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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Nvidia’s earnings will test Wall Street’s confidence in the AI boom.
Chip makers are fighting to assure investors that the artificial-intelligence boom is racing forward. Wall Street might not believe it until Nvidia’s NVDA -0.98%decrease; down pointing triangle Jensen Huang says so.
When Huang steps up to the mic for his company’s earnings call Wednesday, he will have the world’s attention. What he says about Nvidia’s present will preview the future of AI, dictate the path forward for a tech-crazed stock market and influence an American economy increasingly tethered to hopes that the boom won’t go bust.
The $5 trillion chip maker has provided the key building blocks for AI since the launch of ChatGPT in 2022 set off a race for dominance among OpenAI, Anthropic and established Silicon Valley giants. Now, as Nvidia backstops sprawling data-center projects and an exotic money pipeline to boost chip demand, the company’s influence is arguably bigger than ever.
But there are signs of trouble ahead. Political pushback to AI is growing. A bond selloff propelled borrowing costs to their highest levels in years. The hyperscalers that include some of Nvidia’s key customers—once cash-printing machines—are relying more on debt. OpenAI recently told investors its revenue rose by a tepid 18% in the second quarter while its losses deepened.
Nvidia is increasingly stepping in to shore up potential weak points across the market. Earlier this month, the company teamed up with six of Wall Street’s biggest firms on a $500 billion AI-financing plan, pledging to backstop lending to customers that can’t afford its chips otherwise. The chip maker last week also took a stake in Cloverleaf Infrastructure, which arranges power for data centers, and struck a $6 billion deal with startup Poolside aimed at developing a powerful open-weight AI model.
After watching shares in other chip makers and the so-called Magnificent Seven tech companies swing wildly in recent months, Wall Street is hoping Nvidia can beat expectations—again. The countdown is on.
“It’s kind of becoming more and more like the World Cup final than the Super Bowl at this point,” said Brian Mulberry, chief market strategist at Zacks Investment Management. “It’s just gotten to be that big.”
The company has smashed analysts’ earnings estimates for each of the 14 quarters since the AI boom kicked into high gear. Nvidia posted 210% annual growth in net income in its last three-month period, according to FactSet, making Wall Street’s 126% projection look pedestrian.
Expectations for a blowout second quarter have risen rapidly over the course of this year. All Nvidia will have to do to beat this target: outrun 95% annual earnings growth to more than $51.5 billion. Analysts project the chip maker will report record sales of $92 billion for the period, up from a forecast of $78 billion at the start of this year.
In July, big-tech earnings sparked volatility. Concerns about runaway capital spending spread across the sector after Alphabet’s and Tesla’s results, driving a $890 billion wipeout that contributed to the unwind of hedge fund Situational Awareness. Microsoft posted the largest one-day gain in market capitalization by any company, ever, after a quarter proving that it could still show investors the money. SpaceX rocketed higher after a record-breaking initial public offering, only to see $1 trillion in value evaporate.
Surging memory prices and borrowing costs have fueled fears that those and other companies will be unable to keep plowing more money into supplies including Nvidia chips. Shaia Hosseinzadeh, founder of OnyxPoint Global Management, has recently bought dips in AI-infrastructure stocks when Wall Street has strained to absorb massive debt issued by Silicon Valley.
“The macro data is really quite robust,” he said. “Of course, there’s a level at which everything breaks.”
Investors have kept pumping money into the AI trade despite concerns around chip consumers—and to the benefit of chip producers. That is why Nvidia’s outlook for semiconductor demand could send ripples through counterparts such as Micron Technology and Sandisk, developers of the data centers in which their chips reside, and a supply chain of power producers, contractors and other specialists that underpin the globe-spanning AI build-out.
“We joke internally that we’re all Nvidia analysts now,” said David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.
The irony is that investors have tended to sell Nvidia stock immediately after blockbuster earnings, with shares falling each trading session after its four past quarterly reports. Some are betting that will be the case this time around, too.
The options market is pricing in a 5.3% swing, higher or lower, in Nvidia shares during the session following earnings, according to Option Research & Technology Services. That is higher than the 4.8% average move in Nvidia’s stock over the last 12 months after the company reports quarterly results.
In recent days, some of the most actively traded Nvidia options have been put contracts tied to the stock falling from its Friday value of $214.75 to $205 and $210 apiece, according to Cboe Global Markets data. Put options give the right to sell a stock by a set price and typically represent a bearish wager.
Many analysts remain optimistic. Frank Lee, global head of tech hardware and semiconductor research at HSBC Global Investment Research, recently raised his price target for Nvidia shares to $360 from $325, citing, among other things, Nvidia’s strategic partnerships with suppliers and its role as a top contributor to open-source AI.