In a recent statement, Nicolai Tangen, the Norwegian CEO of Norges Bank Investment Management, remarked on his percenptions on the difference in ambition levels between Europeans and Americans, suggesting that;
“Americans just work harder.”
It sounded more like the product of ‘group think’ rather than a well-considered hypothesis, but it garnered a lot of attention, including mine. So, let’s take a look at whether working ‘harder’ equates to more ambition, and ultimately greater success.
The meaning of ambition:
Ambition: a strong desire to do or achieve something.
It can be understood and expressed in different ways across cultures, including how it is pursued, valued, and what it means to individuals and society.
A comparative look: Norway vs. USA
To understand this issue better, let’s compare the work cultures and societal cultures and structures of Norway and the United States to asses the role they might be playing.
Perspectives on ambition
Comparing ambition between Norway and the USA reveals significant differences rooted in cultural, social, and economic factors.
Norway’s culture emphasizes collectivism, egalitarianism, and work-life balance. Many also live a life with Janteloven, a cultural concept which discourages standing out or being overly ambitious. It promotes the idea that no one is inherently better than others and fosters modesty and equality.
In contrast, the American culture leans into individualism, meritocracy, competition, and the self-made ideal, illustrated through the concept of “The American-Dream”.
On the surface you could argue that the American culture gives rise to greater ambition, but only if you judge ambition purely through the lens of work and financial suuccess. One must ask if it is any less ambitious to simply be content, to create collective success, or to achieve the seemingly-illusive work-life balance.
Working hours and productivity
According to the OECD, the average Norwegian works around 1,368 hours per year, while the average American works approximately 1,791 hours per year. This represents an additional 53 working days, or 1.76.
Despite this, Norway consistently ranks high in terms of productivity. In fact, Norway’s GDP per hour worked is among the highest in the world. This indicates that longer hours do not necessarily translate to higher productivity or greater ambition.
Employee rights and welfare
In Norway, employees benefit from comprehensive rights, including substantial parental leave (49 weeks at full pay or 59 weeks at 80% pay), and a minimum of 25 vacation days per year. These policies contribute to higher job satisfaction and work-life balance. In the U.S., by comparison, federal law does not guarantee paid parental leave, and the average worker gets only about 10 paid vacation days per year. These disparities highlight the protective nature of European labour laws that foster a healthier, more motivated workforce.
Social security and wellbeing
Norway’s extensive social security system ensures that citizens have access to healthcare, education, and unemployment benefits, reducing the stress and anxiety that can detract from personal and professional ambition. The U.S. system, while robust in certain areas, often leaves individuals vulnerable, with many Americans lacking adequate healthcare, which is often tied to their job, or facing substantial student debt. This insecurity can drive a work culture fuelled more by fear of falling behind rather than by genuine ambition.
The downstream costs of America’s work culture
The American work culture, characterized by long hours and intense pressure, has significant downstream costs. These include high healthcare costs, reduced productivity, and a less engaged workforce. Businesses bear the burden of these costs through higher healthcare premiums, lower employee retention rates, and diminished overall performance.
According to the American Institute of Stress, workplace stress costs the U.S. economy over $300 billion annually. Moreover, societal costs such as increased mental health issues, family breakdowns, and community disengagement also take a toll.
Mr Tangen argues that American ambition is what will enable the US economy to grow. Yet, all the evidence indicates that the current approach is unlikely to optimise the full potential growth available, and in this regard the US is more likely to be an underachiever.
The Norwegian model aligns better with the emerging body of science around human-sustainability.
A call for thoughtful leadership
It’s crucial to recognize that ambition is not merely about working harder or longer but about working smarter and by taking a research not assumptions-driven approach to culture and work design. The former leaves profit, competitive advantage, and thriving on the table.
Promoting an unhealthy approach to work is outdated, torpid, and arguably even reckless when there is a wealth of evidence now available to support a more balanced approach with greater outcomes all-round. The question therefore is that knowing what we do now about what drive human-performance for the long-term, why would we be settle for anything less than this? Maybe, it’s because we aren’t ambitious enough? Or maybe, it isn’t about ambition at all.