Diversity, equity, and inclusion (DEI) initiatives are broadening among commercial real estate companies, according to the results of The Global Real Estate DEI Survey 2022 released by ANREV, INREV, Ferguson Partners, NAREIM, NCREIF, PREA, REALPAC, and ULI.
The Survey also reveals the gender composition of the CRE industry, by region, and for the first time reports non-binary demographics for North America.
The Global Real Estate DEI Survey 2022 suggests that commercial real estate companies are broadening and deepening their diversity, equity, and inclusion (DEI) programs and initiatives.
Data from the DEI Survey 2022 shows that while almost all respondents are addressing gender or gender identity, firms are also now placing a higher degree of importance on other dimensions of DEI.
Results also showed that 95 percent of respondents are addressing issues of DEI either by having a formal program or by enacting at least some initiatives and policies to improve the representation of women and underrepresented groups at their respective organizations.
The DEI Survey 2022 represents more than 357,041 full-time employees, $2.34 trillion of assets under management, and a cross section of the commercial real estate industry in terms of size, region, and business classification. The Survey, conducted between July and October 2022, brings together participation from 192 unique organizations that provided 210 submissions detailing their DEI practices in North America (81.4 percent of respondents), Europe (12.4 percent), and Asia-Pacific (6.2 percent).
The Global Real Estate DEI Survey is an annual report tracking corporate DEI practices and employee demographics for commercial real estate globally, across regions, and business types.
- The Survey tracks gender, gender identity, race/ethnicity and nationality, and age across seniority and job functions in North America as well as gender, gender identity, and age across seniority in Asia-Pacific and Europe. It also provides insights into corporate practices in relation to DEI programs, recruitment, retention, training and development, inclusivity, and pay equity.
- The 2022 Global Real Estate DEI Survey, a partnership between ANREV, INREV, NAREIM, NCREIF, PREA, REALPAC, and ULI and conducted by Ferguson Partners.
Key findings from the Global Real Estate DEI Survey 2022 include:
DEI Programs and Measurable Outcomes
- 95 percent of respondents are addressing issues of DEI either by having a formal program or by enacting initiatives and policies to improve the representation of women and underrepresented groups.
- Among respondents that have a formal DEI program, more than 85 percent set qualitative and/or quantitative or measurable goals, and, over the next 12 months, 11.1 percent that do not say they plan to do so.
- The main goals are increasing the representation of underrepresented groups at the senior level and improving employee engagement.
Recruitment, Retention, and Pay Equity
- Anti-bias measures are important for recruitment and retention with a third of respondents planning to ensure managers receive training on anti-bias hiring within 12 months.
- A key strategy for retaining talent from underrepresented groups is to outline job requirements very clearly and set unambiguous expectations.
- Gaining feedback is another important tool. Almost three-quarters of respondents seek feedback on DEI initiatives from their employees.
- CRE companies are also tackling pay equality in greater numbers. In 2021, 79 percent of respondents were analyzing pay gaps based on gender or planning to do so. The figure has risen to 85 percent in 2022. Europe leads this analysis with 84 percent of respondents in Europe currently monitoring pay equity compared with 66.7 percent and 68.6 percent of Asia-Pacific and North American respondents, respectively.
- According to the DEI Survey 2022, firms of all sizes are working on levelling the pay gap.
There is no one global strategy for DEI within CRE, however, and so the Global Real Estate DEI Survey 2022 provides regional insights into the differing approaches adopted across the globe:
North America snapshot: Out of 192 unique organizations submitting data to the DEI Survey 2022, 81.4 percent were from respondents with operations in North America.
- For the first time, the DEI Survey 2022 collected data on nonbinary professionals. Almost 33 percent of firms say they collect gender identity data outside of a male/female binary definition. Among interns, just 0.5 percent identify as nonbinary and did not disclose their race/ethnicity.
- Slightly over 70 percent of respondents have a formal DEI committee, the main decision-maker on DEI policies.
- Firms judge the most impactful policy as communicating the importance of DEI to employees, followed by offering work/life balance programs such as childcare and flexible work arrangements. Just under 60 percent of firms said they allow all staff the option to work remotely at least part of the week.
- Gender and ethnicity/race diversity in CRE in North America: Men 57.5 percent; Women 42.5 percent
Europe snapshot: Out of 192 unique organizations submitting data to the DEI Survey 2022, 12.4 percent were from respondents with operations in Europe.
- European firms are showing signs of increased sophistication on DEI matters, especially broadening initiatives aimed at increasing the representation of underrepresented groups at the top levels, linking metrics such as compensation to outcomes, levelling pay disparities, and facilitating inclusiveness.
- All respondents report offering work/life balance programs, which may include childcare and flexible work arrangements. Almost eight out of 10 European respondents give all employees the option to work remotely at least part of the week. The global average is 61 percent.
- Almost 90 percent of European respondents target recruiting underrepresented groups in senior-level positions. The next goal is employee engagement on DEI initiatives.
- Gender diversity in CRE in Europe: Men: 60.5 percent; Women: 39.5 percent
Asia-Pacific snapshot: Out of 192 unique organizations submitting data to the DEI Survey 2022, 6.2 percent were from respondents with operations in Asia-Pacific.
- Asia-Pacific firms typically address the following dimensions of diversity: gender (100 percent), race/ethnicity/nationality (76.9 percent), sexual orientation (69.2 percent), age (61.5 percent), and physical disability (53.8 percent).
- Decision-making is led primarily by DEI committees, HR and senior-level employees. Almost a third of CEOs make decisions on DEI.
- Defining success is an important part of running an efficacious DEI program. For Asia-Pacific respondents, the most important outcomes are twofold: having more people from underrepresented groups in senior positions and gaining diversity throughout the entire organization.
- Gender diversity in CRE in Asia-Pacific: Men: 50 percent; Women: 50 percent
The DEI journey is a challenging one – and one that will take time to address. But respondents highlight one key strategy that proves successful for leveling up DEI within organizations: that of talking about DEI and communicating efforts to employees. Institutions participating in the Global Real Estate DEI Survey 2022 judge that the policy most successful in leveling up DEI is communicating its importance to employees.
An executive summary of the survey results can be found on ULI’s Knowledge Finder.
