Real estate sector 'needs to step up the pace on gender equality'

This was one of the key conclusions of a seminar held last week by the Urban Land Institute and hosted by M&G Real Estate at their London headquarters. Entitled 'Moving on: from gender diversity to gender equality’, the event drew a panel of expert speakers from the real estate sector as well as the world of insurance, accounting, recruitment and consulting.

As Alex Jeffrey, CEO of M&G Real Estate, pointed out, the shift from ‘why’ to ‘how’ has already taken place, as there is enough evidence that men and women contribute equally to a company’s bottom line. The question now is ‘how to implement equality-supportive corporate strategies, and create a culture that respects and values differences, in the knowledge that better decision-making comes from diversity’.

Listed companies perform better
Data from Grant Thornton indicate that only 18% of board members in the real estate sector are women, although listed companies perform slightly better at 22%. Martina Malone, head of capital relations and capital raising at Prologis Europe, pointed out that ‘research consistently shows that truly diverse companies deliver better financial results, drive innovation and achieve better employee retention, so gender equality is a business issue, not a women’s issue’.

Prologis, along with other companies like CBRE and JLL, is leading by example, Malone said, with a strategy of increasing the number of women at all levels and have strong representation in senior positions. It aims to build a supportive culture and employ female role models in the recruitment process, develop women’s talents and create a clear path to the top. The company is constantly tracking performance and measuring success, as ‘execution, not ideas, are what set you apart from the rest’.

'When women thrive, businesses thrive'
Robert Baker, senior partner and global client director at Mercer, agreed that the focus now is on ‘driving an effective gender strategy and, in order to do this, companies must gather data and have an idea of what is happening inside their organisations so they can take targeted action. There is no doubt that when women thrive, businesses thrive.’

Mercer’s research shows that current hiring, promotion and retention rates will not secure gender equality by 2025 and European companies are failing to build pipelines of female talent. Furthermore, gender equality is not supported by systemic practices such as an increased focus on hiring and promoting women into executive ranks.

Baker put forward the ‘6 Ps strategy’, which at the individual level requires passion, personal involvement and perseverance, while at the corporate level it needs proof or the accurate gathering of data, processes in place and programmes to support it.

Inclusive strategies
Real estate faces its own challenges, as ‘there are many smaller companies in the sector without the means to target the issue and change the dynamics,’ said Elizabeth Teo-Pennell, managing director, business development and client relations Europe at Pramerica Real Estate Investors.

Young female graduates often begin their careers with no sense or experience of discrimination, but 'within six months they start to lose confidence,’ said Barbara Schonhofer, CEO, global executive search at The Jacobson Group.

The panel of experts, moderated by PropertyEU Editor-in-Chief Judi Seebus, agreed that there are positive signs that executives and top managers in the sector have got the message and are willing to implement truly inclusive strategies. Young employees are equally enthusiastic.

The real problem seems to be middle management where, according to Malone, ‘the levels of conscious and unconscious bias are highest’. But, she added, ‘I am very positive things will change quickly in our sector, even if not as quickly as we would like.’