Just Keep Swimming: Why Hiring Shouldn’t Stop Amid Economic Uncertainty

Despite rising interest rates and turmoil in the banking industry, the U.S. economy added 253,000 jobs in April. According to CBRE, while hiring has continued in most industries that drive commercial real estate demand, it could be short-lived: The brokerage predicts that in subsequent months, job growth will continue to slow and the economy may move toward a “moderate recession.”

Given this outlook, some CRE employers may be inclined to pause hiring until the economy stabilizes. However, regardless of the state of the economy, businesses should always be looking for top talent. 

SelectLeaders Managing Director Ryan Neale said CRE employers are typically able to map out their organization’s short-term and long-term goals and assess their hiring needs based on their growth trajectories. In the wake of economic uncertainty, many employers have been prioritizing business planning for the short term and focusing their attention on addressing immediate concerns, and as a result, long-term plans have been put on the back burner. However, by incorporating hiring into their overall strategies, businesses can ensure that they get the right talent once the economy becomes more predictable.

“Businesses that have a strong plan in place and are ready to hire can capitalize on finding new talent once the economy goes back to normal,” Neale said. “On the other hand, the firms that end up getting left behind are the ones who may not realize that they need incredible people to facilitate their growth. They may risk not getting the people they want for their company down the line.”

For Employers: Put The Brand At The Forefront To Generate Excitement

Neale said companies should focus on their employee brand and vision as well as the value they can provide for candidates. These aspects should be present throughout their platforms and emphasized in each stage of hiring, starting with the job description and continuing throughout the interview process. Companies, including those going through a hiring freeze, should be on the lookout for candidates who align with the company's values and are able to address specific pain points, rather than just bringing on new talent for the sake of general growth.

He said that if companies really want to remain competitive, they should keep in mind that candidates, especially millennials and Gen Z, are more likely to apply to companies that offer a hybrid work option, as during the pandemic, many employees had some flexibility around how they managed their schedules. 

“It's important to provide a clear picture of the role and growth opportunities at your company,” Neale said. “This goes beyond simply outlining job responsibilities and required skills. By doing so, you can help candidates envision their prospective career paths within your organization, ultimately landing you high-potential talent.”

Neale added that to increase retention, companies should also be investing in their current employees by providing them with flexible work options, opportunities for advancement and other incentives to increase engagement.

For Job Seekers: Look Out For Companies With Shared Values And Growth Mindset 

Neale said that among the top priorities for job seekers should be to find a company where they can see themselves being successful. When candidates view job boards — including the SelectLeaders job board — it is best to keep an eye out for companies that have clear messaging centered around how they plan on achieving strong performance from their workers.

As far as concerns about layoffs go, Neale said that while some employers may assess their need for that particular role in order to make decisions about downsizing, many employers tend to prioritize a person’s contribution to the company.

“People are not just making a decision on a job. They are making a decision on the organization, and specifically how it is right now,” Neale said. “Employees can look at the organization to see what their strategy for growth is right now and what it has been historically and if they have some level of stability.”

Opportunities Still Abound In Some Sectors 

SelectLeaders found that the asset management sector has been experiencing increased engagement from candidates, with asset and portfolio management résumés up by 58% from Q4 2022 to Q1 2023. Neale said many employers shifted their focus toward maximizing the profitability of their assets and hiring for a range of positions, from analyst to senior vice president.

May 2023 saw an increase in property management jobs on SelectLeaders, with job postings doubling from the previous year. 

“The growing number of property and asset management jobs on SelectLeaders indicates a wider industry growth,” said Jermaine Frazier-Collins, customer success associate at SelectLeaders. “This trend could be due to a higher demand for these roles or a preference among companies to recruit for roles within those sectors using our platform.”

He added that the platform also received more posts for maintenance technicians and other service roles. In May, postings for maintenance technician jobs on the SelectLeaders platform increased by 15.4% year-over-year.

Additionally, certain CRE markets have seen strong growth. According to PricewaterhouseCoopers’ Emerging Trends in Real Estate 2023 report, several regions — including the Sun Belt areas of Dallas, Phoenix and Miami — have been on the radar for investors and developers. Neale said the growth in these areas can have an impact on hiring.

“We’ve been seeing the migration that’s reflected in a lot of reports, specifically with the firms in the Northeast moving to the Sun Belt, and as a result, there’s been an uptick from a hiring standpoint,” Neale said. “We look forward to seeing how jobs in particular regions and asset classes continue to grow once CRE becomes more stable.”

Neale predicted that opportunities will become the most abundant for regions and companies that are focused on growth.

“Overall, there will be winners and losers when the dust settles,” Neale said. “Organizations that continue to prioritize a strong employee brand and strategic talent plan will have an incredible advantage as the industry normalizes.”

What Comes Next?

Neale said that CRE organizations anticipate experiencing a greater sense of normalcy, which includes an uptick in acquisitions and more predictable deal flow, once interest rates stabilize. 

While CRE companies are unsure about when the economy will become more consistent, when it does, they need to be prepared to welcome a new batch of talent, and employees need to be ready to heed the call.

“Once we can predict interest rates, we can get back to a more consistent normal,” Neale said. “While organizations that are unprepared may lose great talent and find it difficult to fulfill their growth expectations, those with strong brands and pipelines and plans for hiring will make a strong comeback.”

Need help with hiring for your firm or finding your next career opportunity? Visit SelectLeaders, a Bisnow company, to view job postings and connect with recruiters specializing in commercial real estate.