Real Estate Predictions 2021 - Gaming the commercial real estate talent conundrum Talent strategy in a post-pandemic world - Deloitte
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Real Estate Predictions 2021 Gaming the commercial real estate talent conundrum Talent strategy in a post-pandemic world
Gaming the commercial real estate talent conundrum | Real Estate Predictions 2021 2
Gaming the commercial real estate talent conundrum | Real Estate Predictions 2021
The COVID-19 pandemic has disrupted human connections, which are at the heart of
the commercial real estate (CRE) business. Leaders in all industries were challenged
to digitalize many aspects of work while shifting and engaging employees in that now-
virtualized environment. Companies had to provide the infrastructure that would
enable employees to work effectively from home, while prioritizing health and safety.
Looking ahead, what does this tell us about the future of work? How can we prepare
for the challenges of talent strategy in real estate?
One implication is that the ability to customer service. Pre-pandemic, some haves” across all construction and general
succeed in the post-pandemic world will be CRE companies were continuing to lag management job openings. Only risk
hampered in the near term by employee other industries in their adoption of certain management, and marketing and CRM-
concerns about returning to work. This technologies and recruitment of tech-savvy related job postings required advanced
was acknowledged by more than 50% of talent. To support this, our analysis of tech skills in more than 10% of job postings.
respondents to the Deloitte Center for skills demand in the United States during
Financial Services’ Global Outlook Survey the 2014-2019 period revealed a higher The focus on traditional skills was pervasive
2020. and sustained demand for traditional across different CRE subsectors as well. For
skills. In contrast, there was muted growth instance, REITs looked for traditional sales
Traditional skills or advanced in demand for advanced technology and marketing skills in more than 60% of
technology skills? skills such as data analytics, software job openings. More than 50% of brokers’
The pandemic also highlighted challenges development, and cloud computing (see job listings sought finance and accounting
in a highly manual business model Figure 1). Additionally, our analysis of job (F&A) skills. However, advanced data
dominated by traditional job roles and openings for 500+ roles showed that analytics skills were sought by REITs and
skills in critical business areas including traditional skills were highlighted as “must brokers in only 1% and 3% of job listings,
accounting, building maintenance, and respectively.
Figure 1: CRE companies continue to demand traditional skills
Proportion of job openings demanding traditional and advanced tech skills
40%
35%
35%
30% 30%
30%
27%
26%
24% 25%
24%
25%
25% 22%
21% 24%
19%
18%
20%
17% 17%
15%
15%
10% Growing ‘skills demand gap’
10%
4% 4%
3% 3% 3% 4%
5%
1% 1% 1% 1% 1% 1%
0.3% 0.4%
0% 2014 2015 2016 2017 2018 2019
Traditional skill areas Finance & accounting Sales and marketing Property management
Advanced tech skill areas Data analytics and AI Software development Cloud computing
Source: LinkUp jobs data of US real estate companies; Deloitte Center for Financial Services analysis.
3
Gaming the commercial real estate talent conundrum | Real Estate Predictions 2021 Refreshing talent strategy is a growing roles, and skill requirements (Figure 2). CRE companies should consider the imperative Regionally, a higher proportion of European following actions to envision the future It is a growing imperative for CRE respondents (47%) are likely to do this, work and skill matrix and to facilitate the companies to digitalize business processes as compared to those in APAC (44%) recruitment of right-skilled talent: and refresh their talent strategy so as to and North America (32%). And only 36% not lag further behind. Of note, 41% of of the respondents acknowledge that 1. Redefining roles and skills survey respondents agree or strongly their organization is refreshing its talent/ 2. Modernizing recruiting approach agree that their company has accelerated recruitment strategy to shift to future 3. Creating alternate talent marketplaces efforts to use technology and tools technology and skills needs 4. Strengthening talent analytics in redefining business processes, job Figure 2: CRE companies’ urgency to redefine talent My company has accelerated redefining business processes, job roles, and skill requirements to include use of technology and tools Europe 2% 5% 17% 30% 29% 18% APAC 20% 18% 18% 35% 9% North America 7% 26% 34% 24% 9% Note: Responses might not add up to 100 Strongly disagree Disagree Neither agree nor disagree Agree due to rounding-off. Source: Deloitte Center for Financial Services’ Samwhat disagree Samwhat agree Strongly agree Global Outlook Survey 2020. Redefining roles and skill Workers in these roles will probably spend As responsibilities shift, the skills and To illustrate future work and job roles, we more time using technology while devoting qualifications needed for each role are have envisioned how modernizing work their expertise to conducting analyses and expected to evolve as well. At a minimum, could transform three positions: leasing strengthening tenant engagement. For each role would require technology or manager, valuation advisor, and accounting instance, , leasing managers could have analytics coursework such as a bachelor’s specialist. (See figure 3.) Analysis of three more time to focus on enhancing tenant or degree or certification in big data or real main job components—the automation client engagement if they used predictive estate analytics. Employees will also of certain tasks, emphasis on analyses analytics to help develop different lease need to excel at soft skills such as critical and insight generation, and tenant optimization strategies. And other tasks, thinking, problem solving, communication, engagement—reveals how CRE roles would such as invoicing, would be automated, presentation, and relationship building. likely need to evolve to meet future needs. freeing up even more time. 4
Gaming the commercial real estate talent conundrum | Real Estate Predictions 2021
Figure 3: Evolution of CRE roles
Automation of Emphasis on analyses Strengthening
Key components of the role
certain tasks and insight generation tenant/client engagement
Leasing Manager • Conduct predictive analytics and
Currents tasks
identify opportunities for lease
• Prepare and maintain physical lease optimization
contracts and invoices • Be the single point of contact for
(2020)
• Draw inisights from sensor data to
• Manually enter and extract lease tenants and enhance engagement
improve building management
data and manage on disparate and service
systems • Work with sales team to promote
properties and with legal team to vet
lease documents
• Create and maintain digital lease
Future tasks
contracts • Interpret and share lease
information and analysis on
(2023)
• Manage integrated digital lease data spreadsheets • Follow-up on rent payments with
using doud-based software tenants
• Share lease and market information
• Manage automated invoicing and with internal departments
lease data abstraction
Currents tasks (2020)
CRE Valuation • Conduct physical property
Advisor incpection and manually document • Gather data on traditional variables
the details from internal or third-party • Provide valuation report to clients, as
• Prepare valuation reports on paper databases per the agreed timeline
or spreadsheets • Perform competitive analysis • Manage regular communication with
• Fill back-up data like demographics, of rents, market value of similar clients and resolve queries
comparable properties etc. into properties etc.
report
• Conduct virtual inspection using
geospatial platforms and use mobile
Future tasks
apps for physical visits to centrally • Advise clients on asset strategy
• Utilize Al-assisted valuation models based on valuation forecasts
(2023)
store the data that combine and analyze sensor
• Automate generation of valuation and other alternative forms of • Perform risk modelling and advise
reports and autofill background data property and market data clients on wider risks associated with
a property
• Provide more reliable and real-time
valuation
• Collect and sort actual bills and
Accounting
Currents tasks
checks
Specialists • Enter daily ledger entries into the
• Provide relevant accounting
(2020)
system • Manually compare and analyze work
information to internal clients and
• Reconcile accounts and bank orders, invoices, and payments
stakeholders
statements
• Create recurring and ad-hoc reports
on standard timelines
Future tasks
• Enter digitized source documents of
bills and checks • Partner with internal clients and
• Leverage AI and data analytics to
(2023)
stakeholders on accounting
• Automate ledger entries, identify irregular expenses and raise
treatment and help forecasts
reconciliation, reporting, and flags for review
income, expenses, and budgets
compliance checks
• Enhanced efficiency and productivity
• Deeper and forward looking insights • Learning and exposure for
• Simplification of tasks employees
• Risk mitigation
Key benefits across roles • Improved data accuracy • Increased synergy within teams
• More nuanced, informed, and faster
• Additional time to perform higher decision-making • Stronger relationship with clients
order tasks
Source: Deloitte Center for Financial Services analysis.
5
Gaming the commercial real estate talent conundrum | Real Estate Predictions 2021
Modernizing recruiting approach For example, the alternate workforce, to help improve their use of digital tools
CRE organizations could use different consisting of e.g. contractors, freelancers, and absorb the business impact of
technologies during the recruitment and gig workers, is expanding rapidly digitalization.
process to attract the right-skilled talent. and could offer CRE organizations wider
Talent leaders can create digital content access to talent with advanced tech skills. Strengthening talent analytics
and use an array of social media channels For instance, the estimated number of CRE leaders are more likely to make sound
and job platforms to promote open self-employed workers in the United talent decisions if they are backed by
positions. For instance, Intuit uses virtual States in 2020 is 42 million3. Therefore, CRE data and analytics. Workforce analytics
reality technology to provide candidates companies should consider developing programs can also help CRE organizations
with a real-time experience of what it would a talent marketplace to include alternate attract and retain the right talent. For
be like to work at its campus, and to gain a workforce, and offer rotation programs, example, data analytics can be used to
deeper understanding of the organization’s stretch or voluntary assignments to improve resumé sourcing and screening
culture and ethos and its use of technology existing employees. to get candidates with the right fit, while
in day-to-day activities1. This is likely avoiding any selection bias. Data mining
intended to not only enhance a candidate’s For an internal talent marketplace, and pattern recognition can help talent
understanding of the company, but also its companies would need to look at job leaders to shortlist appropriate candidates,
brand. processes and identify intersection after matching their skills, experience,
opportunities where employees in one and background with job requirements 4.
For job postings, CRE organizations should department could work in another. They As shortlisted candidates go through the
use shorter descriptions and enable a may have to upskill or reskill existing interview process, more structured and
more mobile-friendly application process, employees, which could include revamping unstructured data would be generated
which would help candidates apply easily. of existing training curricula, redefining based on their responses and behaviors.
For shortlisted candidates, organizations expectations and skills, and developing CRE organizations can then combine this
could use automated interview scheduling effective measurement criteria. data and select candidates by predicting
solutions that are synced with interviewers’ their success in a role through machine
calendars, allowing candidates to find an CRE organizations could consider learning models, which leverage past
interview slot in real time2. developing internal knowledge-sharing data on hiring and success of candidates5.
and mentoring programs. Experienced Essentially, digital HR systems can help
Creating alternate talent marketplaces professionals could then teach younger firms collect and manage data better which,
To get access to these new skill sets employees core sector and soft skills in turn, would enable predictive analytics
and increase workforce agility, CRE that are related to leadership and to help leaders make more informed talent
organizations should consider recruiting relationship-building. At the same time, decisions.
through a variety of channels and not younger employees can provide informal
rely on the traditional approach alone. learning sessions with older employees
1 Mohammed Faraz Khan and Richa Kejriwal, “Digital Workspaces – A Talent Management Strategy,” Zinnov, May 31, 2019.
2 Ruma Batheja, “Recruitment technology tools that every recruiter must know,” People Matters, May 23, 2019.
3 Erica Volini, Jeff Schwartz, and Brad Denny, “2020 Human Capital Trends Ethics and the future of work: From “could we” to “how should we”,” Deloitte
Insights, May 15, 2020.
4 “Talent acquisition analytics Driving smarter sourcing and hiring decisions with data,” Deloitte, 2018.
5 Ibid.
6
Gaming the commercial real estate talent conundrum | Real Estate Predictions 2021 Gaming the talent gap The need to quickly change and adapt has never been so high for the CRE industry. Right-skilled talent can play an important role in determining whether a company stays ahead of the competition or plays catch-up as the business environment evolves over time. CRE leaders should consider redesigning talent—rethinking and adapting the way their employees work, embedding technology into their decision-making, and redefining skills, talent processes, and practices to help them prepare for the future of work. Author Surabhi Kejriwal Real Estate Research Leader | US sukejriwal@@deloitte.com Contacts Jeff Smith Partner | Industry Leadership | US jefsmith@deloitte.com Jim Berry Senior Partner | Industry Leadership | US jiberry@deloitte.com Jim Eckenrode Managing Director | Deloitte Center for Financial Services | US jeckenrode@deloitte.com 7
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.nl/about to learn more. Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 countries serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 264,000 people make an impact that matters at www.deloitte.nl. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2021 Deloitte The Netherlands Designed by CoRe Creative Services. RITM0582346
You can also read
