Annual Survey Reveals Rising Compensation, Growth Potential, & Office Culture Driving Decisions in Commercial Real Estate Hiring.
Financial analysts in today’s market are commanding higher salaries, increased opportunities for professional growth, and a strong office culture according to new data from leading real estate executive search firm RETS Associates.
The firm, which has successfully placed more than 3,000 candidates in key real estate positions, has announced the results of its annual Financial Analyst Survey, revealing that financial analyst salaries have increased a whopping 29% in the past six years (from 2013 to 2019).
“Today’s real estate companies are in a war for talent, making insights like these more important than ever,” says Jana Turner, Principal of RETS Associates. “Commercial real estate executives and managers are increasingly taking notice of compensation, culture, and growth trends, and in many cases, are actively changing strategies to ensure they are able to hire and retain the very best talent available.”
This year’s survey revealed a 7.2% increase in analyst salaries from 2018 to 2019. Survey respondents also proved that while money matters, it is not the only consideration when accepting a new position. Consistent with data collected by RETS in 2016, 2017, and 2018, respondents reported that growth potential, office culture and the nature of their work were also major contributing factors when considering a career move.
RETS, which recruits for entry to senior executive positions, focuses on analyst-level data as a key indicator into the health and strength of the hiring market, according to RETS’ Principal Kent Elliott.
“An analyst position is the starting point for many CRE professionals across the globe, making this demographic an important one for today’s executives and hiring managers to watch,” says Elliott.
Top-line results from RETS’ 2019 Survey, which were analyzed by Chief Economist/Strategist/Researcher Jeffrey Havsy of Eigen 10 Advisors, include:
Base Salaries Increase 7.2% Year-Over-Year
- Base salaries increased 7.2%, rising from $101,337 in 2018 to $108,659 in 2019
- Base salaries continue to account for 78% of total compensation, consistent with 2018 data. Overall, average total compensation rose from $129,992 to $139,407.
Higher Education Supports 11.1% Year-Over-Year Increase
- Education levels also support higher salary growth. Base pay among survey participants with an MBA grew 11.1% year over year, while those with an MRED or MSRE degree increased 4.5% from 2018 to 2019.
- Compensation for survey respondents with bachelor’s degrees rose 5.4% from 2018 to 2019.
Compensation Growth Highest Among Senior Associates
- While survey respondents at all levels reported an increase in compensation, the most prominent increase was among Senior Associates, whose compensation rose 16.6% year over year.
Compensation and Growth Potential Still Lead Candidate Decisions
- Compensation was the most important factor for survey respondents when considering a job offer, followed closely by growth potential and dissatisfaction with their current work.
- Other key factors in seeking new opportunities include office culture, job title, and geography.
- Survey respondents cared the least about the brand name of the firm.
RETS Associates is one of the nation’s leading real estate executive search firms, specializing in connecting today’s companies with valuable talent to deliver long-term profitability. With a proprietary database of more than 50,000 experienced candidates, RETS helps global, national, and regional real estate and construction companies strategically recruit and hire both permanent and interim employees. Learn more at www.retsusa.com.