Why Talent Recruitment Is Integral for CRE

The importance of top talent isn’t a passing trend. Recruiting top talent and retaining the best workers has become the biggest commodity for a company today, and the trend is likely remain a major necessity for workers well into the future.

“Talent will remain highly valued as long as the economy continues to support the health of the industry,” Kent Elliott, principal at RETS Associates, tells GlobeSt.com. “Our advice to the CRE companies we serve is to always to hire with the long-term in mind, and to take care of star performers.”

Talent has become so important not only because of the low unemployment rate and increased competition for workers but also because of the rising cots turning trained employees. “Employee turnover can cost a company 100 to 300 percent of each lost employee’s salary,” says Elliott. “These costs go far beyond recruitment. Those fees are insignificant compared to the opportunity cost of a lost employee. “If an acquisition professional leaves, for example, the downtime before a new employee is up and running could cost a company one or more acquisition opportunities that would have resulted in more income, more jobs, and more future growth.”

The cost of retraining isn’t unique to the commercial real estate sector. It has helped to fuel employment growth and company expansion. “This opportunity cost exists at all stages of the market cycle, making it essential for CRE companies to be strategically prepared to quickly bring in and retain top talent when needed in preparation for future growth and ongoing profitability,” says Elliott. “Today’s commercial real estate companies understand that the right talent has the power to significantly increase profitability.”

Of course the major driver of this trend and the reason why it is here to stay is the low unemployment rate. “With U.S. employment holding steady at near 50-year lows, these companies also realize that demand for talent is outpacing supply in many regions,” says Elliott. “This creates an employees’ market, where employers must act quickly to compete, not only to recruit the very best, but also to retain them.”

Talent is helping to drive major industry growth. For example reports show that 2018 transactional volume was the second highest on record. The accomplishment only increases talent competition. “Employment trends follow these transactional trends, as CRE companies with a full pipeline of projects seek out team members with the skills and experience to deliver the very best results for stakeholders,” adds Elliott.