CREW Network has maintained its title as the leading producer of research on women in commercial real estate with the newest white paper, focusing on barriers that continue to affect women’s advancement in the industry.
The 2017 White Paper titled Diversity, The Business Advantage: Best Practices for Gender Equity and Inclusion in Commercial Real Estate looked at 10 commercial real estate companies that have benefited from greater gender equity and a more diverse workforce. The 2018 White Paper titled Achieving Pay Parity in Commercial Real Estate builds off the findings of the 2017 White Paper and presents data, expert insight, and action items for companies and women professionals to close the gender pay gap.
The White Paper explains that “pay parity is when employers can show there is no pay gap across the entire workforce between individuals when it comes to gender, race or ethnicity.” The dictionary definition of parity as the “quality or state of being equal or equivalent.” Commercial Real Estate is under more pressure to address equality issues as companies are striving to meet the goals of quality and diversity inclusion.
Below, are the highlights and key takeaways from this year’s white paper:
Facts and Findings
• The gender pay gap in commercial real estate has decreased since the 2005 study, however, it still exists and is strongest for respondents earning less than $100,000 and above $250,000.
• Studies show that women in commercial real estate are 54% less likely to have a sponsor that can provide career advice or help compared to their male counterparts.
• The pay gap widens as years of experience increases.
• The software company specializing in pay data, PayScale, believes women are less likely to ask for raises compared to men, having a cumulative effect on women as they progress in their careers.
Benefits for Women and Companies
• Companies where women account for most of top management show superior sales growth and higher cash flow return on investment.
• The McKinsey Global Institute stated, “if women—who account for half the world’s population—do not achieve their full economic potential, the global economy will suffer.”
• The Institute of Women’s Policy Research noted that the poverty rate for all working women would be cut in half from 8% to 3.8%.
• 25.8 million children would also feel the benefits of equal pay, decreasing the number living in poverty from 5.6 million to 3.1 million.
Achieving Pay Parity
• Each year, Wells Fargo conducts a pay equity analysis of its US employees, which is 93% of its total workforce.
• The analysis is conducted in the fourth quarter, syncing with the annual pay review cycle, and compares the compensation of employees performing the same work to ensure employees are being paid fairly.
• In February 2018, Wells Fargo’s results showed that their female US employees make more than 99 cents on the dollar than their male counterparts.
• The head of compensation at Wells Fargo, Michael Branca, noted the five lessons learned from the process.
1. Equity starts at the top; leadership must have a commitment to reaching this goal.
2. Cultivate and nurture a diverse workforce. It’s important to pay attention to equality with current employees, but it’s important to keep diversity in mind when hiring and training employees to maintain a diverse workforce.
3. Pay equity is an ongoing process; it’s not a onetime event, it is something that must be a long-term commitment and goal.
4. Engage an expert. It’s important to have someone there to advise the work along the way.
5. You must be competitive. Wells Fargo has created three separate programs for employees to use to help balance work and family life that include options for paid parental leave or caregiving leave.
• Adobe reached equal pay in 2017 after reviewing the job structure of their US employees and analyzing the compensation practices and made the appropriate changes.
• Starbucks has reached 100% of pay equity after 10 years of efforts.
Actions Going Forward
Korn Ferry released an article titled “Equal Pay for Equal Work: The Status Quo is Not an Option” and created a five-step process called “EQUAL” that helps identify possible pay gaps and how to address the root cause.
1. Establish Parameters by scoping the work, developing a plan, identifying data, and assessing perceptions
2. Quantify Gaps by analyzing the data, building pay models, and identifying gaps
3. Understand Drivers by reviewing the root cause and analyzing rewards programs, talent acquisition and management, and governance
4. Action Planning by introducing pay remediation and strategy, design, and culture changes
5. Lead Change by aligning leaders, communications, changing road-map, equipping leaders, and keeping a sustained effort.
You can read the full 2018 White Paper: Achieving Pay Parity in Commercial Real Estate here.