Kellie Rastegar is Co-Founder and Creative Director at Rastegar Property Group.
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“Our ability to reach unity in diversity will be the beauty and test of our civilization.” These valuable words were spoken by Gandhi more than a century ago. Though strides have been made, even in 2020 gender and diversity disparity still exist within real estate, particularly among multifamily investment companies.
A Multifamily Executive study found that women only account for 17.2% of all board members within multifamily corporations. Another study shows only 15.5% of real estate investment trust (REIT) board members are women. That’s double the percentage from almost 10 years ago, but more change is needed.
A lack of diversification can impact a company’s bottom line. The Wall Street Journal released rankings that show a competitive advantage among S&P 500 companies with the highest levels of diversity and inclusion. In addition, McKinsey research has consistently found that diverse teams make better decisions and perform better financially.
Company culture and morale are often hampered by unbalanced gender representation. The CREW Network, an organization dedicated to advancing women in real estate, found that 65% of survey participants have personally experienced or observed gender bias at work, even though the majority of respondents said they never showcased bias themselves.
Of course, workplace diversity is not just about gender. Different age groups, ethnicities, races and sexual orientations are also important factors to consider. The most diverse companies hire employees with a wide variety of educational backgrounds, industry backgrounds, career paths and foreign work experiences.
The consensus is sometimes more difficult to reach on diverse teams, which is exactly why facilitating an environment of diversity and trust is a smarter choice. More ideas and perspectives help teams explore and debate new and exciting options, which would not have been on the table otherwise.
At Rastegar Property Company, we are proud to have one of the highest percentages of female employees for a private equity firm of this size within Austin, Texas. More than half of executive-level leadership represents different areas of diversity. Still, quotas don’t automatically mean inclusion. As a result, here are some of our favorite methods for promoting an inviting culture of respect.
Establish A Sense Of Belonging For Everyone
Leadership must openly ask for suggestions and ideas from everyone on the team. Whether that’s through staff meetings or one-on-one conversations, every team member should be encouraged to have a voice and contribute. Implementing a general channel on your Slack app, for instance, gives everyone on the team a chance to sound off on a variety of topics and industry news. This can also increase team productivity because people feel personally invested. The cost is very low, but the savings are tremendous, including lower turnover rates.
In addition, employee recognition programs can help promote a sense of belonging. Research shows if workers feel a sense of belonging and inclusion, they perform 56% better. One of our favorite ways to promote office camaraderie is to have employees ring a bell after they achieve a new milestone. Employee recognition drives results — a study shared in Harvard Business Review shows most employees go an average of 50 days without receiving recognition. If you expect people to work hard and achieve industry-leading results, then in return, you must recognize them and reward their efforts.
Maximize Joy And Connection; Minimize Fear
A culture of understanding should be ever-present within your organization. Management teams should openly communicate that it’s OK to make mistakes; just own them and try your best. By facilitating that level of trust and inclusion, businesses see a higher level of employee performance.
Good, honest and clear feedback is key. This creates a culture of productivity and innovation, with people willing to take smart and reasonable chances. High-trust companies regularly report around 74% less stress and 106% more energy at work.
Team Building In The Form Of Giving Back
A favorite way to help facilitate employee connection allows you to give back to the community. At Rastegar, for instance, our entire team looks forward to monthly volunteer day as we actively seek out a variety of organizations to serve. Activities like these give everyone on the team a chance to get to know one another better, helping to boost levels of inclusion. A volunteerism study from Deloitte found that 89% of people believe companies create a better work environment when they organize charitable projects.
Diversity And Inclusion Training
Regular training for diversity and inclusion is also key. An officer who is experienced in successfully promoting inclusion should be put in charge of overseeing your employee policy book. Having an executive team that buys into diversity and inclusion — both intellectually and emotionally — is crucial. A 2019 study found that companies with executives who are highly engaged in diversity are three times more likely to have a culture of innovation.
With deliberate and strategized steps, your team can make changes this decade that result in a stronger and diverse culture. Companies that promote inclusion see better results than their peers while promoting a happy work environment and cost savings through an increase in employee longevity.
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