Last resort: Housing companies need to be decent
This is the 334th article in this column.Now more than ever, real estate companies need respectability, but not the kind that lets bullets fly.For a long time, the reputation of housing enterprises seems to be unable to compare with hemp bandits, engaged in the “money returned by the gentry, the people’s 37 cents” business, and then may not be able to get three, in this case, the role of the macro economy is not easy to speak, carry the pot man + chamber pot is not wave of false reputation.But industry reputation or as a business to investors and capital market impression, do not want to be poor, if an enterprise scale, revenue, no two good limelight, poor one lu in the end, when in fact there is no credit, real through wind and rain of the enterprise has a sound internal style, like gives the impression of a person.To tell the truth, I think the real reputation and credit is not the credit rating of S&P, Fitch and Moody’s at all, but the main impression of everyone when it comes to this company.In real estate, two aspects are the most important, one is the product, the other is the staff.For products, we think of Greentown, and for employees, we look at Binjiang Real Estate (of course, the products are also very good reputation). In 2021, when all housing enterprises are facing difficulties, these two enterprises have overfulfilled the sales performance indicators.I don’t want to write about any particular company today, I’m just going to give you an example of layoffs.With the news of layoffs, salary cuts and long holidays since 2021, the Chinese New Year holiday has probably never been so long for property developers.Many friends from the end of the performance sprint stage to the Spring Festival after the Preparation of Indian Summer, originally is the time of intense in previous years, now are on vacation.We all know that this holiday is inevitable, and no one understands the industry and the company better than the workers. The brutal stories of the past six months have hardened your new skills to a point of tolerance.Layoff and cost reduction is the second half of real estate, or the choice of the black iron era, to the management to profit, but have to have to, the enterprise’s approach to people and things at this moment is the perspective mirror of the essence of the enterprise.A head room enterprise regional company merger, layoffs 30~40%, but not in accordance with the statutory compensation N+1, forced interviews;An east China brand housing enterprise packaging layoffs into a long vacation, only to the local minimum salary and no clear time to resume work to force them to go;A listed real estate company headquartered in Beijing, among the old employees to sign a labor agreement to replace the signing of the company’s main body, when the layoffs only in accordance with the last working hours to do compensation.A TOP30 housing enterprise through forced transfer, without formal reasons to lower performance and separate people, more bitter is management trainees less than a year to almost all fired, young people just graduated just a few days lost the identity and job of fresh graduates.A listed enterprise apportion the staff to buy a house character, to be assessed by dissatisfaction, but after buying the staff room, the staff will face a round of layoffs, not to buy the house can be spared….Such examples are friends in the industry to talk about the real situation, has been countless.Why? This used to be an industry with great attitude and pride of capital. The incentive for practitioners to cash in is not only material wealth, but also the sense of achievement of completing one project after another.It can be said that for every real estate developer, the sense of achievement supports everyone in the perennial high load, other industries unimaginable pressure is still desperately.Maybe it is a little narrow to say that it cannot get rid of the influence of the bonus period, nor can it jump out of the mess when the market is against the trend. However, no matter the real estate enterprises or practitioners, there are always outstanding ones in the market competition, who have their own strength and dedication to do the foundation.A field underpinned by many values should not be unseemly rattled, except by skinny-swimmers as the tide recedes.At this time to see an enterprise, the attitude and practice of layoffs, at least to compliance, how to how, although unable to retain the team, but to have the right to say goodbye or end.Canon’s example is a contrast to the closure of Canon’s Zhuhai factory, and the compensation for employees has aroused heated discussion. It is even called “malicious compensation”. In fact, as an enterprise operating in China, it provides certain care for employees in accordance with the provisions of China’s labor law, but it is considered to have set too high a threshold for layoffs.The first compensation scheme offered by Canon is called “economic compensation”, which is conventional N+1.Labor law stipulates the legal standard, the employee is mean monthly salary of 3 times higher than the average wage of local society, in terms of three times the amount as a cap, and calculate length of service of the highest fixed number of year for 12 years, however, the Canon is not the legal limit of the calculation in accordance with the labor law, but not limit to, that is to say, if the Canon zhuhai employee’s average monthly wage is higher than social average wages more than 3 times,The payment shall be based on the actual average salary, and there is no upper limit of 12 years for the calculation of length of service, which can be calculated according to the actual length of service.The second is the “special gift of gold”, belongs to the Japanese to common practice, extend standard is higher than the statutory “economic compensation”, this item according to the length of service, fall into three coefficient of 1.0, 1.2, 1.3, and the compensation standard for “starting from January 1, 2008 the company length of service x” average monthly salary multiplied by the coefficient of each again, the compensation benefit is self-evident,Even if you have been working for less than a year, you can get an average monthly salary of 14 months.The third category is employment support, which provides a minimum of one month’s average wage and a maximum of seven months ‘average wage.This apparently gives employees enough money to cover their job-hunting expenses.The fourth item is the corporate slogan of Canon, which is “Touching is always here”. The amount of bonus will be awarded in 2022 with reference to the standard of special gift in the next period of 2021.I have never made any comments on Japanese companies, but look at Canon’s practices, the practices of Domestic real estate companies are disgusting.Many enterprises are also the world’s top 500, or the domestic top 500, but the practice of layoffs we did not see the human touch and the pattern of the enterprise, but a sense of panic and collapse superimposed.In the future, some can’t carry the past, and some can survive to the bright future. However, the rest of the industry is not so simple as the enterprise. Only the fearless and responsible process can bring the calm and solid confidence in the future.Do real estate manpower friends said a wry smile: now the human resources department of real estate companies is all the wicked, in accordance with the established framework of the company, unconditional implementation of layoffs, cut colleagues cut themselves, but also often not enough reasonable compensation and departure procedures.This kind of blow is very big for a professional manager. This kind of questioning and inner dishonor directly knocked down many people’s inner sense of accomplishment.Even if the past, later this is the heart of the stumbling block, the total feeling is to pull out of the bottom, the foot of the cliff collapse in general.Wish you all a smooth journey in the New Year!More columns are welcome to leave a comment.