Focus shifts to attracting more diverse workforce
In Europe, women have made the most gains in climbing the corporate ladder.
According to the third edition of the biannual Global Real Estate DEI Survey, 96% of commercial real estate firms have diversity, equity and inclusion (DEI) strategies in place.
The percentage of commercial real estate firms adopting formal, documented, holistic DEI programmes has risen to 56.4%, an increase of 5% on the previous survey, which was conducted two years ago.
The survey, supported by 19 commercial real estate industry associations globally*, tracked DEI practices and employee demographics at 216 firms representing nearly 300,000 employees and $1.8 trillion of assets under management in different sectors and geographies.
The main takeaway from the survey is that, globally, commercial real estate firms are increasingly focused on attracting more underrepresented people to the industry, with 31.6% of firms saying the most impactful DEI policy in 2023 was creating scholarships and internships to increase diversity in candidate pools, up from just 18% of firms previously.
Providing DEI-related training is the second most impactful DEI policy. A quarter of firms say training has had the greatest impact on achieving DEI goals.
Politicisation of DEI
Nine out of 10 respondents address race/ethnicity/nationality within their DEI programmes, followed by gender, sexual orientation and age. More firms than before are also tracking family status in 2023, and the tracking of mental health conditions has also increased.
One of the important issues that came up in discussion with the report’s participants is DEI “fatigue” – some leaders and companies are getting tired of talking about and integrating such policies. However, comments from the organisations reinforced the business imperative for DEI strategies, as they were shown to result in higher-performing companies.
“While the anti-DEI agenda is more prevalent in the US, it is something to keep an eye on in Europe. Political uncertainty is on the cards.”
Simon Chinn, ULI Europe
The other risk that came up in discussion is the politicisation of DEI. This is the idea that some places, particularly in the US, are becoming increasingly anti-DEI.
“While the anti-DEI agenda and politicisation of the subject are more prevalent in the US context, it is something to keep a careful, watchful eye on in the European context, particularly in the year ahead, where many countries will be having significant elections,” said Simon Chinn, vice-president for research and advisory services at the Urban Land Institute (ULI) Europe. “Political uncertainty is on the cards.”
Ethnic minority board level roles increase
In terms of employee demographics, headline data from the survey shows the representation of women in commercial real estate ranged from 39.8% to 45.6% across the four regions surveyed (Asia-Pacific, Europe, Canada and the US).
In the US, 41.4% of full-time employees are women and almost 30% of employees are from under-represented racial or ethnic groups. Ethnic minorities now hold 15% of board director roles, up from 9%.
In the Asia-Pacific region, 44.8% of employees are women and firms have been actively promoting more women to executive management roles and hiring them to mid-level roles in 2023. Similar to other regions, the proportion of women declines as one moves up the organisational hierarchy. Women fill 52% of roles at the junior level, 41.9% at mid-level and 17.3% at board level.
In Europe, 39.8% of all commercial real estate roles are held by women, who made the most gains in 2023 in climbing the ladder. Over a quarter (25.4%) of executive management roles are held by women, a sharp increase from the 12.9% recorded in the last survey.
Senior roles for women
European firms also stood out for their active hiring and promotion of women to the most senior roles in their organisations, the survey found. Over four in 10 promotions among executive managers were of women, which is the highest rate of promotions for women across all levels. However, at the mid-level, only three in 10 promotions were awarded to women.
The percentage of women at the overall company level remained steady at 39%. “DEI surveys in the listed real estate sector are vital tools for assessing the progress and identifying the challenges still faced in fostering a diverse and inclusive environment,” said Dominique Moerenhout, chief executive of EPRA.
“Europe has made great progress in embedding DEI in real estate, but there remains much work to be done. By regularly examining our methods and policies, we ensure that our industry not only mirrors the diverse communities we serve, but also sets a benchmark in creating equitable and inclusive work environments.
“Together, we are committed to fostering a more diverse and inclusive real estate sector.”
* The Global Real Estate DEI Survey is conducted in partnership with 19 commercial real estate industry associations and Ferguson Partners. The associations include AFIRE, AIA, APREA, AREF, BOMA, BPF, CFMA, CoreNet Global, CREFC, EPRA, NAIOP, NAREIM, NCREIF, OSCRE, PFA, PREA, RICS, REALPAC and ULI.
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