With a new administration and a “pro-growth” strategy in place, the CRE industry is anticipated to continue expansion and growth in 2017. This is evident already in the first quarter of 2017, as RETS Associates sees robust hiring similar to that of 2016. Firms are searching for development, acquisition, asset management and project/construction management roles. Also, all levels of property management are still in high demand, based on buildings constantly in play for sale.
It is estimated that the unemployment rate in the CRE industry is under 2% in many markets. This scenario has created a very competitive talent environment, and employers must be prepared to STEP UP for key candidates with a compensation package that is at a minimum 20%-30% more than the candidate’s current package. Today, candidates appear happier with their current employer and are satisfied in their roles. They want potential employers to “SHOW ME THE MONEY” relative to base, bonus, medical benefits and long-term compensation. Offering a top candidate some form of equity or other defined long-term incentive can be a game breaker in securing “A” talent. Finally, having a well thought-out succession plan for a candidate can be a differentiator in getting that top candidate.
In summary, employers must remain prepared to vie for top talent and bring their “A” game to the recruitment process! As noted in 2016, firms must develop a well planned and defined hiring process which includes an efficient interview process, a possible social outing that could or could not include a significant other, a competitive offer letter with all terms completely defined with no TBDs and finally a thoughtful outboarding process. Remember, the first day at a new company sets the tone for the relationship going forward!
Finally, those “A” candidates often are “passive” candidates who do not respond to recruitment inquiries from the many online sites or to your firm’s posting. It takes a knowledgeable and professional firm that can put forth a full marketing effort and a creative plan to uncover, qualify, persuade and present those top candidates. RETS Associates is here to help you build your talent bench.