The old teacher is marginalized the new Oriental is leaving the tide, wants the transformation to be difficult to break the ice

Recently, YY claimed to invest 1 billion yuan to do online education, and open a free TOEFL, IELTS training courses, this move is clearly moving the new Oriental cheese.

As the most well-known English training institutions, the new oriental at this time not up. Mr Yu has urgently deployed online education and has taken steps to retain outstanding teachers.

In the past 2 years, the new Oriental frequent turnover, more than 10 years old teachers leave is not uncommon, and with the departure of these teachers, new Oriental in the previous accumulation of influence is gradually eroded.

The old teachers are marginalized and are leaving the tide

Not long ago, 100 education in charge of the Liu Army openly preach to the new east to dig 2000 teachers, although the alleged propaganda ingredients, but in fact, in 100 education before the establishment of the new Oriental teacher has appeared a wave of turnover.

According to the financial weekly reporter, New Oriental recently concentrated on a group of teachers who have worked in new Oriental for more than 10 years.

December 2013, Beijing New Oriental School 3 TOEFL Old teachers left, now more than 10 years of TOEFL teaching teachers only one.

Insiders told reporters that the new Oriental's main business income more than half of the focus on the Beijing area, including TOEFL and IELTS accounted for the entire course about half. It can be seen that the 3 teacher's departure is more drastic personnel changes.

In addition, last year Shanghai New Oriental also suffered a collective exodus of teachers, and the GRE master Chen also announced that the end of May will formally leave.

New Oriental officials said that the departure of individual teachers will not affect the new Oriental. At present, the new Oriental has a total of 20,000 staff.

However, former New Oriental teacher Sou that if a large number of teachers leave will bring a certain impact on the new Oriental. "Some teachers take away a lot of influence, and these teachers began to do small and medium-sized training institutions, this for the new Oriental one-on-one training class impact is quite large." ”

The new Oriental teachers frequently leave the phenomenon, in fact, is emerging from the new Oriental listing slowly.

New Oriental was established in 1993 and listed on the United States NYSE on September 7, 2006.

However, the spirited new Oriental did not expect this listing will become a stumbling block in the new Oriental. Mr Yu has since made more than one public mention of regret listing.

In order to ensure the company's annual performance growth, the new Oriental has to save costs.

Sou to reporters: "After the listing, the new Oriental almost stopped rising wages, I have been almost seven or eight years has not been paid." Ten years ago two classes are 2000 yuan, now starting salary is six months up 50 yuan, and rose two or three times. ”

In addition, the marginalization of old teachers is also the embarrassment facing the new Oriental. It is understood that the old teacher with the increase in seniority, although the class pay higher than the new, but the class is particularly small, and the new teacher paid particularly low, more classes, pay and income is obviously wrong, resulting in many teachers dissatisfaction.

The listing did not bring tangible benefits to the new Oriental, but accelerated the flow of people in the new east.

Once Chinese partners have parted ways, Mr Yu, Xiaoping, Wang Qiang's new Oriental "troika", now only left Mr Yu a person in the stick. In January this year, Mr Yu's right-hand and new Oriental Group CEO Chen Xiangdong also resigned.

In the future, how to retain the hearts of the new Oriental will be a headache for Mr Yu, employee incentive mechanism reform is imperative.

Tied up on the line by the group system

The new Oriental online education actually does earlier than YY. New Oriental Online as early as 2000 has been online, it is understood that the 2013 new Oriental from online education income of 200 million yuan, accounted for 3%, currently has 200,000 paid users.

In comparison, YY's main income comes from two sections of entertainment and games, which actually come from less income from the education sector. This year, a special education channel--100 Education Network was set up.

From the revenue point of view, the new Oriental education business income than YY, but from the product operation and innovation, the new Oriental online is obviously slow step.

New Oriental Online CEO Chang earlier in the media interview also said: "New Oriental Education Group, although early 10 years ago, attention to online education, but only to stay in the strategic focus, the actual investment is less." ”

such as the early investment in a large return to small courses, the management of various branches do not attach importance.

The industry insiders on this deep feeling: "The new Oriental Group system is more rigid, as a teacher to record, but also need to get the approval of the department leaders." The original high-level is to want everyone can record, but the actual operation of dissent is very large, to the final implementation of only 20%-30%. ”

In contrast, YY has the internet gene, more flexible. YY does not have a bloated hierarchy, in the input is less, mainly to provide platform and technical support, the teacher only need to apply for the commencement.

Chang recently also said that the new Oriental online has also made a corresponding adjustment, will be from a profit-oriented to user-oriented accumulation, and will invest 5-10 times in the past year of money in online education.

Mr Yu is well aware that the key to the success of the new Oriental online education is whether he can see clearly the changes that the Internet has brought to education.

Mr Yu, who is over 50, is also taking the baptism of Internet thinking in a step-by-step way, it in YY free strategy launched after 5 aspects of deployment, one of which is "do a good job of yy such a strategic deployment, let the new Oriental in some products online free operation."

In addition, the new Oriental has recently been on the ship, Tencent, the news that Tencent will jointly set up with the new Oriental Online education company, and Tencent posted CEO.

Offline innovation.

At the same time, the new Oriental Line education and training business day is not easy.

According to New Oriental's latest release of the 2014 second quarter earnings, net profit of 4.3 million U.S. dollars, a year ago a sharp increase in the same period last year, a net loss of 15.8 million U.S. dollars.

The results showed that the new Oriental, in order to save money, turned a profit, the second quarter of this year, last year, a reduction of 33 teaching points.

Early last year, New Oriental president and CFO Xie said it would close 15 to 25 poor-earning teaching points and lay off 1000 to 1500 people within 4 months.

In addition, the offline business appears weak is also an indisputable fact.

As early as the second quarter of 2012 financial results disclosed, the new Oriental said that the company according to market needs in the reduction of the capacity of large classes, the two-year study students to reduce 7%, and revenue year-on-year growth of 22%.

This means that the enrollment of students in the study business is declining, and revenue is mainly by increasing the unit price to achieve growth.

Weak performance, the closure of a number of teaching points from the fierce training market competition, on the one hand may be the new Oriental and the performance of the weak.

True, new Oriental brand influence is understandable, but in curriculum innovation, mechanism innovation but dare not move.

Xiaoping has questioned where new Oriental innovation products are going in public. Once the "Golden brand" of the IELTS course was part of the global IELTS, and the discipline of the project has not done the study and thinking and learning, professional English, compared to Wall Street English does not have a big advantage.

"New Oriental is relatively poor in innovation. Often in the whole market to see there is such a training model and training courses to do a special fire, and then use their own huge resources to do, can not do the industry first, can only do second, third, but there is a new Oriental brand support, the influence is quite large. Today, the new Oriental division of the first line of business is not as much as before, only the North American TOEFL test is the first, and is now shrinking. "said the industry insiders on the financial weekly reporter.