“CRE has a pretty weak track record on diversity,” says Michelle Hay, global chief of human resources for Cushman & Wakefield. But she adds, her company “is on a mission to change that.”

That mission has become the consensus at the C-Suite level. “It's a subject matter I have a lot of passion for,” says Larry P. Heard, chief executive officer of the Houston-based Transwestern. “Our workforce is getting younger and more diverse,” with both more women and minorities signing on. “It's a good thing in my view” and “mirrors what's going on with college graduates.”

And the student population's growing diversity helps to build a much-needed pipeline. “We have a purposeful approach to recruiting,” says Mary Bilbrey, chief human resources officer for JLL, Americas. “We are sourcing talent from a broader set of companies and schools.”

“It's happening naturally,” adds Heard. “We're all recruiting from the same pool of candidates. So we're all evolving in the same direction.”

But diversity can mean more than diversity of ethnicity or gender. Technology has become a greater concern, and Bilbrey says JLL has started to put more emphasis on recruiting talent from outside the real estate world.

And it does not encourage innovation just through its recruiting process. Once on board, employees have opportunities to distinguish themselves. For several years, the company has held its DaVinci Awards, a contest open to all employees that have new ideas beneficial to the industry. The company sponsors the creation of case studies, provides seed money, and even helps design prototypes. Each year, employee teams present their new products to corporate leaders, including the chief executive officer.

Last year, one of the participants, a company engineer, developed a patented device that protects building engineers from arcing electricity, and allows work to proceed without shutting down a building's electric system.

The awards help potential recruits “understand that this is an organization that, if you have a great idea, we absolutely embrace and encourage it,” Bilbrey says.

Many corporate leaders believe diversity brings a significant set of rewards. JLL has found that there is a strong correlation between winning business and using diverse teams to pitch its services to potential clients. “Some of our clients are absolutely champions in this way,” Bilbrey says. Many have their own diversity plans, and “we've been asked by some of our clients to share our ideas on how to drive diversity.”

Those experiences now seem quite common. “Our clients are changing in the same way,” Hay says, and frequently ask about diversity initiatives. Sometimes, C&W is even asked to place someone from human resources on the team handling a deal.

Achieving the goals shared by both real estate professionals and clients will probably require experimentation. Hay believes pay systems based on commissions is one of several barriers that keep women from pursuing real estate careers. Many see that “as too risky.” But her company is trying different strategies, such as paying salaries, to get women in what were commission-only jobs through those first few years.

Bilbrey, who has been on the job for about two years, says JLL now trains its human resources teams to recognize confirmation bias, an innate tendency to respond positively to certain bits of information about candidates, especially if the interviewer has similar traits. These could include what college they attended, family background or other life experiences. Left unchecked, such bias can sabotage efforts to diversify.

JLL also created recruiting pods that focus their attention on one particular segment of the business. This way, recruiters gain a deeper understanding of the skill sets truly needed by candidates and hire on that basis rather than whatever biases they may bring to the table.

The company has also adjusted the tasks handled by some recruiters. Instead of everyone doing end-to-end recruiting, some now focus exclusively on sourcing. That is, building relationships with organizations, including schools, black MBA associations, veterans' organizations, women's groups and others, that helps build pipelines of highly qualified candidates.

“We're connecting with the right people,” she adds. JLL has seen a dramatic improvement in the efficiency of its hiring, including more applications coming in and a 96% acceptance rate when it offers someone a job.

Many firms now encourage the formation of women's business groups to help build the capacity of their growing female workforces. In the past couple of years, professionals at many Cushman& Wakefield offices have started chapters of its Women's Integrated Network. Hay says the groups provide both mentorship and professional development and helps both male and female professionals explain the firm's commitment to advancing women in commercial real estate. Furthermore, C&W has set a goal that by 2021, 50% of its recruits will be women.

JLL's group has been around for a while, but in the past some voiced concerns it was too focused on social activities. Today, however, it puts more emphasis on fine tuning members' business skills, including how to present yourself or how to set up a proper social media page.

These approaches have gotten results. Bilbrey says 68% of the firm's recent new hires in key roles were either women or minorities. There has also been a 7% increase in high-ranking female officers just in her short time with JLL, and 44% of the non-director board seats are women. Furthermore, the corporate solutions division saw a 20% increase of new female hires year-over-year. “Our clients see that, and it's important to them.”

Achieving racial diversity may be a tougher task. Less than 1,000 people of color hold management positions in an industry with more than 125,000 professionals, according to NAIOP. But the association is, along with many other professional groups, a partner in Project REAP, which brings in career-changing professionals, including architects, bankers, engineers, MBAs and lawyers, and provides a curriculum taught over several months by top real estate figures. In a short time, it has increased the number of minority professionals by roughly 10%.

NAIOP has begun to do its own diversity work, Bisacquino says. The association reaches out to historically-black colleges, for example, to help start real estate courses in their business schools. Last summer, NAIOP Georgia partnered with NEXUS Summer Programs to hold a two-week real estate course at Georgia State University in Atlanta for about 35 top students of diverse backgrounds. “These are very bright students, but they haven't yet thought of commercial real estate as a career choice.” The program will expand this year to Villanova and New York University. “It isn't going to move the needle much, but it's a good start.”

All companies in every industry must create plans to recruit and manage millennials. But what millennials want may come as a surprise to those who believe that a generation raised through “helicopter parenting” needs too much support.

“I think millennials have been a little maligned,” Bisacquino says. He believes younger people in the industry show a greater willingness to make longer commutes and are less likely to want to work from home.

JLL's Bilbrey says many just want flexibility. They constantly say, “'give me the autonomy'” to accomplish creative projects. “They value being able to direct how they get the job done.”

“Historically, some groups have waited their turn,” Heard says, but “the millennials are very quick and ready to assume more responsibility. They're ready to take that on. I have not found this group to require a bunch of handholding.”

However, autonomy does not mean going it alone. “The idea of belonging is still important,” Bilbrey says, so JLL encourages its new hires to work in teams.

JLL believes helping its workforce take part in activities with a social mission can also foster a sense of belonging to something important. It recently organized a 300-strong force of volunteers to help the Special Olympics hold its latest series of competitions, held in Chicago this spring.

Transwestern's Heard also says this new generation is looking for a “purpose-driven” life. “Each generation has its own unique character and work styles from generation to generation evolve. We actually encourage people to give back to their community,” whether by volunteering for a charity or other nonprofit such as Make-a-Wish Foundation, which has a national relationship with Transwestern. “We talk about that in a very open manner. All of our team members regardless of age really appreciate that.”

The larger lesson for recruiters is that today's companies must have values. And that includes not just a social mission but providing a healthy work environment as well. “It's a big topic with our existing employees and prospects we're recruiting,” Bilbrey says. That's one reason JLL recently linked its corporate real estate and human resources departments. How the company designs and operates its offices is considered an extension of the talent strategy.

The firm recently remade its global headquarters in Chicago, for example, and made sure everyone had access to clean air, sufficient light, exercise options, fresh food and social outings. Among the new features is a casual gathering space with a barista and views of the city's Grant Park. There, people from different departments can have conversations that lead to collaborations.

This kind of transparent, open space also helps new employees interact with upper management in ways that were rare in the past. “Leaders are very approachable, and go have coffee with others in the club,” according to a JLL spokesperson. “They're not hidden away.”

“I believe that they are looking for a very inclusive culture that is not hierarchical,” Hay says of millennials. And like JLL, C&W has also redesigned its Chicago headquarters so today's generation can solicit feedback from senior leaders.

“It's a very social place to be,” she adds. Employees now enjoy outdoor spaces, along with a coffee bar, wellness programs and a variety of collaborative indoor spaces. And creating a more collegial workplace has brought many benefits. All employees, not just millennials, are better “able to understand the full platform we offer our clients.”

These changes also benefit companies' relationships with their clients, who can now connect with real estate professionals in relaxed atmospheres. And these days, many clients want to create their own open offices, Bilbrey says. “It helps that we can speak about it personally and say, 'we do this. We're all in this together.'”

Commercial real estate firms may have to commit to even more openness and communication. “The pace of change is accelerating with technology,” Heard believes, and diverse workplaces, especially ones with well-integrated millennials, will handle it better. Transwestern recently adopted a new technology platform, and what had been 17 software packages shrank to just two. “A lot of people were accustomed to working with each of the 17,” but for the most part, the transition is easier on the younger generation. “Most of them went to high school with their laptops. They are more highly attuned to using technology.”

Still, all this change could, if mishandled, produce some workplace chaos. But many of the largest commercial firms believe they are diversifying without disruption. Hay says C&W avoids hiring those who would damage the company's collegial culture. “That goes against our core values.”

Transwestern's Heard agrees and says “we are very intentional in our hiring process.” Therefore, “our workplace environment has changed, but our workplace culture has not. It remains fully intact.”

Bisacquino believes the major firms, including big developers like Prologis, Duke and others, will in the next few years make a lot of progress recruiting and blending together more diverse workforces. “They are already feeling the pinch from the shortage of talent. It has to happen for these companies to thrive.”