WASHINGTON, DC–When Toby Bozzuto stepped into the role of CEO of the Greenbelt, Md.-based Bozzuto Group last year, he made certain that Julie Smith, Chief Administrative Officer at the company, would stay to be his right hand as he moved the company forward. Smith had twenty something plus years of experience at the firm so this was a no-brainer for Bozzuto. As was the promotion of a woman who had been mentored within the company and was ready for higher level challenges.

Those first decisions by Bozzuto as he became CEO were the fruit of a larger, ongoing effort at the company to mentor and promote women within the firm. The effort has paid off at the bottom line level, Bozzuto says. “We are a private company so I am not going to reveal numbers but we are doing better than ever.”

Bozzuto, along with several other real estate professionals, spoke to reporters following a panel conference held at Freddie Mac's Customer Conference 2016 in Miami on Monday.

Other professionals on the call included Debby Jenkins, SVP Underwriting and Credit at Freddie Mac Multifamily; Bozzuto's CAO Smith, Stephanie DeLong, a partner at Venable; Maggie Burke, an analyst at Berkadia; and Carl McLaughlin, Senior Director of Loan Servicing at Freddie Mac Multifamily.

One item quickly became apparent — the Bozzuto Group is more the exception than the rule in that it actively plans for and encourages diversity within its ranks.

Much of the industry, one gathers from the discussion, is that while the industry embraces the notion of diversity in theory few companies have put in place practical and tangible steps to encourage it.

Indeed, one of the goals the panelists hoped to achieve with their presentation was not just to raise awareness “but also to challenge the multifamily industry to take action and focus on recruiting and promoting women,” Freddie Mac's Jenkins said.

Debby Jenkins, SVP Underwriting and Credit at Freddie Mac Multifamily

Smith from the Bozzuto Group pointed to industry stats that showed at the entry level the gender breakdown of people entering the multifamily profession was fairly even — 54% men and 46% women — but those numbers quickly began to diverge as people would get promoted. “By the time they are at the SVP level, the numbers are slim for women.”

Getting that ratio back into balance isn't rocket science — but it does require the company to be proactive. Some tips from the panel on how to do that:

Encourage New Hires

The younger women, as they come in as new hires, need to be told they have a path they can climb and it is incumbent on us to give them the necessary tools and skills. This includes technical training but also encouragement to move outside of their comfort zone. “We have to tell them it is okay to fail,” DeLong, the partner at Venable, said.

Constantly Assess the Talent

Women have a tendency of assuming that if they don't have every single skill set necessary for a position then they shouldn't try for it. That is often why women don't step up for higher-level opportunities, Smith said. It also could be due to lack of precedence — has a women ever held a certain position — or watching other women be subtly discouraged from taking a role due to her family responsibilities. Whatever the cause, executives should hand-pick their team instead of waiting to be approached by candidates, Smith said.

Encourage Networking

This is true for all new hires, panelists said. Encourage everyone to network, to get to know others in the field and within the company. “Being in the right place at the right time is half of the battle,” DeLong said. “It is not enough to come to work and do good work for 12 hours a day. (Writer's note: We hope DeLong was joking about the 12 hour work day). You have to get to know people.”

Encourage Mentoring

Most companies invest in their talent at some level, either through training or new software or equipment. Mentoring is, or at least should be, an extension of that, Burke said. McLaughlin at Freddie Mac told of his mentor twelve years ago who showed him the necessary steps to take to develop a career at the GSE. Today, he watches in admiration as his direct supervisor does the same for both men and women. “We are making the same opportunities available to women, to our daughters who are coming up,” he said.

Insist on Gender-balanced Teams

These are important and can have a direct impact on the bottom line, Bozzuto's Smith said. “We have gender-balanced teams throughout the company even on the construction side, where typically employees are men.” This balance applies not only to gender, she added, but also age and race. “With these different perspectives you make better decisions and implement better strategies.”

Don't Fail The Moment of Truth — Family Leave

All of this is well and good but for many women, and increasingly men, there will come a moment of truth when time off is needed to recover from a pregnancy or assist with a family crisis. Inevitably, an employee will wonder if she takes those three months off will she be welcomed back with the same career path and opportunities, Smith said. “In order to dispel that perception there has to be a lot of positive examples.”

Scrap the Work-Life Balance Talk

It's basically a unicorn or a white elephant — it doesn't exist, said Venable's DeLong. “There is no such thing as a pure balance and it is a disservice to try to impose that myth on women.”

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Freddie Mac Panel: The ABCs of Promoting Women in Multifamily Finance

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