Crazy Job Hopping Season: Professional Manager'S Property Market "Cold Winter"

At the beginning of 2020, a series of important personnel changes opened a prelude to the new year's changes in the real estate industry.

Lucheng CFO Feng Zheng resigned and joined the long Guang real estate. Fu Minglei, President of the former China happiness foundation peacock city residential group, joined the long Guang real estate; Zhao Hui resigned as chairman of the real estate company; Zhang Wenlong, the chief marketing officer of Rongxin group, resigned; Xiao Chun, vice president of the Jung Jung group and Henan Cambridge group; Feng Xiaochuan, general manager of Yuzhou commercial real estate, resigned; general manager of Tian Fang Development resigned;

As a highly mobile industry, the "people coming and going" of the real estate industry is not new. But over the past year or so, personnel changes in the industry have been frequent.

According to incomplete statistics, in 2019, there were more than 90 executive positions in housing enterprises, with a total turnover of more than 200 personnel. Among them, job hopping and leaving more than half were transferred to 30%, and two were replaced in one year.

In the official announcement issued by the housing enterprises, most of them are interpreted as "personal reasons". But as we all know, with the constant pressure on the housing market regulation and the increasingly fierce competition in the industry, the pressure of professional managers is also increasing. In the flow of executives of housing companies, objective factors may be more.

Another reality may be even more brutal. A senior manager of a large housing company in Beijing told the twenty-first Century economic report that under the condition of declining profit margins, the compression of human cost has become the norm in the industry. In the next few years, layoffs and wage cuts are inevitable, and the real estate industry will usher in a real turbulent period.

"People say that real estate has bubbles, and I say the biggest bubble is talent." In mid 2019, Huang Qisen, chairman of Taihe Group, said in an interview with the media. Now, the prophecy is coming true.

When the housing bubble was squeezed, did the bubble of real estate industry begin to burst?

In 2019, the sales scale of large housing enterprises generally increased, and Housing enterprises completed relatively good sales tasks, but the marketing staff's life was not easy. Gan Jun photo

Under the nest

Sales posts have always been the key posts of personnel changes in housing enterprises. The increase or decrease of projects, whether the sales tasks are completed or not, whether or not to use ditch companies may have a bearing on the sales staff's retention and retention. In 2019, the sales scale of large housing enterprises generally increased, and Housing enterprises completed relatively good sales tasks, but the marketing staff's life was not easy.

"You just look at sales, in fact, the company's assessment of us is very detailed." The Chengdu regional leader of a housing company in East China told the economic report twenty-first Century that the rate of return has become a "hard target" in the past two years. According to the disclosure, the company's requirement for return rate is 85%, and it is not easy to achieve this goal when the credit audit is strictly strict.

In addition, in many companies' assessment, the bottom line profit of a single city or project must also be guaranteed. That is to say, the trader should complete the sales task, make sure the money back, and not rely too much on the price strategy.

In some parts of the world, because of the fierce competition, ditch companies is taking the opportunity to rise, and also squeezes salesmen. According to the source, in a certain place in Sichuan, a large housing enterprise will abolish all the salesmen of a project and replace it with ditch companies.

In 2019, the turnover of financial staff was also unprecedented. In March, Wang Yan, vice president of renhang land (formerly known as Wang Zhe) joined Sony holdings as vice president and CFO, but only 7 months later he resigned again.

Since then, CFO's departure or job hopping behavior has spread rapidly. In 2019, Xu Hui, Yida China, Ya Ju Le, times China, Yu Zhou, Jing Jing Tai Fu, far east development, Dafa real estate, Xinli holding company and so on all appeared the personnel change of this position.

The change of financial personnel may be related to the difficult environment of financing. In the second half of 2019, many housing enterprises faced the situation of tight liquidity. Relevant person in charge of a large trust company told the economic report twenty-first Century that last year, many housing enterprises had received cooperation needs, and housing companies generally accepted relatively high financing costs. However, due to unprecedented stringent auditing, the scale of real lending is not large.

Under the background of regulation and control, enterprises have adjusted their structures in a large scale, personnel changes in housing enterprises almost cover all positions.

At the end of 2019, Vanke launched a major regional shift involving 3 regions and 14 cities. Sunshine city will set up a large area system to control and merge the 13 regions. Prior to that, Biguiyuan, Greentown, Blu ray, Zhongliang, Rongxin, Xiangsheng and other housing enterprises also implemented the management structure adjustment. These adjustments aimed at optimizing management involve a large number of personnel changes.

Beijing Housing enterprises believe that the real estate personnel changes will continue, the future may affect more brands, property management and other posts. The reason is that with the focus of the delivery period of Housing enterprises, the potential quality problems caused by high turnover are likely to focus on the outbreak, and bring pressure on brand, property management, customer service and other aspects.

Market or ability?

Vanke's management structure adjustment has been launched since the end of 2018. Vanke will extend the pay scale system from the past 28 levels to 50 levels, and the rank system will be adjusted from the past V1-V7 to GP (core partner), SP (business backbone) and JP (partner) three level. At the same time, the salary structure also adjusts to the direction of "low base salary and high performance". The purpose of this adjustment is to better motivate employees' effectiveness.

Vanke's action has always been considered as a vane. Yan Yuejin, director of the think-tank center of Shanghai Yi Ju Real Estate Research Institute, told the twenty-first Century economic report that in the past, when the market was good, real estate was not only a large number of employed persons, but the remuneration level of practitioners was quite good. At this stage, the profit margin of the industry has begun to decline. Many enterprises have begun to "reduce the cost and increase efficiency", and the compression of human cost is inevitable.

Real estate has always impressed the outside world with a high salary. In fact, although the salaries of practitioners in different posts are quite different, outstanding talents in key positions can really get the envy treatment.

More than 10 years ago, the excellent salesmen of large and medium-sized Housing enterprises could get hundreds of thousands of Yuan's annual royalty. In recent years, competition among industries has become increasingly fierce. It has become a common phenomenon to dig up people with double pay. Vice president level star professional managers, once can get tens of millions of levels of annual salary, other positions salary increases.

According to the "2019 person Wage Report" issued by Tencent financial management and other agencies, the three industries with the highest pay level are Internet, real estate and finance. In the reports issued by different agencies, the salary level of the real estate industry ranks the top ten.

But at the same time, the reflection on the industry's high wages has always been there. Many years ago, Wu Yajun, President of Longhu group, once said, "don't take market as a capability". Last year, Mr Huang also said, "these ten or twenty years have been developing too fast, more of the dividends of China's economic development, not our ability to do more, but also by stars and professional managers."

Since 2019, regulators have repeatedly stressed that "no real estate as a means to stimulate the economy in the short term", "housing is not speculation" has also been repeatedly mentioned. Market regulation will not be fundamentally loose, and the market has entered the downstream channel, which has become the consensus of the industry.

Shanghai Yi Ju Research Institute pointed out that as of the first half of 2019, the median of net interest rates and net income of 172 listed housing companies were 12.2% and 10.4%, respectively, which were significantly lower than those of the same period in 2018 (14.1% and 11.2%). The agency believes that in the period of normalization of policy regulation and the continuous squeezing of profit margins of Housing enterprises, the realization of corporate earnings expectations still faces some objective pressure.

In the long run, the profit margins of the real estate industry will return to the level of manufacturing industry, according to Beijing housing prices. In the future, while continuing to optimize the management structure, the behavior of layoffs, salary cuts and other crowded talents will also be concentrated.

According to the twenty-first Century economic report, in recent years, the salaries of many people in real estate industry have not improved significantly, and even the proportion of pay cuts and demotions has increased.

Moreover, the tolerance of Housing enterprises to internal corruption has also declined rapidly. According to incomplete statistics, in 2019, COFCO, Ya Ju Le, long Shi, Bao Li, Rong Chong, Wanda, Fosun, Mei real estate, Jinke, new China Union at least ten Housing enterprises will be anti corruption action open, more than 30 people involved in the case. In last year's housing management change, this occupies a considerable proportion.