Hungarian business culture guide - Learn about Hungary

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businessculture.org Content Hungary

http://businessculture.org/eastern-europe/hungary/

Last updated: 02.10.2013

businessculture.org

Business Culture

in Hungary

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This project has been funded with support from the European Commission. This publication reflects the view only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

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TABLE OF CONTENTS

Business Culture in Hungary ..................................................................................................... 4

Xenophobia: being a foreigner in HUNGARY ................................................................................... 5

International business in HUNGARY ................................................................................................. 5

General education ................................................................................................................................ 6

Educational standards .......................................................................................................................... 8

Student Placements .............................................................................................................................. 8

Other issues such as transport infrastructure ....................................................................................... 9

Cultural taboos ..................................................................................................................................... 9

Business Communication ........................................................................................................ 10

Face-to-face communication .............................................................................................................. 10

Language matters ............................................................................................................................... 10

Useful phrases 10

Making contact ................................................................................................................................... 12

Personal titles ...................................................................................................................................... 12

Business Etiquette .................................................................................................................. 14

Corporate social responsibility ........................................................................................................... 14

Punctuality .......................................................................................................................................... 14

Gift giving ........................................................................................................................................... 15

Business dress code ............................................................................................................................. 15

Bribery and corruption ....................................................................................................................... 15

Business Meeting Etiquette .................................................................................................... 17

Importance of business meetings ........................................................................................................ 17

Business meeting planning ................................................................................................................. 17

Negotiation process ............................................................................................................................ 18

Meeting protocol ................................................................................................................................ 18

How to run a business meeting .......................................................................................................... 18

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Follow up letter after meeting with client ........................................................................................... 19

Business meals .................................................................................................................................... 19

Business meetings tips ......................................................................................................................... 20

Internship and placement ....................................................................................................... 21

Work experience ................................................................................................................................. 21

Student Placements ............................................................................................................................ 21

Internship and placement advice ....................................................................................................... 21

Social security and European health insurance card ......................................................................... 21

Safety .................................................................................................................................................. 21

Do I need a visa? ................................................................................................................................ 22

Internship and placement salary ........................................................................................................ 22

Internship and placement accommodation ........................................................................................ 22

Cost of Living ........................................................................................................................... 23

Money and banking ........................................................................................................................... 23

Travelling costs ................................................................................................................................... 23

Work-‐life Balance .................................................................................................................... 24

National holidays ................................................................................................................................ 24

Working hours .................................................................................................................................... 24

Working in Hungary .......................................................................................................................... 25

Work culture ....................................................................................................................................... 25

Health insurance ................................................................................................................................ 25

Social Media Guide ................................................................................................................. 27

Private individuals .............................................................................................................................. 27

Search and Social Media Marketing for International Business ........................................................ 27

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Business Culture in Hungary

The following is a very short introduction to Germany. External links at the end of this page provide you with more in depth information concerning different topics.

The following video gives you an overview of the general facts:

http://www.youtube.com/watch?v=H5isEVENRVI

Hungary is a landlocked Central European country, the 16th largest in Europe (93,030 km2).

It is a member of the European Union since 2004 and a member of the Schengen area since

2007. Its neighbours are: Slovakia, to the north; Ukraine, to the north-east; Romania, to the

east; Serbia, Croatia and Slovenia to the south; and Austria to the west. The Hungarian

territory consists mostly of plains and hills. Hungary’s climate is temperate, being influenced

by three important climate zones: oceanic, continental and Mediterranean. Consequently, it

can experience dramatic weather changes. The annual average temperature is 9.7°C

(49.46°F) across most of the country and 11.2°C (52.16°F) in Budapest. The population of

Hungary totals 9,909,000 (January 2013). With a population of 1.7 million inhabitants,

Budapest has the role of economic and political centre of the country. The largest Hungarian

cities, beside Budapest, are: Debrecen (205,000), Miscolk (178,000), Szeged (164,000), Pécs

(159,000) and Gyõr (126,000).

Hungary has a birth rate of 9.1‰ (2012), and a slightly higher death rate, at 13‰ (2012).

The age distribution of the population is: 15.6 % are 14 years old or younger, 69.2 % are

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between the ages of 15 to 64 and 15.2% are 65 or older. Hungary’s main ethnic group is

Hungarian (92.3%). Its most numerous minorities include: Romany (5%), Germans,

Romanians, Slovakians, Serbians and Ukrainians.

Hungary is in the Central European Time Zone and is one hour ahead of Greenwich Mean

Time (GMT+1) during the winter months and two hours ahead of it (GMT+2), to

accommodate Daylight Saving Time (DST), from March to October.

The weather in winter is rather cold, cloudy and damp, or windy, while summers are warm to

hot and dry.

Xenophobia: being a foreigner in HUNGARY

Hungary welcomes international business opportunities. In business, Hungarians consider

personal relationships crucial. Face-to-face discussion is absolutely essential in business

matters and a solid relationship relies on repeated visits and phone calls.

In their business dealings, Hungarians tend to be formal, adhering to hierarchical

organizational structures, and yet expressive, with typical negotiations taking place through

open dialogue. Hungarians are also generally outspoken and for this reason some foreigners

may perceive them as abrupt, rude or even cruel. However, they always provide evidence in

support of their words and when they cannot reach an agreement they tend to explain why

and may propose new talks.

In business and in private life, the right relationships are important and common sense and

discernment are much. The Hungarians’ tendency towards distrust and suspicion can be

attributed to historical reasons, so unpleasant points are discussed to mitigate future business

problems as much as possible. The first meeting is always characterized by a reserved

attitude but, once the ice is broken, Hungarians are rather passionate and their verbal

exchanges can be very intense and spirited.

A Hungarian business partner can easily turn into a friend. Nevertheless, building a trusting

relationship usually takes a long time. A good sociable atmosphere at work plays a bigger role

than other factors (business results, financial statements). When they feel part of an inspiring

project, Hungarians show passion, originality, generosity and industry. Important decisions

are usually made by the top management, which may sometimes slow down the talks.

International business in HUNGARY

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This section focuses on the general business environment in Hungary. In the first section, we

examine the attitudes and values of the people, while the section presents a business-related

perspective of the education system, training and placements in Hungary.

Knowing the attitudes and values of your business partner can be extremely important for

opening and maintaining effective relationships with your foreign partners. This will allow you

to avoid mistakes that could result in cultural barriers, which could hinder your success in a

particular country.

How can the work-life balance be described, in the case of Hungary? What is the Hungarians’

attitude to foreigners and what subjects should be avoided? All these pieces of information

may become extremely valuable when doing business in Hungary. The following section will

highlight essential attitudes and values and their consequences in business practice in

Hungary.

Young people are enthusiastic about trying their chances abroad or in different areas in

Hungary, but the older generation is generally reluctant to move around, being attached to

the places and the people they are used to. Of the most numerous minorities in Hungary, 5%

of the population are Romany, who are extremely poor and often find work in the grey and

black sectors of the economy, which still accounts for a considerable portion of the GDP. Due

to cultural prejudices and the status of the Roma population in Hungarian society, it is best

not to bring up the subject in conversation.

The economy in Hungary is improving despite the economic difficulties and the introduction of

austerity measures by the government. Unemployment is around 10% and competition for a

job remains high. Workers with specialist skills have more chances to find a job and graduates

can find work in one of the main companies with subsidiaries in Hungary. Normally, graduates

will be faced with fierce competition from qualified local professionals. So, it is good to know

Hungarian when in search of a job. English and German are also widely spoken in Hungary,

particularly by the younger generation.

Some of the major industries are: mining, metallurgy, textiles, chemicals, construction,

processed food, motor vehicle manufacturing and agriculture. Among the areas of recent

growth, one can find the domains of retail, services, telecommunications, finance, machinery,

and the pharmaceutical industry.

General education

In Hungary, school is obligatory between the age of 5 and 16. Most schools and kindergartens

are set up and run by the state, local governments, minority local governments, legal entities

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(foundations, churches, etc.) and natural persons. Only 10 per cent of children attend private

institutions.

Primary schools are obligatory, and may have 4, 6 or 8 grades. General secondary schools

continue primary school education up to the 8th grade and conclude with the so-called

maturity examination. Secondary vocational schools currently provide upper secondary

general and pre-vocational education in grades 9-12/13 (an extra year is included in certain

programmes starting with a language preparatory year). The secondary school leaving

examination qualifies for higher education entry.

Beginning with September 2013 (following the Vocational Education and Training Act of

2011), there will be a secondary vocational education in parallel to the general one from

grade nine. The pupils undertaking it will obtain a “vocational secondary school leaving

examination”.

The new VET Act of 2011 launched a three year-programme (grades 9-11). In some schools

this offer became available in 2012, and as of September 2013 vocational schools can only

offer this type of training. Graduates can go on with their studies at post-secondary non-

tertiary level or in higher education only if they complete three more years of a full- or part-

time general education programme in order to pass the secondary school leaving

examination. In the new structure of vocational education, graduates can acquire a secondary

school leaving certificate within two years. Those who do not have this certificate but pass the

master craftsman examination and at the same time accumulate five years of work

experience can enter post-secondary VET.

In Hungary, 81% of adults aged 25-64 are the possessors of an equivalent of a high-school

degree. This situates Hungary above the OECD average of 74%.

Out of the best 44 universties in Hungary, half are located in Budapest. the other half being

spread throughout the country.

All the signatory countries of the Lisbon Convention (Hungary inclued) allow the possessors of

a valid school leaving certificate who qualify for higher education studies in their home

country to also qualify for higher education studies in the other countries. However, an

appropriate knowledge of either Hungarian or English needs to be demonstrated. Sometimes

additional qualifying courses (preparatory courses) are also necessary.

To join a master’s degree program, a relevant Bachelor’s or equivalent degree diploma is

needed.

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To apply for doctoral studies at an institution in Hungary, you need a relevant diploma or

Master’s degree program.

Scholarships fall under two systems: bilateral agreements and scholarship pool. Romania

benefits of the second category.

Scholarships can be received for: semester/partial studies for a period established in

advance; postgraduate studies; full / partial PhD studies; postdoctoral studies; research stay;

and summer courses.

Where do local residents and expatriates send their children to school?

Most Hungarians use the public school system. Children normally go to the local public

schools in their area. In almost all Hungary, public schools are the only option.

In Budapest, there are several international schools and private bilingual schools; they all

charge tuition fees. International schools are very expensive for ordinary Hungarians and so

these schools are available to a small minority.

Most expatriates send their children to international or private schools. International schools

accept students (non-native speakers) at all times throughout the school year, and provide

language support. If the family plans to be in Hungary for an extensive period, private

bilingual schools can help children attain an effective knowledge of Hungarian while studying

some subjects in their native language. These possibilities are characteristic rather for

Budapest and main cities than for the rural areas. International schools frequently have wait

lists.

Educational standards

Just as in other European countries, the educational standards are similar for all levels of

education. This offers the advantage of compatible education with other counties. During

undergraduate studies, certain specializations require the students to go through a practical

work experience.

Student Placements

A placement involves the placement of a student in a temporary work, school or research

environment to acquire valuable experience profitable in the long run.

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There are several student organizations facilitating student placements in Hungary: the

International Association for the Exchange of Students for Technical Experience (IASTE) helps

students find summer placements for science and engineering; AIESEC (Association

Internationale des Etudiants en Sciences Economiques et Commerciales) facilitates the

exchange of information on programmes for students and recent graduates worldwide; the

Leonardo Da Vinci Programme helps students with vocational training and business

placements and is funded by the European Commission.

In the private sector, placements can be found more often in multinational companies, which

are, many of them, based in Budapest.

Other issues such as transport infrastructure

To go to Hungary you can use the airplane, train, bus or car. All the transport networks are

available around the country and generally respect s the international rules.

Airport – most important airports are Budapest Airport, located at 16 km from Budapest city.

It could be reached by bus or train. Other airports are Heviz-Balaton Airport, Debrecen

International Airport, Gyor-Per Airport, Pecs-Pogany Airport all of them related wit tourist or

economic centres.

A network of about 7.600km of railways and 1515 km of highways are available to travel

around the country. The main cities are connected through railway and highways.

Public transport in Budapest includes buses, trolleybuses, trams and underground trains.

Cultural taboos

Hungarians consider their country as part of Central Europe, rather than Eastern Europe. The

expression Central-Eastern Europe can also be deemed appropriate. Some topics are safe

(such as sport, the economy, culture, history, food, and family); while other more delicate

subjects should be avoided (religion, politics, minorities, salaries and living costs).

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Business Communication

The right language and gestures can be very important in establishing a trusting relationship.

During a meeting try to be polite and avoid giving the impression that you are in a hurry.

Hungarians like to take their time and evaluate a situation thoroughly before making

important decisions.

Face-‐to-‐face communication

Hungarians use circulars, memos and written records in their business dealings. They are not

very good at answering written communications or returning missed calls. So, in a business

context, it is better to invest in constant direct interaction. When business partners meet,

they usually shake hands with each other. When a man and a woman meet for business, it is

expected that the woman will extend her hand first. In Hungary, it is still considered good

manners for a man to open the door for a woman and such like.

Maintaining direct eye contact is when being spoken to is crucial, in both social and business

situations. You should maintain a medium interpersonal distance of about an arm’s length

between you and a Hungarian partner; any more may be taken as a lack of respect or an

expression of mistrust, which could complicate the talks. Verbal communications should

always be clear and direct.

Language matters

Hungarian is the official language of Hungary, but many people speak several languages

because of its closeness to many countries. The business language in Hungary is English and

most Hungarian business people speak English to different levels of ability. Learning a few

words and phrases in Hungarian is a good way to break the ice and impress your host.

Hungarians are not generally reserved, but they might give that impression on the first

meeting. Nonetheless, once they get familiar with you, they are able to relax and

communicate more. If a business relationship develops into a partnership, your Hungarian

counterpart might invite you to their home for a meal and to meet the family.

Useful phrases

The following table contains phrases that you may find useful when visiting Hungary:

English-Hungarian:

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• Hello. Heló.;

• Hi. Heló.;

• Good morning. Jó reggelt.

• Good afternoon. Jó napot.

• Good evening. Jó estét.

• Goodbye. Viszontlátásra.

• Bye. Viszontlátásra.

• See you. Viszontlátásra.

• Good night. Jó éjszakát.

• Have a good day. Kellemes napot kívánok.

• Have a good weekend. Kellemes hétvégét.

• Safe trip. Jó utat.

• Take care. Vigyázzon magára.

• Good luck. Sok szerencsét.

• Have a good holiday. Kellemes nyaralást.

• I don’t speak Hungarian. Nem beszélek magyarul.

• I don’t understand. Nem értem.

• My name is Peter. A nevem Peter.

• Nice to meet you. Örülök, hogy megismerhetem.

• Thank you! Köszönöm!

• Thank you very much! Köszönöm szépen!

• You are welcome! Szívesen!

• Sorry! Sajnálom!

• I’m sorry I’m late! Elnézést a késésért!

• It’s all right, don’t worry! Semmi probléma!

• Excuse me! Elnézést kérek!

• Yes! Igen!

• Of course! Persze!

• OK! OK!

• That’s fine! Redben!

• You’re right! Igaza van!

• That’s great! Nagyszeru!

• No! Nem!

• I think you’re not right! Azt hiszem, nincs igaza!

• It’s impossible! Lehetetlen!

• I don’t agree! Nem értek egyet!

• Cheers! Egészségedre!

• Bless you! Egészségedre!

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• Business relationship

Hungary welcomes most international business opportunities. Due to the need to build

personal relationships in business, recurrent visits and phone calls are necessary. Indeed,

important phases in the development of a business relationship require face-to-face meetings

to show respect and build up the necessary level of trust.

Making contact

Communication is an extremely important aspect of business, and when dealing with people

from different backgrounds, the differences between face-to-face, verbal and written

communications need to be recognized.

Hungary has a strategic location in central Europe, which makes it perfect as a central

distribution point for Europe. The government policies favour the creation and expansion of

new companies and support foreign investment. Nevertheless, to start a business in Hungary,

it would be advisable to contact one of the Hungarian business development centres or an

international advisor for assistance. A good opportunity for direct meetings with business

companies is participation in business fairs, exhibitions or conferences. The most significant

national fair in Hungary is the Budapest National Fair, which takes place annually.

The Hungarian Convention Bureau provides a great deal of information and assistance with

planning meetings and conventions.

Once a potential business partner has been selected, it is best to approach them using a

written form of communication (fax or letter) to avoid possible language barriers and

miscommunications. You should express your preference concerning the language in which

you would like to communicate, and mention whether or not you speak Hungarian. Email is

frequently used for everyday business communications, but any important documents are

exchanged on paper and many companies still use a fax to communicate.

Personal titles

Hungarian surnames normally precede first names, so pay attention when addressing your

Hungarian business partner. The right way to address a Hungarian man is ‘Mr’ followed by the

family name. If you are unsure whether your female business partner is married or not, then

call her ‘Miss’ with the family name or employ the increasingly popular Ms form. However,

many Hungarians, especially those working in international settings or for companies dealing

internationally, change the format of their names on their business cards to the style

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preferred by their international partners. Academic titles are rarely used and the only

exceptions are the medical and legal sectors. However, the title of Doctor is not expected to

be used when talking (e.g. Dr. Kovacs Janos). One can encounter three different ways of

addressing married Hungarian women. For example: Dr. Molnár Arpád (man) marries Dr.

Timár Andrea (woman). So, she might be addressed Dr. Molnár Andrea, Dr. Molnár Árpádné

or Dr. Molnárné Timár Andrea.

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Business Etiquette

Values and beliefs are measurements of the importance a person gives to something. The

way values and beliefs are expressed forms the attitude that is then revealed through words

and behaviour. Usually unwritten, these values and beliefs govern the expectations of social

behaviour within a society, social class or group. Accepting attitudes and values as essential

elements of every culture with a huge influence on people’s behaviour can contribute to

improved intercultural understanding and reduced misunderstandings when doing business

with foreign partners.

Corporate social responsibility

Corporate Social Responsibility (CSR) has become important in Hungary after its adhesion to

the European Union in 2004, not so much under the pressure of consumers, or civic pressure,

but rather as a result of the expectations of multinational corporations with Hungarian

subsidiaries. Just like in other countries, the activity of the CSR sector is visible in the

spreading of the concept through books and studies published on the subject and best

practices collections circulating on the web.

In Hungary, ecological problems are less marked than in the other countries of Central

Europe. Nevertheless, the high standards demanded by the European Union remain a

challenge, especially in terms of water pollution, waste management and air quality. A great

deal of money has been invested in improving waste management, with the aim of increasing

water quality.

Since 2005, Hungary has reformed its environmental policy in order to get closer to EU

standards. Investments, administrative measures and industrial restructuring have triggered

quite important improvements. Still, additional investments are called for to ensure the

protection of the environment and the control of industrial pollution. The most difficult

challenge remains a cultural one, namely to instil an awareness concerning environmental

protection.

Punctuality

Punctuality is extremely important when Hungarians meet foreigners. If possible, try to arrive

about ten minutes before your scheduled meeting time and allow for heavy traffic when

travelling in a city, especially in Budapest. Nevertheless, traffic is always a good excuse for

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being late. Compared to business meetings, public events almost never start on time, and a

delay of 5 to 10 minutes is typical. To be a “little bit late” is not a problem if you are a foreign

collaborator. Such a lack of punctuality will not influence business negotiations or the final

result.

Gift giving

In Hungary, gifts are not usually expected, except at Christmas time. Small presents, like a

corporate gift (such as a diary or pen engraved with the company logo) or a souvenir

representing the country you are coming from (such as liquor, artisanal handicrafts or

porcelain) would be acceptable but not necessary. An exchange of corporate Christmas cards

will also be appreciated.

If invited to a business partner’s home for a meal, it is normal to bring flowers, high quality

chocolates or a bottle of liquor from your country. It is important to note that there are a

number of cultural conventions surrounding the giving of flowers. Flowers should always be

given in odd numbers, except the number 13, which is considered bad luck. Also, lilies, red

roses and chrysanthemums, as these are typical at funerals. Bringing a bottle of wine may be

a difficult choice, as Hungarians are immensely proud of their wines.

Business dress code

In business meetings, Hungarians prefer traditional elegance. Cleanliness and tidiness are an

absolute necessity. Any formal business clothes are acceptable, with dark colours being

preferred during the winter and lighter ones in summer. During normal office hours,

Hungarians dress less formally. In small or medium sized businesses, there is usually no

official dress code and employees tend to wear casual business attire.

Bribery and corruption

With respect to corruption, Hungary has approved and signed the most important

international conventions against corruption. Although corruption continues to represent a

problem for the country, Hungary ranks among the least corrupt third of 176 countries (46th

place according to the Transparency International Corruption Perception Index 2012)

Corruption is perceived as highly prevalent amongst underpaid government officials. Party

financing and internal financial control are also areas where corruption is rife, due to the lack

of cooperation between state institutions. In the health care system, the practice of giving

“gratuities” is very common, where it is considered a cultural norm rather than serious

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corruption. There is no independent organization charged with the duty of fighting corruption.

Responsibility for law enforcement is divided between the Police and Border Guards, with

certain criminal offences under the investigative remit of the Customs and Excise Authority.

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Business Meeting Etiquette

As in all European countries, in Hungary the business meetings are one of the important

issues. People, even if they are not very friendly, they need to share experience, to discuss on

strategies, opportunities and further development of they company, but also to talk with the

business partners. After you meet your partner and discuss details of the business people are

more confident about the further evolution of the contact.

Importance of business meetings

In Hungary, hierarchy is very significant for the business community and crucial decisions are

reserved for management. Consequently, business meetings are generally considered

necessary to exchange ideas and talk, but they are rarely perceived as opportunities to get

things done. During a first meeting, Hungarians are formal and polite, although they prefer

less formal meetings, without the rigidity of schedules or deadlines, where they can honestly

express their opinion. Hungarian partners are not patient and want quick answers to their

questions, though they are not good at doing the same when asked. It is best not to rely on

verbal agreements. Promises made during the meetings are usually respected, but

agreements are only binding when signed into a written contract.

Business meeting planning

When proposing a meeting, you should offer several alternative dates, out of respect for your

partner’s schedule. State the topic you wish to address, why you want to meet, and the

participants you desire to meet. If you want quick decisions, it will be necessary to ensure

that decision-makers are invited to participate. Try to obtain a written confirmation of the

place and time of the meeting with who is expected to attend, including name and function.

In case you cannot participate, always call or write to cancel the meeting in advance. The best

time for a business meeting is between 9 am and 1 pm – although a working lunch after

12:30 pm would be a good option. For a lunch, whoever is the host will be in charge of

reserving the venue, the meeting room and the refreshments. Always agree with your partner

on the language of the meeting. If an interpreter is needed, let your host know if you have

one or ask if they have someone they can bring. Sometimes a colleague of your partner may

be able to translate. If they do not know your business, take with you some supporting

material.

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Negotiation process

Business negotiations can be perceived from the perspective of relationships rather than the

deals that can be made. During talks, Hungarians are more direct than polite. Most Hungarian

businessmen seem to enjoy bargaining and wise negotiators make allowances for this

bargaining nature until the discussions have come to a conclusion. The opening bid should be

pragmatic, but at the same time should include enough room for manoeuvre. Hungarians are

known to be well prepared and flexible in business negotiations, where the main goal in their

strategy is to obtain a final agreement. They are ready to compromise only if they had

already included this as one of the possible solutions.

Talks can last for different periods of time, depending on partners’ attitudes and on the nature

of the sector. Negotiating with the public sector usually takes longer than with the private

sector. Hungarians like to express vividly their satisfaction about how well they do things.

Meeting protocol

Greet your partner looking them in the eyes, shake hands firmly, state your name clearly and

present your business card. Shake hands with all the participants. Pay attention when your

partner pronounces their name. Once introduced, address your counterparts by their title and

family name if you are not invited to do otherwise. If your hosts invite you to call them by

their first name, this will be a sign that the relationship has reached a certain level of comfort,

without necessarily meaning that you are negotiating on friendly terms. Business cards are

usually exchanged at the beginning of a meeting. Hungarian business cards contain all the

necessary business information and occasionally personal details (mainly for entrepreneurs).

If you place your partners’ business cards in front of you when discussions begin, it may help

you remember names and positions. Most Hungarian companies naturally use Hungarian as

the language of their business card. International companies will usually have their business

cards in two languages, Hungarian and English. When saying good-bye, shake hands again

with all the participants.

How to run a business meeting

Hungarians usually begin their meetings with some small talk. Agendas are not necessarily

adhered to and instead, spontaneity is often a driving force. Meetings can tend to run late, as

Hungarians like telling jokes and debates are always taken seriously. To facilitate

understanding, it is important to use clear and simple language and provide supporting

documentation during meetings. If the meeting is conducted in English, Hungarians may say

some things between themselves in Hungarian to make sure they all have a common

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understanding of the discussion. When presenting a project, do your research because you

need to give good reasons and arguments. Hungarians are known to be inquisitive and if you

want to convince Hungarian managers, you will need to prove your ability for reflective

thinking. They will appreciate a broad knowledge of the context more than just a narrow field

of specialization. Be prepared to answer many questions. Often, especially with a large

delegation of attendees, decisions will not be made on the spot. Decisions are usually made

when management has had the time to reflect and discuss. During meetings, coffee, tea, soft

drinks and water will be offered; and sometimes a sandwich lunch may be provided.

Follow up letter after meeting with client

Written memos usually sum up the main points of any discussion, the decisions made and the

actions to be taken. Either party may send out these meeting summaries several days after

the meeting.

Once both sides have come to an agreement, it is important for the Hungarian partner to

confirm the agreement in writing and shaking of hands. Hungarians are proud of their

language skills, but they sometimes overestimate their abilities. So, it is important to ensure

that all agreements and decisions are written and agreed to in both languages to avoid

confusion and misinterpretation. Signing of a written agreement is a formal and necessary

recognition of the end of negotiation.

Agreements should always include detailed descriptions of action items, deadlines, milestones

and the name of the person who will be responsible for each piece. Regardless of the success

of a business meeting, it is always a good idea to write to your hosts and thank them for their

time and efforts following the meeting.

Business meals

To be invited to a business contact’s home is a rare event and an honour in Hungary, which

happens when a business relationship turns into friendship. Otherwise, business meals and

entertaining typically take place in restaurants. Business meetings take place in the office,

bigger events in hotel meeting rooms. Breakfast meetings are not common and tend to only

occur on a visitor’s request. Business lunches do happen, but an evening meal is preferred as

the main way to relax and get to know each other. Breakfast is served between 8am and

9am, lunch between noon and 2pm, while the evening meal starts around 7 or 8 pm. Business

lunches and dinners are usually fairly formal, so formal dress is recommended, especially on a

first meeting. When a business dinner is more for entertaining and spending time getting to

know one another, rather than discussing business, then more casual attire can be worn.

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Hungarian people are famous for and proud of their hospitality. They may also propose non-

business activities (e.g. sightseeing). Socializing outside business is seen as part of doing

business and they may suggest activities like sightseeing to complement your visit.

Business meetings tips

You should know your subject matter intimately, but do not appear condescending or talk

down to your Hungarian partners. Hungarians hate being underestimated, as they are proud

and expect to be treated as equals. Ask for their opinion, give them time and they will

produce numerous theoretical ideas. They may sound pessimistic or cynical now and then, but

they are very creative and this is just their normal style of doing business. Once they begin to

gain trust in a relationship, they will start showing their appreciation and will be motivated in

finding ways towards a win-win solution.

In Hungary, the temperature may rise to over 30oC in summer and fall to less than -10oC in

winter. Large hotels usually have air conditioning, but this is not always the case in

restaurants or offices, so you should plan accordingly.

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Internship and placement

Work experience

Just as in other European countries, during undergraduate studies, certain specializations

require the students to go through a practical work experience.

Student Placements

A placement involves the placement of a student in a temporary work, school or research

environment to acquire valuable experience profitable in the long run.

There are several student organizations facilitating student placements in Hungary: the

International Association for the Exchange of Students for Technical Experience (IASTE) helps

students find summer placements for science and engineering; AIESEC (Association

Internationale des Etudiants en Sciences Economiques et Commerciales) facilitates the

exchange of information on programmes for students and recent graduates worldwide; the

Leonardo Da Vinci Programme helps students with vocational training and business

placements and is funded by the European Commission.

Internship and placement advice

Universities, students’ organization and other structures are willing to organise the placement

for the students. They have to settle agreements with the host companies and to plan the

internship program.

For the students that are interested in getting by themselves a job or a placement opportunity

the main sources of the vacancies are presented below.

Social security and European health insurance card

If, as a student, you need medical help, being a citizen of the European Union, you can ask

for an international social insurance card (EHIC). This card allows you to receive treatment

under the same conditions and at the same costs as any Hungarian citizen.

Safety

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In Hungary, safety precautions are similar for those of other countries. Non residents should

try to beware of pickpockets and should not leave their luggage unattended.

Do I need a visa?

Citizens of the EU do not require a visa to enter Hungary. For them, an identity card is

sufficient to travel throughout the European Union.

Internship and placement salary

Like in other European countries, usually internships are not paid.

For a paid job during the internship, students can search online for information and for a list

of companies.

The minimum wage in Hungary is €260 per month and the average blue-collar worker has a

net monthly income of €340. With such a salary, it is often a considerable challenge for

workers to make ends meet. Office workers and professionals earn almost twice the salary of

blue-collar workers.

Internship and placement accommodation

Depending on the organisation, a student may need to find their own accommodation. If

working with a non-profit organisation e.g. in the field of humanitarian work a room and even

food may be provided.

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Cost of Living

A student with a limited budget, including paying the rent, going out once or twice a month,

and eating at a cheap restaurant needs at least €400 per month to live basically. The cost of

running a family home would be at least €1000 per month in the suburbs and three to six

times greater in certain districts in Budapest.

Universities generally provide information on the possibility of renting student apartments and

accommodation.

The price of a flat or shared apartment can vary widely.

Money and banking

Non residents of Hungary may find it difficult to open a bank account if they do not live in the

country. Yet, there are banks that open accounts to non residents as well.

Short-term residents may also find it difficult to open a bank account as some banks require

their clients to prove their long-term residence.

Travelling costs

Travel costs depend on the city in which you are staying in Hungary. Larger cities tend to be

slightly more expensive than smaller ones in point of travelling costs.

Foreign students can benefit of a discounts of their transport fees, with a valid student card.

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Work-‐life Balance

Hungarians do not mind working overtime for the sake of a good life for themselves and their

families. As in other developed countries, a balance between work and leisure time is

sometimes hard to find.

Once a comfortable business relationship has been established, Hungarians usually enjoy

talking about their families. An average Hungarian family has no more than 2 children. During

their adulthood, children, just as the elderly and extended family are expected to provide for

themselves and do not normally receive financial support from their relatives. Usually, both

spouses go to work and many will get a second job in farming or small family enterprises to

be able to earn sufficient income. The declining birth rate is ascribed to the increasing number

of educated and economically active women who are tending to marry later in life and have

fewer children. Important events such as weddings, funerals and other occasions bring the

family together. When abroad, Hungarians tend to maintain their national ties and establish

local communities.

National holidays

The Public Holidays in Hungary are: January 1 (New Year’s Day); March 15 (National Day);

May 1 (Labour Day); August 20 (Constitution Day/Saint Stephen’s Day); October 23 (Republic

Day); November 1 (All Saints’ Day); December 25-26 (Christmas).

In Hungary, people can take 21 days of vacation, which increases with seniority. Hungarians

tend to take their holidays in June, July and August and around Christmas in winter.

Sometimes, when Public Holidays fall on a Tuesday or Thursday, workers may exchange a

Saturday in order to gain a long weekend.

Working hours

A standard working week is 8 hours a day, 5 days a week, starting at 8 or 8:30 am. Part-time

work is not well regulated yet and business people commonly stay late at work, even on

weekends. As office hours may vary, you should check before contacting your business

partner. Friday is often a short day and business people may leave at about 4 pm or earlier.

Banks generally open at 8am and close early, while shops are open until 6pm from Monday to

Friday. Daily lunch breaks usually do not last long, although business lunches may turn into

long discussions.

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Working in Hungary

Generally, working hours and employment conditions (defined in the Hungarian Labour Code)

are like in Western Europe. Fulltime working hours are generally eight hours a day (40 hours

per week). Despite some flexibility in certain employment areas, the rules in force make sure

that working hours do not go over 12 hours a day (60 hours a week).

Holiday leave in Hungary is in harmony with age, although employers may offer more than

the minimum. Holiday entitlement starts from 20-30 days, and increases as one gets older.

Moreover, there are ten public holidays, including Christian festivals and Hungary’s National

Day (October 23).

In point of tax rates, personal income tax is commonly 16%. The employer also deducts an

additional amount from the gross salary for pension insurance (10%), health insurance (6%)

and labour market contributions (1.5%) (paid directly to the National Customs and Tax

Authority – NAV).

Work culture

Hungary work culture is mainly based on seriousness, good quality and respect of the

customers. The working program is according with the international labour regulation of 40

hours per week, but it could be extended since the employees are interested in additional

income. Second jobs are also an option for the ones interested, the general behaviour is in

favour of work.

Punctual and dedicated to their jobs, Hungarian are efficient at their working position no

matter the field of activity. In business they are hard negotiators, but ones their obligations

are settled the results are on the way.

Health insurance

If you get ill or have an accident during a visit to Hungary, free or reduced-cost treatment is

available, in most cases, on production of a valid EHIC card or relevant documentation. This

only covers state-funded hospital treatment, so you will receive treatment on the same terms

as insured residents of Hungary. Treatment in private clinics is generally not covered without

additional private health insurance and sometimes you may have to pay for a part of the

treatment received from the state-hospital. Pharmacies are usually open from 8am to 8pm

from Monday to Friday for prescriptions and over-¬the-counter drugs. However, pharmacists

are not allowed to distribute controlled medication without a prescription from a doctor.

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Pharmacies are usually open from 8am to 8pm from Monday to Friday. There are also

designated duty pharmacies that can be accessed during the night, at weekends and on public

holidays. Three types of hospital exist in Hungary: the standard type (“korhaz”), a hospital

tied in with a university (“klinika”) and a private clinic (“rendelo”).

The national emergency telephone number for ambulance services is 104. (Source: Global

Market Briefing. (2003) Doing Business with Hungary. London, Kogan Page).

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Social Media Guide

Private individuals

In 2012, there were 6,516,627 internet users in Hungary (65.3% of the population),

according to Internet World Stats.

Three fourths of the population have used the internet at some point, according to the

Hungarian Central Statistical Office (March 2012)

Hungarians consider the internet as an indispensable tool to manage their lives.

Gfk Hungaria consider there are five basic group of internet users: fanatics or people

emotionally attached to the net (230 000); those hanging on the net, who are interested in

Wikipedia and writing blogs (320 000); gadget maniacs, who like to use not so much the

internet as the mobile tools connected to it (about half a million people); targeted information

seekers (750 000); and the distrustful, who fear viruses and the protection of their personal

data (1.1 million people).

Search and Social Media Marketing for International Business

Learn how to use social media for business from one of Salford Business School’s latest

business management courses. The course was jointly researched by the Passport to Trade

2.0 project team and prepared in collaboration with some of the leading digital marketing

agencies in the UK.

This Massive Open Online Course (MOOC) can help businesses and individuals to make the

best use of search and social media platforms. The course is called Search and Social Media

Marketing for International Business and is applicable to students looking for placements

abroad as well as businesses thinking about new trade links; it comprises the following

twelve topic:

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How to develop a personal brand online (1/12)

http://www.youtube.com/watch?v=l9LYw0mgtn4&feature=player_embedded

• Whether you are a student beginning a job search or a business person planning a new business venture, personal branding can make a difference.

• Learn about personal branding and why it is important for you.

How to use Twitter (2/12)

http://www.youtube.com/watch?v=9CVY3pp91Dc&feature=player_embedded

• Learn the basics of using Twitter to develop an individual or business profile.

• Remember to use hash tag #SSMMUoS to share your learning journey on this course so far!

How to use Search Engine Optimisation (SEO) (3/12)

http://www.youtube.com/watch?v=zw27cRcwtM0&feature=player_embedded

• Learn the principles of SEO to ensure that your website and any social media profiles are found by individuals searching for your name, products and services.

• These basic principles of SEO include keyword research, on-page optimisation and off-page optimisation.

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How to use social media for international business development (4/12)

http://www.youtube.com/watch? v=Bx-B56AHS4c&feature= player_embedded

• Social media networks break down the traditional country barriers, but do you know which networks are relevant for the country you are interested in trading with?

• Find out in this video how to identify the relevant networks and what social media strategies you might be able to use on these networks.

How to use Facebook (5/12)

http://www.youtube.com/watch? v=UmRGn-vdcO8&feature= player_embedded

• Facebook is currently the largest social media network in the world and it can benefit you as a business as well as an individual.

• Learn how to develop a Facebook business page and see how other businesses use it and what strategies work for them.

How to use YouTube (6/12)

http://www.youtube.com/watch?feature=player_embedded&v=G20OVpmTBss

• YouTube was identified as the second largest social network amongst younger internet users as part of the Passport to Trade 2.0 project.

• Learn how to optimise your video content in order to reach wider audiences for your profile.

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How to use LinkedIn (7/12)

http://www.youtube.com/watch?v=N6e_EAUQqic&feature=player_embedded

• LinkedIn is one of the three main professional social networks – the others being Xing and Viadeo which are also popular in several European countries.

• Learn how to make the most of LinkedIn for your profile.

How to use Google+ (8/12)

http://www.youtube.com/watch?feature=player_embedded&v=8ti3SPHkEWw

• Google+ is the second largest social network as of January 2013.

• It is one of the fastest growing social networks and one that has the biggest impact when it comes to search engine results integration for anyone who uses Google as their main search engine.

• Learn how to make the most of Google+ for you and your digital profiles.

How to use copywriting online (9/12)

http://www.youtube.com/watch?v=5f1hx_f2ONI&feature=player_embedded

• Copywriting is a process of translating technical specifications and product descriptions into engaging and understandable customer focused text.

• Learn about the basic techniques in structuring your online content here.

How to stay legal on social media (10/12)

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http://www.youtube.com/watch?v=eQxD-piHsdk&feature=player_embedded

• Everything and anything you do and say online can be potentially viewed by anyone who has internet access.

• Always respect the law and familiarise yourself with new options offered to you through a creative commons licence which is popular online.

How to use monitoring and reporting (11/12)

http://www.youtube.com/watch?v=LbEq7jsG0jg&feature=player_embedded

• Whether you are an individual or a business spending time on social media – there has to be a return on your engagement online.

• How do you justify your engagement on social media to your boss? Listen to the industry experts in this area and see what you might be able to measure in respect of your on-line engagements.

How to blog (12/12)

http://www.youtube.com/watch?v=OqVjR7oI8Rs&feature=player_embedded

• Blogging is a process of writing text and sharing content with others. It can help your customers or friends to keep in-touch regardless of social media platforms.

• Think about the voice you might want to adopt and who your audience might be. Share your thoughts with us by writing a blog post about this MOOC.

• Tweet us the link to your post on the #SSMMUoS Twitter hash tag.

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Passport to Trade 2.0 Project Partnership Five Universities:

Lead partner: Salford Business School, University of Salford, United Kingdom

Elena Vasilieva Aleksej Heinze Alex Fenton

URENIO research unit at Aristole University of Thessaloniki, Greece

Christina Kakderi Nitsa Papadopouloui

TSE Entre Research Centre Turku School of Economics, University of Turku, Finland

Satu Aaltonen Elisa Akola

Institute for Information System Research University of Koblenz-Landau, Germany

Verena Hausmann Susan P. Williams Petra Schubert

Valahia University of Targoviste, Romania

Adriana Grigorescu Leonardo Badea

Three Small & Medium Sized Enterprises (SMEs)

Spin, Italy

Carmine Antonio Donato Dorella De Tommaso

Technology Development & Innovation – TDI LTD Bulgaria

Milanka Slavova Ivan Stoychev

TIS Praha, Czech Republic

Anna Klosova Richard Adekeye

Hungarian business culture guide - Learn about Hungary

Education

Transcript of Hungarian business culture guide - Learn about Hungary