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As recent as 10 years ago many major corporations' workforces were dominated by white males. Today, however, the ethnic and gender makeup of the workforce is evolving as the number of minorities in the US increases. As corporate America diversifies, corporate leadership is beginning to follow the trend. The real estate industry, however, is lagging behind: Less than 1% of the more than 100,000 people employed in the real estate industry are black. To increase diversity, corporations have focused on recruiting efforts to attract minority candidates. Once a company has successfully attracted and hired diverse employees, the work is not over. Retaining employees is something companies must commit to from the beginning. Most companies tackle retention by setting up mentor programs within the company. The mentor program at CB Richard Ellis pairs new employees with senior-level employees.

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As recent as 10 years ago many major corporations' workforces were dominated by white males. Today, however, the ethnic and gender makeup of the workforce is evolving as the number of minorities in the United States increases.

In 2005, the nation's minority population totaled 98 million or 33 percent of the country's 296.4 million residents, according to U.S. Census Bureau information.

As corporate America diversifies, corporate leadership is beginning to follow the trend. The real estate industry, however, is lagging behind: Less than 1 percent of the more than 100,000 people employed in the real estate industry are black, according to information from the Real Estate Executive Council, a national minority real estate consortium.

The industry is not ignoring the issue. Diversity has become an industry watchword, and real estate management companies are trying to catch up to the rest of the country's businesses.

"People say real estate is the last faction where, essentially, the walls have to come down," said Ron Whitley, chief diversity officer at Cushman & Wakefield, an international real estate services firm based in New York. "If you look back on the history of the industry, it has always been almost a closed industry in terms of networking and relationship building. That is starting to change, but that change is happening very slowly."

CHANGING FACE OF REAL ESTATE

Albeit a slow shift, the real estate industry has begun paying attention to diversifying the profession because of a sweeping demographic transformation in the U.S. workforce.

The white, working-age population is projected to decline from 82 percent of the workforce in 1980 to 63 percent in 2020, according to information from the National Center for Public Policy and Higher Education. During the same period, the minority portion of the workforce is projected to double. The Hispanic and Latino portion alone is projected to almost triple.

As the workforce changes, so does the clientele. Thus, many businesses recognize a diverse workforce is necessary to better serve existing clients and target new markets. A recent University of Illinois at Chicago study found companies with high diversity attracted almost 50 percent more customers than companies with low diversity.

"It is important to note our clients' faces are changing rapidly," said Heidi Stout, marketing manager for North America at Colliers International, a worldwide commercial real estate organization with U.S. headquarters in Boston. "Our clients [are] looking across the table at people, and they want to see people who reflect them. They want to see a variety of ages, genders and ethnicities."

MORE DIVERSITY, MORE INCOME

The University of Illinois at Chicago study also found companies with a racially diverse workforce tended to generate better financial results.

The average sales revenues of organizations with low racial diversity were approximately $3.1 million, compared to $3.9 million for those with medium diversity and $5.7 million for those with high diversity. Racially diverse companies were also more likely to report higher-than-average market shares and profitability.

Along with financial benefits, increasing diversity gives companies a competitive edge in strategic planning, industry experts said. Adding different opinions and world views into the mix brings new opportunities and alternative solutions to the surface. '

"If you have five white males in a room discussing a deal or an opportunity, I think there is some truth to the fact...concepts may be similar," Whitley said. "If you add diversity-whether through gender or ethnicity-to that process, the product is really going to come out better and stronger."

BREAKING THROUGH BARRIERS

To increase diversity, corporations have focused on recruiting efforts to attract minority candidates. However, industry experts said the real estate industry has a historic reputation of being uninviting to women and minorities.

CB Richard Ellis, a Los Angelesbased commercial firm serving property owners, actually looks outside the industry for its minority candidates. The company has identified other professions and occupations requiring the same skills and qualities necessary to become a successful real estate professional.

"You can reach out to Goldman Sachs and Morgan Stanley and recruit diverse talent that meets these specific qualifications, and we'll give them the real estate experience," said Jack Van Berkel, senior vice president of corporate human resources. "It is interesting because the real estate industry is the big unknown. People don't actually realize the upside potential and financial compensation rewards associated with being in this industry."

Another challenge for organizations is having candid conversations about diversity and breaking down the walls that keep people from entering the industry.

"If you haven't interacted with someone, you haven't worked with someone, and you don't have that trust level with someone that is different from you, how are you going to become comfortable tapping that person on the shoulder and saying, ? want you to become part of my team and part of my firm'?" Whitley said.

To start these conversations, Cushman & Wakefield is reaching out to minority professional organizations. Recently, a number of company leaders attended and presented at conferences for both the National Black MBA Association and the National Society of Hispanic MBAs. Through these efforts, Cushman & Wakefield leaders networked with minority talent and got the word out about their company to prospective candidates.

CLOSER TO HOME

In addition to outside recruiting, companies rely on internal recruitment efforts. Corporations may ask their minority employees to help find individuals they think would fit in with the company and would fit in with the culture, said Simon T. Bailey, senior vice president at Yesawich, Pepperdine, Brown & Russell, a brand marketing organization based in Orlando, FIa.

"If you have diverse employees that are already successful in the organization, have been there a while and have produced, then they know other individuals like themselves," he said.

Of course, organizations must approach this tactic sensitively. Some people are happy to be asked for input. Others might feel they are being treated as a token and used for recruiting purposes, rather than for their value to the company, Bailey said.

"Individuals can read between the lines if the organization is sincere," he said. "It all depends on

the person and the culture of the organization."

ATTENTION TO RETENTION

Once a company has successfully attracted and hired diverse employees, the work is not over. Retaining employees is something companies must commit to from the beginning.

"It is one thing to attract them, but it's another to retain them," said Shawn Desgrosellier, managing director for Kaye Bassman International, an executive search firm in Dallas. He works with the company's real estate and construction practice in the western United States.

Most companies tackle retention by setting up mentor programs within the company. The mentor program at CB Richard Ellis pairs new employees with senior-level employees. New hires then receive guidance on business planning, scanning the marketplace and picking areas of expertise from external coaches tied to the real estate business.

"People typically don't want to have stuff given to them. They want to have someone to help them out, and we give them that boost," Van Berkel said.

Cushman & Wakefield's mentor program focuses on ensuring an appropriate match between the employee and mentor. Rather than matching employees with managers or supervisors, Cushman & Wakefield matches new employees with colleagues they can relate to on a personal level.

The mentors help acclimate employees to the workplace, assist them with presentation preparation, offer feedback, answer questions and provide career-path guidance.

Such mentoring programs encourage employees to create personal development plans and career paths within the firm, helping them feel engaged in and committed to the organization. At the same time, they show employees the company cares about them and believes in their future with the organization.

Companies also work to create comfortable and inviting environments for women and minorities, which can be the hardest part.

"You can't control the environment," Van Berkel said. "All you can do is create an environment where diversity is promoted. All you can do is set that baseline."

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BIG COMPANIES, BIG INITIATIVES

Large real estate companies extend recruiting efforts and launch large-scale diversification initiatives

Some of the real estate's largest companies have taken great care to diversify their workforces, implementing ambitious programs taking time and resources, but adding value.

Colliers International recognized women are often the minority in many facets of the industry. Therefore, the company recently launched Women to the Helm, an initiative to recruit, retain, promote and train the best people and support and encourage diversity.

The company kicked off the initiative with a weekend retreat attended by 60 of the company's female leaders from throughout North America. During the weekend, they mainly focused on how to improve diversity at Colliers and make it a better place for women and minorities to work. The participants determined 12-month goals, set strategies to meet the goals and appointed different employees to lead each part of the initiative.

Meanwhile, Cushman & Wakefield, an international real estate services firm in New York, is an active member in Project REAP (Real Estate Associate Program)-an industry-backed, market-driven program that finds, trains and places talented and dedicated minority professionals with leading commercial real estate firms.

REAP, a 25-week course held one evening a week, helps train professionals on the elementary concepts and terminology of building and real estate management and emphasizes the role of management in increasing the financial return of an income-producing commercial property. Nearly 50 Project REAP associates have earned positions with firms that develop, lease and manage shopping centers and office buildings.

To be involved in REAP, interested minority professionals must have a bachelor's degree and three to five years of business experience. They must be residents of Metro Washington D.C., Atlanta or New York City. The program will open to Chicago residents in 2007 and Miami residents in 2008.

Being a sponsor of Project REAP helps Cushman & Wakefield maintain a strong presence in recruiting diverse talent, said Ron Whitley, chief diversity officer at the firm.

"This is a recruitment arm that brings people of color to the firm, brings talent to the firm and gives us an opportunity to tap into that talent," he said.

CB Richard Ellis' commitment to diversifying its workplace has resulted in a significant increase in minority employees, said Jack Van Berkel, senior vice president of corporate human resources at CB Richard Ellis. The company invites employees to contribute to diversity efforts through its diversity council, which includes mid- to senior-level managers and executives who help promote cultural issues, communication and diversity within the company.

"This is something these people have chosen to do because they want to," Van Berkel said. "[Creating diversity] takes years. It takes continual effort and an effort on the part of a lot of people."