A Closer Look at Top Real Estate Recruitment Challenges
The real estate sector in India holds global recognition, currently contributing 7% to the GDP, and it is anticipated to go 13% by 2025, as per the Ministry of Housing and Urban Affairs. Moreover, this sector emerges as the highest employment provider in the country, attracting Indian youth from diverse backgrounds with its promising career opportunities.
With over 90% of leading real estate firms reporting a surge in demand for top talent, the quest for excellence has become a race against time. Yet, as technology advances, demographics shift, and workforce expectations evolve, talent acquisition in real estate is facing a trend shift. Amidst these dynamics, a set of persistent challenges cast shadows over the recruitment process in the real estate sector.
Let’s delve into the top 13 challenges that stand in the way of recruiting the best real estate talent.
Scarcity of Top Talent
The real estate industry grapples with an acute scarcity of top-tier talent possessing a well-rounded blend of expertise, adaptability, and innovation. The sector's rapid expansion has intensified the competition for professionals capable of navigating its intricate challenges. As projects become more complex and diverse, the demand for skilled architects, planners, brokers, and property managers outpaces the available supply.
High Turnover Rates
The dynamic nature of real estate roles often results in persistently high turnover rates, impacting operational continuity and organizational stability. These high turnovers are attributed to factors like project-based employment, counter-offers from competitors, and transient work arrangements.
Evolving Industry Trends
The real estate industry's landscape is marked by rapid technological advancements, shifting customer preferences, and sustainability imperatives. Real estate firms look to hire professionals who not only excel in traditional real estate practices but also possess the agility to embrace innovative technologies, stay informed about sustainable construction practices, and navigate the digital realm.
Sourcing and Screening Challenges
Efficiently sourcing and screening suitable candidates across diverse platforms and geographical boundaries poses a considerable challenge. The abundance of online job boards, social networks, and industry-specific platforms can lead to information overload and inefficiencies in the screening process.
Diversity and Inclusion
Promoting diversity and inclusion remains a significant challenge in real estate recruitment. Achieving an inclusive workforce requires addressing unconscious biases in hiring, fostering a culture of respect, and offering equal opportunities to candidates from all backgrounds. Diverse teams bring a range of perspectives and ideas that drive innovation and improved decision-making.
Compensation and Benefits
Striking the right balance between competitive compensation and attractive benefits is an ongoing struggle in real estate recruitment. While competitive pay is essential, offering a comprehensive benefits package that includes health, retirement, and work-life balance is equally crucial.
Competition from Other Industries
The allure of sectors like technology and finance, which are perceived as offering better growth opportunities and more innovative work environments presents stiff competition for real estate recruitment.
Skill Gap and Training
The ever-evolving demands of the real estate industry often result in a notable skill gap among potential candidates. Traditional skill sets, while still relevant, are now supplemented with technology-driven expertise, sustainability awareness, and data analytics proficiency. Real estate recruitment faces the challenge of identifying individuals with these multifaceted skills, as well as the ability to adapt to future shifts.
Remote Work and Flexibility
The modern workforce increasingly seeks flexibility and remote work options, and the real estate sector is not exempt from this trend. However, real estate recruitment faces the challenge of balancing remote work preferences with the inherent need for collaboration, site visits, and hands-on project management.
Moreover, ensuring consistent communication, efficient workflow management, and maintaining team cohesion in a remote or hybrid work environment poses complex challenges for recruitment efforts.
Succession Planning
Developing a robust pipeline of future leaders is vital for the sustained success of real estate firms however succession planning within the real estate industry is hindered by various factors. The industry's dynamic nature and project-based roles make identifying and grooming future leaders a challenge. Moreover, a gap in middle management roles can disrupt the seamless transition of leadership.
Long Hiring Times
The real estate recruitment process can be time-consuming due to its intricate nature. Multiple rounds of interviews, detailed background checks, and the involvement of various stakeholders elongate the hiring timeline. This poses a risk of losing top candidates to quicker offers from competitors or other industries.
Candidates Have Multiple Offers
The competitive landscape of real estate recruitment is compounded by the reality that top candidates often receive multiple job offers. This challenge forces real estate firms to accelerate their decision-making process and provide clear value propositions.
Demand for Tech-Savvy Individuals in the Sector
The real estate industry is undergoing a technological transformation that demands professionals with advanced tech skills. This challenge stems from the growing reliance on digital tools, data analytics, virtual reality, and property management software to enhance operational efficiency, decision-making, and customer experiences. This demand goes beyond mere familiarity with technology; it requires a profound understanding of how these tools integrate with the intricate dynamics of the real estate sector.
Remember, these challenges are not isolated but interconnected. Addressing them requires a comprehensive and strategic approach that takes into account the evolving nature of the real estate industry, the changing expectations of the workforce, and the need for sustained growth and competitiveness.
Would like to see how SilverPeople's top real estate recruiters can assist you in managing the above-mentioned challenges and the persisting talent war? Connect with us at enquiry@silverpeople.in
SilverPeople, a venture by Uberlife Consulting Pvt. Ltd., offers complete recruitment solutions for all hiring/headhunting requirements in a Focused, Accurate, and Time-bound manner (Proprietary FAT* Methodology).
SilverPeople specializes and is placed strongly in 7 Industry verticals: Retail, E-Commerce, Education, Real estate, Fintech, Digital Transformation and Sustainability. SilverPeople has a deep understanding & strong capability to solve Digital Transformation Hiring challenges and is the go-to place for ‘Go Digital’ recruitment consulting!
