‘A lot more to do’: real estate tackles the gender pay gap
Real estate leaders have acknowledged the hard work ahead in addressing gender pay imbalances in the sector, even as the gap narrows in the latest figures.
Data filed with the government showed a gradual improvement industry-wide in both pay and bonus parity. Across 168 businesses that registered their operation primarily within the real estate sector, the average mean gender pay gap was 12.6%, an improvement on 14.3% recorded across 154 real estate companies last year, and almost on par with the 12.1% average calculated across more than 15,000 companies that submitted data this year.
Estates Gazette’s analysis of figures from 19 high-profile real estate firms found the average hourly gender pay gap has narrowed to 26.2% from 27.8% year-on-year. Meanwhile, the average bonus pay gap shrank to 54.9% from 57.5%.
Real estate leaders have acknowledged the hard work ahead in addressing gender pay imbalances in the sector, even as the gap narrows in the latest figures.
Data filed with the government showed a gradual improvement industry-wide in both pay and bonus parity. Across 168 businesses that registered their operation primarily within the real estate sector, the average mean gender pay gap was 12.6%, an improvement on 14.3% recorded across 154 real estate companies last year, and almost on par with the 12.1% average calculated across more than 15,000 companies that submitted data this year.
Estates Gazette’s analysis of figures from 19 high-profile real estate firms found the average hourly gender pay gap has narrowed to 26.2% from 27.8% year-on-year. Meanwhile, the average bonus pay gap shrank to 54.9% from 57.5%.
Of those firms, seven reported a widening hourly gap year-on-year, with Newmark and Canary Wharf Group recording the largest moves. In terms of bonuses, British Land, Canary Wharf Group, Colliers, Greystar and Landsec all saw the gap widen.
Conversely, Avison Young, Cushman & Wakefield, Knight Frank and Grosvenor – the latter at a group level that will also include non-real estate employees – saw the greatest shrinkage in their average gender pay gap year-on-year, by 7, 6.5, 6.3 and 6 percentage points, respectively. The bonus pay gap narrowed the most at Cushman & Wakefield and Avison Young.
Encouraging progress
Nick Walkley, principal and UK president at Avison Young, said: “Our 2024 gender pay gap report shows progress to reduce the gap has been made, and while we are encouraged by this, we know we have a lot more to do. We are dedicated to equity, transparency and creating a fair workplace where everyone feels valued and respected.
“In 2023 we set up a dedicated staff working group and corresponding action plan. We continue to invest in this, to help us continue to improve through education, recruitment and by retaining the diverse range of skills, experience and expertise in our business that will all help us deliver the best for our clients.”
Of the firms analysed by Estates Gazette, the Crown Estate has the smallest wage and bonus pay gaps, at 7.9% and 19%, respectively.
“We have exceeded our gender target,” the Crown Estate said in its report. “In 2023 we introduced our three-year diversity, equity and inclusion targets focused on ethnicity, gender and disability. Alongside this, we have created a DEI action plan to focus on practical goals we can implement. We continue to drive positive change through diverse recruitment opportunities and a focus on talent management and progression to promote women into more senior roles.”
At Carter Jonas, where the mean gender pay gap has narrowed from 30.5% in 2017 to 24.6% now, head of human resources Claire Matthews said: “While this progress is encouraging, there is still significant work to be done, especially compared with the national gender pay gap. We remain committed to investing in initiatives aimed at reducing this gap and are actively collaborating with our women’s network to accelerate change.”
Who’s at the helm?
A higher proportion of men holding senior roles in the sector is making pay and bonus gaps stark, said firms. Newmark said in its report: “As we grow as a business, we need to focus more proactively on attracting and recruiting a more diverse candidate.”
Across the 19 firms analysed by Estates Gazette, some 61.8% of positions in the lower pay quartile are held by women, compared with 31.4% in the upper quartile. Last year, the figures among the same companies stood at 62% and 29.1%, respectively.
Canary Wharf Group was the only company analysed by Estates Gazette in which women hold more than 50% in senior positions. Colliers is among those facing the greatest challenge on this front, with just 15% of positions in the upper pay quartile held by women.
Karen Bowes, group chief people officer, said: “We still face two long-standing challenges: first, women are under-represented in the most senior roles and second, they are also under-represented in revenue-driving roles.
“We are addressing this by attracting exceptional talent from a diversity of backgrounds and building an inclusive culture where all colleagues can grow and thrive.”
Sean Greathead, head of people and talent at MAPP, said: “A business that doesn’t make everyone feel both welcome and wanted is just shutting itself off from benefiting from the best talent out there.”
