It may seem counterintuitive, but allowing your best employees to change departments within your firm drastically improves your business. Studies show that encouraging internal promotions is one of the most effective ways to keep and develop talent. Despite the many benefits, many companies do not promote internally outside of their existing silo. This attitude means that if an employee wants to get ahead, they have to look outside of the firm.
Most professionals in commercial real estate do not have a career that moves in a straight line. Many brokers began their careers in research or property management. Some real estate professionals begin in accounting and move to the development side of the industry. Viewing your company’s internal structure as a lattice instead of a ladder allows your employees to gain promotions without staying in one type of role. It also encourages managers to help develop talent that benefits the firm as a whole, rather than just learning how things are done in one department. Having employees crisscrossing your business can create a more inclusive and diverse culture.
Encouraging talent mobility in your company can also lead to new perspectives in your teams. The new brokerage team member might have a different perspective of what a client is looking for after being their property manager. Internal promotions also bring different departments into closer collaboration. The newly promoted employee will understand many of the internal friction points between departments and may be able to help smooth them out.
The biggest obstacle to encouraging internal promotions are managers in your firm. Many managers enjoy having the top employees in their department because it makes them look good. However, one way to prevent this kind of talent hoarding is to recognize the managers for developing talent that moves within the firm. If talent development and recognition are part of your real estate company’s culture, it is less likely that managers will block their employees from moving to a different department. This can also lead to managers becoming known as great bosses to work for as they believe in developing their employee’s careers. Another obstacle to encouraging internal promotion is your company’s bureaucracy. Moving between departments should be as easy and politics free as an employee applying to an external job. By eliminating the perception of “poaching” talent, you will encourage other managers to hire internal candidates rather than bringing in new employees who will need to be trained on your systems.
If you need help adding top performers to your team, our recruiters are ready to help. We can help you find and hire great talent throughout the commercial real estate industry. Retaining them and promoting them is on you.