Perception often leads to reality, so in the final weeks of December, SelectLeaders conduct its annual industry-wide survey, in cooperation with the 10 premier real estate professional associations and real estate news sites whose career centers are powered by SelectLeaders.
The following is an excerpt from the report. To read the full study, visit the NAIOP Career Center.
Will the Overall Positive Outlook for the U.S. Economy in 2017 Force Real Estate into a Bidding War for Talent?
Of the 71 percent of respondents who reported their real estate company’s revenue grew in 2016, 41 percent reported their real estate company’s revenue grew by 10 percent or more, compared to 2015. Yet, 50 percent of companies reported their companies did not hire more people, while 22 percent reported that their companies decreased the number of people in their organization in 2016. If the U.S. economy heats up to the degree our industry-wide survey predicts, real estate’s need for more qualified talent could be a driving force in increasing compensation even higher in 2017.
However, 2016 may be an aberration. Looking back to 2015, 88 percent of respondents reported their company’s hiring would increase or remain the same as 2014. And they were right: real estate hiring reached record levels in 2014 and 2015, after a 5-year hiatus from 2008 to 2013 as our industry waited to recover from the global financial crisis. By 2016, most companies had recently hired and were waiting to see what the election would bring.
Compensation and the War for Talent
Sixty percent reported higher salaries and/or commissions in 2016, plus a whopping 69 percent of our respondents had received a bonus the previous year. Seventy percent expect their total compensation to increase in 2017.
In the war for talent, 14 percent of our respondents reported a 20 percent increase in compensation, while another 15 percent received an increase of more than 10 percent. The price for top talent in 2017 could push the needle even higher.
The 2017 SelectLeaders Network Hiring Trends Survey Report surveyed a rich mix of real estate professionals: candidates employers, principals, top-line managers and hr executives were surveyed and also shared their insights on the real estate job market and the prospects for 2017.
Susan M. Phillips is the CEO of SelectLeaders, LLC, which powers the career centers for 12 premier real estate industry associations (whose members control or direct 90 percent of commercial real estate) and offers unequalled access to the real estate community.