Leadership Development Budgets Get Cut to Firms’ Detriment

High interest rates, financing challenges and rocky market conditions have led some in the commercial real estate industry to rethink professional development budgets. According to quarterly research conducted by CREW Network, 38% of women did not request professional development from their employers this year. When asked why, the majority of respondents cited budget cuts.

“Everyone is cutting costs where they can, and professional development might seem like a ‘nice to have,’ landing it in the reductions category,” says Wendy Mann, CEO of CREW Network. “But I’d suggest that now is the perfect time to invest in women’s leadership.”

Understanding the benefits of women’s leadership training and how it provides organizations with an advantage can help companies get ahead while competitors focus on making cuts.

The Benefits of Leadership Training

The latest CREW View: CRE Women Speak research report found that 39% of women working in CRE feel their employers were “somewhat supportive” or “not supportive at all” when requesting professional development. Mann explains that investing in leadership is a powerful retention tool, which has become more important post-pandemic due to talent shortages and high turnover costs.

“There’s this cartoon circulating on social media where the CFO says to the CEO, ‘What if we invest in these people and they leave?’ And the CEO replies, ‘What if we don’t and they stay?’ This scenario gets at the truth of the matter, showing how not investing can cost a company in the long term,” Mann says.

She also points out that promotions often happen based on dealmaking alone. While this achievement is important, Mann emphasizes that promotions should look at the bigger picture and include professional development, as future leaders require more than transactional success to excel in their roles.

Uncertainty Is the Perfect Time to Set a Competitive Advantage

The market is slightly different in each location, but regardless of local conditions, it’s always a good time to invest in your people, Mann notes.

“Commercial real estate is a bottom-line kind of business,” she says. “We’re trying to make money and we want every advantage possible, and it’s been proven that women in leadership — whether it’s on a board or in the C-suite — make a company more profitable.”

Professional development gives women access to important market knowledge and networking opportunities, providing an edge in the business. Then, when the market shifts and interest rates get cut, companies are positioned more strategically when deals pick up again.

CREW Network has spent the past three years designing a new leadership program that supports women along their entire career journey, from emerging leader to the C-suite. “It’s going to be a game changer for companies that are ready to make this investment,” Mann says.