T Germany GDP - 3.3 T
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP...
difference only 26%... guess you should move to Qatar or Luxembourg though -- but when you're not rich from oil or moving large sums of bank money around, that high GDP is not actually helping, is it?
And then there is stuff like http://en.wikipedia.org/wiki/Quality-of-life_index.
Wow, that article looks pretty bogus. Here are their factors:
2. Family life: Divorce rate. My parents are divorced and they both seem pretty happy. This metric seems very biased and not clearly beneficial. Is it better to keep an unhappy marriage together or to create two new happier marriages?
3. Community life: country has either high rate of church attendance or trade-union membership. Seriously? Apparently freelancing atheists are miserable.
6. Climate and geography: Latitude, to distinguish between warmer and colder climates. It's ridiculous to claim that latitude is a prime determiner of quality-of-life. Some people prefer tropical beaches, but others love changing seasons and still others like ice fishing. As far as climate and geography are concerned, would you rather live in a Saharan desert or Crete? Places with similar latitudes can have vastly different climates, anyways.
7. Job security: Unemployment rate. Fair enough, but low unemployment rate isn't necessarily an indicator of job security: there could still be high churn. Also, a nation that provides a sufficient level of services means that the unemployed are never too badly off, while a country that provides none could see its few unemployed living in misery. Serious question: would a country with single-worker households have an unemployment rate near 50%?
9. Gender equality: Measured using ratio of average male and female earnings. Terrible. Does this even factor in number of hours worked? It certainly doesn't account for differences in the work being performed or for cultural differences.
By my count, about half of those metrics are crap. Creating an index from that is basically hokum. Anyone could tweak the metrics to almost arbitrarily reorder the rankings.
This is still a useful metric, cultural reasons or not. Half of the world's population are women.
"Gender equality" the way they measure it here seems to be saying that men and women should ideally live the same. Freedom of choice and equal rights is what matters, and I don't feel that this metric even comes close to measuring that.
As for Quality of Life, that's fine, but I love America and I love our lifestyle, so perhaps that's more of a personal choice than an aggregated one.