The traditional climb up the management ladder is increasingly losing its appeal in the German economy. Specialized recruitment consultancy IMMOcareer examines this trend in its 19-page labour market and industry analysis entitled 'Rethinking Leadership - When Career Becomes a Trap'. The study paints a picture of a sector in which rising demands are met with a noticeably declining willingness to take on leadership responsibilities.
According to an employee survey evaluated in the publication, only 14 per cent of employees without a managerial function can unreservedly envision such a career step. While 40 per cent would be prepared to do so under certain conditions, 43 per cent fundamentally reject management responsibility. The main reasons cited include a heavy workload at 77 per cent, extensive responsibility at 75 per cent, and poor work-life balance at 73 per cent. A lack of financial incentives was cited by 48 per cent of respondents. This poses substantial risks, particularly for the property industry, as 62.1 per cent of property management companies surveyed already consider themselves overburdened.
Equating technical expertise with personnel management
Julian, founder and real estate expert at IMMOcareer, warns against the practice of reflexively linking top operational performance to management roles. A distinguished asset manager, developer or property manager does not necessarily possess the qualities of a leader. Rewarding specialists exclusively through promotions risks losing indispensable experts without gaining competent leadership in return.
The issue is exacerbated by misaligned financial incentives. A model calculation in the analysis illustrates this using the example of a specialist with a previous annual income of 65,000 EUR for a 40-hour week: if remuneration increases to 80,000 EUR following a promotion to team lead, the gross annual salary rises by 23.1 per cent. However, if actual working hours increase to 50 hours per week, the calculated gross hourly wage decreases by 1.5 per cent.
Outlook for the working world through to 2030
Lara, founder and HR expert at IMMOcareer, calls for alternative progression paths in which professional excellence receives the same recognition and remuneration as personnel responsibility. For the period between 2027 and 2030, the study outlines three qualitative scenarios:
- —Worsening of the leadership crisis due to adherence to rigid hierarchies, leading to mismatched appointments, burnout, and an exodus of specialists.
- —Artificial intelligence as an accelerant: despite 96 per cent of property companies believing that AI will become business-critical within five years, the technology risks merely increasing performance pressure rather than providing relief.
- —Realignment of career models through parity between specialist and leadership tracks, flexible management structures, and the targeted use of automation for routine tasks.
The recruitment consultancy therefore calls for a structural change of direction. In the future, property companies must delineate leadership tasks more sharply from purely technical performance, through independent specialist career tracks, transparent remuneration models, defined decision-making powers, and effective operational relief.
