The Macdonald & Company Salary, Rewards and Attitudes Report 2022

As we emerge from the lasting impact of the global pandemic and navigate the lasting changes that now shape how we work and our career values, we continue to be able to report the findings from our annual Salary, Rewards and Attitudes survey. The survey remains the reporting benchmark of remuneration and attitudes across the international real estate industry, referencing over 5000 international salaries and over 7500 survey respondents.

Now in its twenty-second year, I am pleased to be able to present this insightful data, including respondents from the United States and Sub-Saharan Africa for the first time.

We are grateful for our participants taking their time to complete the survey, providing information on how much their remuneration packages have evolved and how working in Real Estate measures up today. The report offers a robust overview on how the industry has evolved, providing clarification on market trends for professionals and organisations.

The overriding theme this year is one of a vastly changed landscape, powered by both leaders and teams working together to endorse a brighter workplace.

The Macdonald & Company Salary, Rewards and Attitudes Report 2022

Advances and sentiments

Amidst the disruptions in the workplace, it is encouraging to see that 6 in 10 feel valued in their roles, out-performing the figures reported in 2019 where half of professionals didn’t feel as valued before the pandemic. We are pleased to find that many leaders in our industry have successfully emerged from the disruption caused by the pandemic and succeed in ensuring their teams’ well-being and comradery have been prioritised.

Remuneration continues to closely rank alongside desiring culture-fit in the workplace and a better work-life balance, namely in the form of flexible working when reporting both what we value in our current roles and what seek from new employers. After salary level ranked at number 3 of 14 categories, being shown appreciation by management and colleagues (ranked 4 and 5 respectively), followed by the quality of work and being able to make a difference illustrate some of the ways work-life balance and a sense of value can be fostered. The theme of work-life balance in the form of flexible working is further reinforced whereby 57% of organisations have permanently made changes to staff working-practices, more so in the UK at 66% than the U.S. with 42% of workplaces.

Peter Moore, MRICS

CEO of Macdonald & A

It's extremely important in those early years to find a mentor or find someone you can speak openly to, whether that's in your company or external. Share your challenges and go to them with choices: 'which one would you pick if you were me, A, B, or C?'. You'll quickly realise that there are a lot of people out there who want to see you do well.

Three-quarters of Real Estate companies are offering flexibility working locations with 4 in 10 respondents stating they have complete autonomy in where and when they work. Of those that have had to adapt to differing working-styles, 72% have found the changes beneficial. It is important to note, however, that graduates and entry-level employees hold an opposing view whereby 2 in 10 don’t believe the lack of time in the office amongst peers has been a benefit to them.

We find that as sentiments evolve, it has never been more important for organisations to retain and uplift their reputation and values as this has become closely followed by nearly half of respondents (48%). The average time spent with an employer has decreased by 10% this time last year as half of respondents say it is likely they will move jobs in the next 12 months. This is most apparent for our European (61%) and African (62%) respondents, compared with the UK (42%) and U.S. (41%).

As we further lean on relationship-building and making connections, results have shown that new roles were found by recruitment consultancies / headhunted (43%) followed by personal networks (27%). This is particularly the case for more senior-level professionals (42%), although we find those from a non-white ethnic background benefit from these methods less so in comparison to their counterparts. It is important to be mindful that we do not allow established inner-circles become exclusionary to minorities and hamper the encouragement of diverse teams.

On a positive note, two-thirds of respondents believe their employer is likely to increase headcount in the next year, showing signs that the industry is ripe for growth and eager to resume upward business trajectory. However a very similar number also believe their organisation will face a skills shortage indicating the need for development, training and apprenticeships.

Salaries and Rewards

Key findings show that median salaries globally have increased with uplifts not seen since as far back as before the global financial crash in 2008. Where we had witnessed salaries and bonuses lack movement, and in some instances decrease at the height of uncertainty the previous two years, we can report 52% of those in real estate received a base salary raise and 68% receiving a bonus/commission in stark contrast of last year where we saw numbers totaling just 13% awarded a pay rise and two-thirds of bonus negatively impacted.

The UK median salary has increased by 15% to £57,500; Europe has seen an increase of 6% to €85,000; Asia up 8% to $96,000; Middle East up 9% to $114,200. Pay freezes were apparent in many cases during the pandemic, and as the industry excels, pay rises have come as a result of over due annual pay reviews / promotions (65% of respondents) with a an average uplift of 7% in base salary increase. Those that moved job roles to a new employer saw a 17% pay rise on average.

Astonishingly, those that received the highest increase in base salary were awarded 22% more pay as a result of their employer counter-offering after a resignation had been tendered. On closer examination, those in the U.S. and Africa had the average counter offer see their salary rise by a third.

Globally, we see median salaries for males at $94,800 and females $67,000 showing a gap of 34%, widened from a gap of 31% on last year, though we recognise the inclusion of the United States and South Africa in our report may have skewed the data. On the flip side, we see the pay gap between ethnic background make vast improvements with the median pay for those from a white-ethnic background coming in at $94,800 and those from a non-white ethnic background at $85,950 with a gap 9%.

To close, real estate has not only proven its resilience, it has demonstrated a positive outlook for 2022. If our global survey of thousands in real estate is anything to go by, we can look forward to modernised, inclusive and well-rewarded workplaces in our industry.

Hear the career advice and journeys of those leading in their sectors, from Development and Architecture to Funds and Asset Management, in our Accelerating Careers in Real Estate series.

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