The Research On The Implementation Effect Of Project Follow-up Investment System Of Vanke

With the continuous development of the market economy,enterprises are facing increasingly fierce competition for human resources.Therefore,how to develop more effective talent incentive strategies and form a community of interests between talents and the company is a problem worthy of enterprises’ consideration.From the industry characteristics,development stage of enterprise,make effective incentive system is the focus of the enterprises to retain talent.As a staff motivation,project follow-up investment system has become a hot spot,it implements the company and employees form community of interests,innovation incentive mode,it is an incentive and constraint mechanism,on the one hand,it improves the staff enthusiasm,on the other hand it pay attention to the direction and the company’s long-term development.In 2014,China’s real estate enterprises were in a period of struggle,and it was also a key moment for SHENZHEN Vanke co.,LTD.As a leading enterprise in the real estate industry,Vanke took the lead in implementing the project follow-up investment system,providing certain reference for listed companies to formulate the project follow-up investment system.This paper first explains the background,research significance and methods of this paper,and on the basis of reviewing and sorting out the existing research,a brief summary of the project follow-up system is made: the project follow-up system is to achieve profit sharing and risk sharing between employees and the company by linking project interests with employees’ interests.The Incentive theory,Request-proxy theory and theory of Human Capital related to the system are expounded.Thirdly,through the analysis of Vanke’s daily operation,the paper introduces the exploration process of Vanke’s employee incentive system,and tries to summarize the deficiencies of the previous two incentive systems: the former two incentive effects are not very ideal,some financial indicators of the company reflect its lack of growth momentum,the ownership structure is highly dispersed for so long,etc.In this context,Vanke implemented the project follow-up investment system to solve or alleviate the above problems.This paper sorted out the specific implementation methods of the system.In the part of case analysis,this paper mainly adopts the method of combining financial index and non-financial index to study the effect of implementing the project follow-up investment system.In terms of financial index,it mainly adopts the method of evaluating enterprise value through vertical self-analysis,horizontal comparative analysis with poly real estate and free cash flow model.Non-financial indicators are evaluated from three aspects:operation,customers and employees.This paper comes to the conclusion that,Project follow-up investment system has unique advantages in enhancing enterprise value,enabling enterprises to achieve long-term sustainable development.Inspired Vanke’s management team and retained core talents;Relieve the pressure of equity diversification;Under the certain rationality of project follow-up investment system,it is also affected by some internal and external factors.The implementation of equity incentive system is closely related to external stability and enterprise internal control.In addition,this paper summarizes its experience,and summarizes the system of Vanke and other real estate enterprises and the inspiration for the future outlook.