Diversity in the workplace is good for business. Research shows that organizational environments in which there is diversity in all forms — gender, ethnic, and cultural — have greater financial success. Why? Diversity generates more opportunities to tap an increased variety of viewpoints and perspectives, which leads to better experiences for customers, employees, and investors.
Real estate has historically been a male-dominated field — to such a degree, in fact, that in the late 1980s and early 1990s few women became involved in the business. Even today, the number of women running real estate firms, or in line to do so, is extremely small. Recognizing this issue, Ferguson Partners and FPL Associates collaborated to conduct an analysis of the relationship between REIT performance and a wide range of distinct Board characteristics.
The results were definitive, with one factor standing out as highly correlated with firms outperforming their peers: female presence on the Board. Across three-, five-, and ten-year time horizons, those firms with at least one female Board member who had served at least three years, materially outperformed their counterparts with no female representation.
Real estate companies that wish to remain competitive need to have frank discussions immediately about diversity and the barriers that exist in recruiting, retaining, and developing diverse talent. The conversation needs to begin at the Board and C-suite levels and not just remain an issue for chief human resources officers. With our committment to diversity and experience placing qualified, diverse talent, Ferguson Partners is the right partner for you.