NEW YORK CITY—Compensation is still soft but at least improving, and hiring is looking better, but the New Economy has made it more difficult. These are some of the discoveries in the 2014 Real Estate Hiring Trends Survey Report from SelectLeaders.

The report surveyed over 1,300 real estate professionals and employers, including top-line managers and HR executives, asking them to share their own perspectives on the upcoming year.

Regarding compensation and hiring, the survey found:

  • 41% believe their company's compensation is back to 2008 levels, while the majority (59%) says it is not.
  • 67% of real estate professionals surveyed expect their total compensation will increase in 2014.
  • 67% believe hiring will increase.

The New Economy played a large role in the survey. Respondents believe the New Economy changed compensation models to one more based on increased revenue production at all levels, rather than emphasizing experience, location and individual performance. “Growth in revenue is demanded, with growth in head count constrained,” says one respondent. “Employees that increase Net Operating Income/ EBITDA are rewarded.”

Also, the New Economy has increased the difficulty of finding entry-level talent. As another respondent frames it: “There remains a shortage of young talent with any experience, largely due to the lack of opportunities graduating students have had over the course of the past five years. We, like others, tend to be reluctant to train new talent when we have to remain lean.”

Respondents also indicated that the amount of expectations on employees has increased, with over 80% believing that they have had to expand their roles beyond basic duties. Says one respondent: "Compensation is rising but workload expectations per person have increased. Assistants and support positions are significantly down. Every employee must contribute to the bottom line."

The ultimate note, however, is one of cautious optimism: “The worst of times are behind us," one respondent notes. "More capital across the globe is being allocated back to commercial real estate . . . look forward to an exciting 2014.”

The full report—including charts and survey responses with comments on the potential dual impacts of the ending quantitative easing and the implementation of the Affordable Care Act—can be found on the GlobeSt.com SelectLeaders page.

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Geoffery Metz

Geoffery Metz is the content manager for ALM's GlobeSt.com, Credit Union Times and Treasury & Risk. Before joining ALM, he spent several years overseeing the newsroom at the financial wire service Business Wire, with special focus on multimedia presentation for the web.

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