Attracting talent and the future of real estate

COMMENT: Like all sectors, real estate is marching into a war for talent. The future of the sector will be largely driven by our ability to attract high quality people into real estate jobs. Against the backdrop of record employment levels and job vacancies, we are going to have to work really hard to achieve this. I was recently invited to speak to a group of undergraduates about the property sector and why it is a great place to work. The process highlighted all the reasons why we are well placed to attract new talent – but it also highlighted a key missing ingredient. Changing priorities Different generations are often described as completely different beasts, from alternate universes. I believe that the differences between generations are often overstated, but there seems little doubt that there are some challenges that we need to address to continue to attract people into the sector. Our future employees of course want to earn money. But the ability to reduce the impact we are all having on the planet, to benefit society and to have stability – especially after the pandemic – are increasingly important. Against this backdrop, where better to meet these needs than to work in real estate? It is well documented that real estate has a huge impact on the planet. According to the UN Environment Programme, the sector is responsible for 30% of greenhouse emissions and 40% of energy use. So, working in the property sector provides the perfect platform for employees to play a role in significantly reducing the negative impact of humans on the planet. For those looking for stability, it is also hard to find a more stable sector. Of course, there are cyclical ups and downs, but the demand for property has been around for centuries and is hardly about to disappear. In fact, quite the opposite, with the rapid population growth that the world is seeing. And not only is property relevant to all of society, but it also has an increasingly important role in affecting wellbeing and happiness. However, it’s not all rosy. The sector needs to keep adapting to attract this future workforce. But this isn’t just about the next generation of what has come before – employers need to appeal to a much more diverse and mobile workforce, and keep them engaged as employee attention spans and patience declines. Visible impact A job for life has not been the norm for a while now, but employees are even less likely to stay in a role if they can’t see the impact that they are having, especially as many of their skills will be highly transferable between roles, companies and sectors. According to a 2022 Willis Towers Watson survey, 44% of employees are “job seekers”. So, what is the solution? The sector’s adoption of technology is going to be a crucial factor in competing for and retaining the best talent in the years to come. First, we simply cannot expect someone whose life is run by Alexa, Uber, Deliveroo and TikTok to work with a pen and paper as soon as they enter the office. According to a 2022 survey by Job Description Library, 73% of millennials found their last position directly through a social media platform. We have made great strides in recent years in the adoption of technology, but we must accelerate if we are to attract and retain the talent of the future. Old-fashioned companies do not attract modern employees. Second, knowing that we have a positive impact on the planet and society is not enough – we need to be able to measure and demonstrate it, and back this up with robust data. Today, while we may be good at collecting and using data about the size of a building or the terms of a lease, we are a long way from being able to demonstrate the impact of buildings on the environment or people. As we compete to attract and retain talent, the real estate sector ticks many of the boxes on an employee’s wish list. But without an acceleration in the adoption of technology, then we might just lose out to other industries. Dan Hughes is founder of Alpha Property Insight Image © Anna Shvets/Pexels