Sweden Has a Caffeinated Secret to Happiness at Work
Workers and bosses alike are trying to figure out ways to reinvigorate work life. Could a cherished Swedish coffee ritual be the answer?
Workers and bosses alike are trying to figure out ways to reinvigorate work life. Could a cherished Swedish coffee ritual be the answer?
Would work be better if we all took a collective coffee break?
Workers in Sweden certainly think so. There, work life has long revolved around fika, a once- or twice-a-day ritual in which colleagues put away phones, laptops and any shoptalk to commune over coffee, pastries or other snacks. Swedish employees and their managers say the cultural tradition helps drive employee well-being, productivity and innovation by clearing the mind and fostering togetherness.
Now, as bosses and workers elsewhere try to reinvigorate office life and flagging job satisfaction, fika fascination is seeping into other workplaces.
The Grand, a New York-based career and leadership coaching platform, summons its all-remote staff of 10 every other Friday for coffee and conversation over Zoom. London-based Hubble, a website for finding flexible workspaces, took up the tradition after being introduced to it by a Swedish staff member.
“Everyone has an excuse to log off and let their hair down,” said Tushar Agarwal, chief executive of Hubble, where staff gather the last Thursday of every month for baked goods, chitchat and, of course, coffee.
A recent product offering—for part-time office space with new contract terms—sprang from a discussion that took place during fika, says chief of staff Charlie Bastier. It’s now one of the fastest-growing revenue streams, he says.
The pressure to make tweaks to the daily ritual is particularly acute in the U.S. Employees continue to report feeling less engaged in their jobs than in pre pandemic times, Gallup data show.
In addition, bonding with colleagues has become harder and less of a priority for many people in the hybrid world of work. Some employers worry the lack of social cohesion is harming company culture and operations.
At The Grand’s regular fika, staffers take turns hosting, leading with casual conversation or a board game such as Code Names or a drawing competition. The Grand’s co-founder Rei Wang says that fika allows her to spend time with her staff, making her a better leader.
“Learning more about their passions and their geniuses helps me understand and collaborate with them,” she says.
Pronounced “fee-kah,” the Swedish culture of breaking for coffee involves much more than a schlep to Starbucks. It’s meant to be a deliberate pause to provide space and time for people to connect. Many Swedish companies build a mandatory fika into the workday, while the Embassy of Sweden in Washington holds one for staff weekly. IKEA, promoting its Upphetta coffee maker on the corporate website, extols the virtues of fika: “When we disconnect for a short period, our productivity increases significantly.”
“Fika is where we talk life, we talk everything but work itself,” said Micael Dahlen, professor of well-being, welfare and happiness at the Stockholm School of Economics. The ritual helps drive trivsel, he says, a term that means a combination of workplace enjoyment and thriving. The concept is so fundamental to Swedish workplaces that many companies in Sweden have trivselcommittees, he said.
Dahlen said he suspects a pandemic-era drop in office fikas contributed to a sharp decline in Swedes’ happiness at work. Just over half of workers in Sweden reported a high level of job satisfaction in 2022, according to Eurostat, compared with 69.5% in 2017.
There’s some evidence that communal coffee breaks help boost productivity. In a study of call-centre workers at Bank of America, researchers at the Massachusetts Institute of Technology found that teams that scheduled 15-minute breaks together were 18% more communicative with one another through the workday than groups with staggered breaks.
Annual turnover, likewise, was 12% among teams that held collective coffee breaks versus 40% among other workers. In all, the teamwork fostered via the breaks led to an estimated $15 million in increased annual productivity, says lead researcher Ben Waber.
“People who are in a tight knit social group have higher levels of trust,” said Waber, who has since founded a behavioural analytics company called Humanyze.
Hubble employees take turns baking and get a stipend of about $20 for supplies for the company’s monthly fikas. Last week, 26 staff members gathered in a communal area away from desks and cubicles.
Kate Mehigan, an account manager, brought in homemade arancini balls and Eliot Dixon, an account team lead, laid out a Basque cheesecake from a recipe he’d found online. Some people played ping pong.
Fleur Sylvester, a Hubble account executive, used the time to quiz a colleague on training advice for running a half-marathon. Sylvester says when she joined the company over a year ago the gatherings were invaluable for helping put faces to names.
“You get an opportunity to speak to other team members that you don’t get to talk to on a day-to-day basis,” Sylvester said. “When you’re online you don’t get the opportunity to have those chats.”
Peter Linder, head of thought leadership in North America for Swedish telecom giant Ericsson, recently introduced the fika concept to Jason Inskeep, senior director at management consulting company Slalom. The two men had initially met on a joint panel discussion, and Linder wanted to congratulate Inskeep on his new job at Slalom. He sent Inskeep a Zoom invite for a 20-minute fika one-on-one.
“I didn’t know what it was,” Inskeep said.
The vibe of the midmorning conversation—which meandered from the future of artificial intelligence to Inskeep’s own feelings navigating a new company culture—was different from the usual business tête-à-têtehe said. Bouncing ideas back and forth in a relaxed way left him feeling energized the rest of the morning.
“It was a mix of coffee shop and barber shop,” he said.
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Investors are bracing for a bumpier fall stock market due to shifting odds of a Federal Reserve interest-rate increase and other macro challenges.
The stock market had a decent summer. Investors are bracing for a bumpier fall.
In the past couple of months, equity investors cheered soaring profits at big companies, shrugged off jitters in the bond market and nudged megacap tech shares back near records.
Now, as the post-Labor Day stretch begins, a number of new challenges lie ahead: ever-shifting odds of an interest-rate increase from the Federal Reserve. Sky-high expectations after a stunning earnings season. The persistent threat of higher consumer prices as fighting in the Middle East drags on.
“You’re moving from this earnings-driven market to this macro-driven market with the Fed, inflation and interest rates in focus,” said Keith Lerner, chief investment adviser for Truist Advisory Services. “It tends to be a choppier period.”
Historically, every major U.S. stock index experiences its worst average return in September. The Dow Jones Industrial Average has slid an average 1.1% in the ninth month of the year, in data that dates back to the 19th century. The S&P 500 has seen the same average decline—and for every September dating back to 1928, the benchmark ends the month lower more than half of the time.
Analysts caution against reading too much into those seasonal patterns. But in recent weeks, new reasons for investor caution have emerged. One of the largest: the looming threat of an interest-rate increase from the Fed, which announces its next policy decision on Sept. 16.
Chairman Kevin Warsh’s decision to ditch forward guidance and take more of his cues from markets has muddied the waters for investors when it comes to monetary policy. That has left traders scouring Fed governor speeches and economic-data reports for clues on the central bank’s next move.
“There’s going to be a lot of eyes on those numbers,” said John Luke Tyner, head of fixed income and portfolio manager at Aptus Capital Advisors.
The past couple of weeks offered just one example of how frequently those expectations can change. After Warsh struck a hawkish tone during remarks on Aug. 28, the odds of a hike at the Fed’s next meeting jumped from 35% before the speech to 58%, according to CME FedWatch data.
On Thursday, Fed governor Christopher Waller made a case for leaving rates where they are. Interest-rate futures showed coin-flip odds between a hike and a hold. Then Friday’s robust jobs report amped up rate-hike bets once more, back to a roughly 60% chance of higher rates after the meeting.
“Rates have really been driving the car for equities the last few weeks,” said Ross Mayfield, an investment strategist at Baird.
That uncertainty comes as an unruly bond market could put pressure on stocks. Treasury yields have marched higher for much of the summer, driven by concerns about rising oil prices, growing U.S. budget deficits and a deluge of tech-company bonds now competing for investors’ cash. Last week, the rout went global, pushing yields to multiyear highs in Japan, Germany and the U.K.
Higher bond yields can drag on stock prices and lift borrowing costs for companies and consumers across the economy.
Rising prices remain the top concern for bond traders, and continued fighting between the U.S. and Iran has done little to ease those worries. The national average price of diesel climbed to a record of $5.850 on Friday, according to AAA. That is up from $3.712 a year ago.
Investors will get more insight on the path of prices this week, with the much-awaited consumer-price index report due Friday and a reading on producer prices Thursday.
With another blockbuster earnings season in the books, some analysts have also warned that any boost from the third-quarter reports due in the coming months could be minimal. Back-to-back quarters of standout profits have raised expectations and made it especially difficult to impress traders. Custom-chip company Broadcom, for example, said Wednesday that it more than tripled its earnings and nearly doubled its revenue. Shares slipped 2.7% the next session.
Many analysts note there are plenty of reasons not to panic. The economy is in impressive shape, thanks to a healthy labor market and the rippling effects of the artificial-intelligence investment boom. Profits are booming at America’s biggest companies. The Cboe Volatility Index has dropped to its lowest levels of 2026. Credit spreads are tight, a sign bond investors aren’t concerned about economic conditions that could hurt companies.
But the mood has shifted from the euphoria that felt tangible when the Nasdaq was notching back-to-back records early this summer. The question, Mayfield said, is whether the fundamentals that have bolstered the bull market so far can stretch the rally into 2027.
“There are more anxieties or uncertainties about the backdrop,” he said. “It does feel like a transitional moment.”