The Spanish Enigma. A great place to live, a terrible place to work!

Welcome to the latest edition of the Good Enough Newsletter 👋.

This week I want to explore the Spanish enigma. By this I mean the fact that Spain has one of the best lifestyles in the world according to various global surveys but at the same time has a poor reputation for its economy and the associated opportunities to get a job or improve your career.

I have lived in Alicante in Spain for nearly 15 years now. Approximately 50% of my coachees are based in Spain, so they are either native Spanish people or professionals who have relocated to Spain, mainly from Latin America.

A few years ago, I remember teaching in Madrid and speaking to my students about the El Pais (a Spanish newspaper) headline:

Spain: A great place to live, a terrible place to work!

The article explained the benefits of the Spanish lifestyle in terms of climate, culture, food, festivals, and so on, but was also very critical of Spain from a work perspective. It said Spanish employers and management styles, working practices, work/life balance attitudes, remuneration packages, and levels of English language knowledge were inferior to most of their European counterparts.

In fact, in terms of English language learning Eurostat, the European statistical office, said that Spain was regularly “close to the bottom of the ladder” out of 34 countries.

I was wondering have things changed over the last 5 years? 🤔

Or is Spain still very much a country of contradictions?

On this basis I was interested recently to read the Internations Expat Insider 2023 survey, which gives the viewpoint from expats (foreigners) who come to live and work in Spain.

This stated that:

👉 Since the first Expat Insider survey in 2014, Spain has always ranked in the top 10 in the world in the Quality-of-Life Index.

For example, Spain has consistently featured among the best worldwide for its Leisure Options, placing 1st again in 2023. Most expats (88%) are happy with the culture and nightlife in Spain, compared to 68% globally. Additionally, over nine in ten (91%) are happy with their opportunities for recreational sports, compared to 75% globally. Luckily, Spain’s climate and weather (3rd) makes it easier for expats to get out and enjoy these activities.

However:

👉 Spain again performs poorly in the Working Abroad Index (34th out of 53 countries). Less than half the expats (49%) agree that moving here has improved their career prospects, compared to 59% globally, and 36% are unhappy with the local job market, versus 26% globally.

👉 This was dramatically demonstrated in the same survey which placed, Valencia, Spain’s third city, as the best city in the world for lifestyle but the worst (50th out of 50 cities) for career prospects.

This is quite a conundrum!! 🤔

👉 It is interesting to note that less than 10% of expats come to Spain to improve their career prospects. They come for the better quality of life, affordable housing, good healthcare, and intention to retire here.

So, what are we learning? 💡

In summary, the expats seem to be confirming what the Spanish already know.

👉 Spain is a wonderful place to live but no so good for your career prospects, salary package, being self-employed or starting a business, unless maybe it is related to tourism or the hospitality sector.

👉 One of the unfortunate outcomes for the Spanish people themselves is that they are amongst the most exhausted, least productive, and poorly paid in Europe. 😟

👉 It is a fact that they on average get nearly one hour’s less sleep than their European counterparts due to their unusual working practices of long hours and a somewhat traditional culture of “being seen to be working” as opposed to focusing on results and outcomes. Consequently, only one third of Spanish workers are happy with the amount of time they get to spend with their families.

In addition, this means they have less time to improve their skills, learn a language or to play a sport.

This got me thinking why this is and how can we ensure that the renowned Spanish lifestyle can achieve a better alignment with its economy to ensure a more sustainable Spain for all, not just for the wealthy Spanish, expats, and tourists? 🤔

👉 It seems to me that Spain has all the ingredients to be the “Silicon Valley” of Europe with a great climate, affordable housing compared to other parts of Europe and a depth of talent in engineering and the creative and design sectors for example. It can be argued that Barcelona is already a significant European “tech hub” but what about Valencia, Malaga, Alicante – all great cities with so much potential?

👉 I am very encouraged recently to see international service, financial and technology companies opening European hubs and offices in Madrid. Madrid is consistently voted one of the best cities to live in the world by expats, number 5 in this survey, with Barcelona coming in at 14th.  

So, what would you do to encourage a dynamic economy across all of Spain and not just in certain pockets of the country in the North of Spain and essentially Barcelona and Madrid? 🤔

Here are some suggestions from myself and my coachees who have been sharing their thoughts with me in recent business conversation classes:

 👉 Spain should diversify away from its heavy reliance on the tourism sector and invest in high-tech and value-added sectors.

👉 Spain should be bold and encourage a more dynamic economy for start-ups and SMEs and foster an entrepreneurial attitude by giving grants and incentives to potential entrepreneurs.

👉 School and university students should be encouraged to “think outside of the box” and recognise there are many alternatives to the “secure” career or “job for life” working in administration for the public services.

👉 The Spanish national and regional governments should reduce tax and social security rates for “autonomos”, the word for self-employment in Spain.

👉 Incentives should be given to tech start-ups in cities such as Valencia, Malaga and Alicante to invest in technology, talent and training.

👉 Spain should consider changing its time zone to be in alignment with its longitude.

👉 Spain should radically reform its labour laws, employment practices and culture to create a better work/life balance. Companies should be focused on outcomes and results and not “time worked”. Remote and hybrid working should be made more accessible and management should learn to trust their employees.

👉 Management teams and business owners need to improve their communication skills and working practices, which in many cases are still considered somewhat traditional.

👉 English language learning should be given more priority in schools, universities and in businesses if Spain wants to be seen as internationally open for business and not purely focused on the national and LATAM markets.

What do you think? Do you agree with our suggestions?

I would be very keen to hear your thoughts, particularly if you are currently working here or have lived and worked here, or maybe you are considering moving here as an expat or digital nomad?

In your opinion how does Spain compare to other countries for work and lifestyle?

Is Spain improving or being left behind?

How can Spain improve its economy?

Is the current Spanish economy sustainable?

I am looking forward to your comments.

I hope you have found this Newsletter thought provoking!

Until next time!

Wayne