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The opportunities and challenges of DE&I leadership in Denmark

October 2023

The friendliness that Danes are famous for does not always extend to helping integrate recently relocated business leaders. We examine what needs to be done to offer a warmer welcome to international executives and their families.

“You live in Denmark? It’s one of the happiest places in the world!”

It’s a phrase we hear often. And of course, there is a lot to love about living somewhere which consistently tops global charts for liveability, happiness and sustainability — not to mention economic and digital competitiveness. Such scores have long been analysed — particularly by envious onlookers from overseas — but much is rooted in ‘trust’ being an essential value of Danish culture.

The country’s economic model, and that of its Nordic neighbours, is one where government, business and people need to trust each other to do what’s best. This helps ensure that happiness in Denmark is not just a concept, but a way of life. The unique lifestyle is also known as ‘hygge’, and is based on appreciating small moments in life, always in the present moment.

But what if you’re a business leader who has relocated to Copenhagen, for example? The promise of new professional opportunities and this high quality of life is understandably enticing, but their lived experience can prove somewhat different, at least in the early stages.

They are likely to find a society which, contrary to outside expectations, has its fair share of idiosyncrasies — particularly when it comes to fully embracing the values and cultures of newcomers. The openness and friendliness that Danes are (rightly) famous for does not always extend to curiosity about the differences that new arrivals bring with them.

It’s something of a contradiction, one that is admittedly laced with nuance and shaped by individual circumstance. So, why is this? And what does this mean for HR leaders seeking to accelerate the diversity, equity and inclusion (DE&I) agenda across their organisations? What are the implications for talent relocation, succession planning in global Danish firms, and inclusive talent development?

After all, the opportunity is immense — the Danish economy continues to grow, led by innovation in professional services and energy transition, as well as the performance of its pharmaceutical and medical technology sectors.

Some studies indicate that foreign nationals account for over 75% of the growth of the employment sector and have played a huge role in the country’s GDP growth, coming in at about 40% of the increase. Today, nine of the CEOs heading up the companies which form Denmark’s C25 Index are non-Danish — most not internally promoted but externally recruited. The Spencer Stuart 2023 Nordic Board Index, out soon, is also expected to show that Denmark has the highest share of foreign directors in the Nordics with 56% non-nationals, up from 51% in the previous edition of the Index.

But while Danish companies have identified the need for international executives, they have not always demonstrated a strong track record of integrating them, nor are they internally promoted to form a pipeline of international talent.

Moving stories

Living and working abroad can be fulfilling and exciting, challenging and enriching. And for professionals, the opportunity to live away from home can turbo-charge their career onto new heights. Yet it can also be hugely daunting.

Much depends on their ability to quickly integrate with their new colleagues and neighbours to quell the gnawing pain of homesickness. Accomplishing this in Denmark, however, is not always straightforward.

Any business leader moving there will doubtless expect some period of adjustment. Although the country’s embrace of all things digital means that residency paperwork is a thing of the past, from learning the language to successfully navigating the local cycle network, there is still a lot to get on with. Tackling such priorities is unavoidable — no one can move somewhere new and expect a totally seamless transition from their previous life.

And yet it’s also fair to say they might not anticipate the task of making new friends and forming new relationships to be quite such an uphill struggle. Of course there are notable exceptions, but Danes are not always the most social of nationalities, particularly when it comes to foreigners who don’t speak the native language.

While new arrivals are fuelled by curiosity about the Danish way of life, it is not always reciprocated. Danes often tend to stick together, liking and sometimes preferring to be with other Danes or those they already know. Politeness and a willingness to help is one thing, but welcoming newcomers and their loved ones into their home for a drink or meal is something else entirely.

Of course, no one is obliged to open their door to a stranger, but this perceived reluctance to reach out, to ask about their lives and backgrounds, can make it harder for newcomers — even those who lead highly successful professional lives — to quickly assimilate into their new surroundings.

Unfortunately, when people are unhappy and isolated at home, it impacts their productivity and effectiveness in their workplace too. But that’s where the HR leader can help, particularly when there is an effective set of DE&I policies in place to assist.

Shaping inclusion in Denmark

Helping international leaders and employees settle in is just one of the many ricocheting tasks facing HR leaders in Denmark. Regardless of the size of their organisation or sector, theirs is a role that blends empathy with ethics, innovation with insight. It’s a task replete with challenges large and small, including prioritising DE&I — which is not always straightforward or immediately rewarding.

Interestingly, at Spencer Stuart we have found that when business leaders understand DE&I as a mentality and a mindset that permeates all aspects of business, rather than be a one-off programme or HR initiative, real change can happen. HR leaders who have worked in organisations that wanted a quick fix have left their roles, often disillusioned (chief diversity officers, in particular, have a notoriously short tenure, due to many expectations and too few resources).

However, there remains real potential here. HR leaders who have felt support from their CEO and buoyed by the opportunity to enact real change in culture and business practices, have focused on using leadership values to anchor the change the organisation wants to see.

After all, values apply to everyone across the organisation, up to and including the CEO. Values are far more than a mere buzzword. When applied correctly and linked to behaviours and accountability frameworks, their effective deployment can start to change cultures, and help ensure that those who are different in any way can feel included, heard and supported.

A huge amount also hinges on the tone set from the top. It is incumbent on the CEO to lead by example. They must always seek to listen and trust, provide feedback and show genuine curiosity about differences. It’s through this approach they can drive inclusive and high performing teams, made of diverse individuals across any demographic.

And yet it’s not down to the CEO alone. Yes, Danes have traditionally preferred the allure of homogenous teams but such habits are not set in stone. We can all do more to open our minds to the opportunity of working alongside people from different backgrounds, cultures and countries. When we are curious about and open to differences, myriad benefits — both personal and organisational — will surely follow.

But really, this type of business case for inclusion shouldn’t be necessary. Yes, you can spend lots of time trying to measure the specific impact of inclusion on each team’s performance — but why do we need a business case to treat others nicely?