Power Reads: 5 Interesting Articles That Will Help You This Week

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in leadership and the CRE world. They pull from one of four "corners": corporate real estate, technology, management science and anything positive. Each day we can become a better version of ourselves.

1. 3 Ways Companies Make Work Purposeful

In the aftermath of Covid-19, many companies have boosted pay, and offered greater flexibility in order to recruit and retain the best people. At some, senior leaders have attempted to inspire employees by emphasizing a corporate purpose or mission, in the same hope.

“But these initiatives haven’t had much impact on aggregate quit rates. The data shows that U.S. employee turnover was rising steadily before the pandemic and then spiked in 2021. Meanwhile companies that tried to attract people with promises of higher pay and/or greater flexibility are finding it harder to keep those hires: A recent Harris poll indicates that 20% of employees who left their jobs in 2021 to join other companies for those reasons now regret their decision.”

Sure, we want the basics.  We want to feel safe in the workplace, have the resources we need to be productive, be rewarded fairly, and have some flexibility in where, when and how we do our jobs. We like working for companies that take values seriously. But while these factors can make the difference between employees being satisfied or dissatisfied, they are not enough to drive high levels of loyalty and retention.

2. The Future of the Workplace

The COVID-19-pandemic caused a tectonic shift in where, when, and how we work, with significant implications for workers, employers, and buildings. McKinsey experts in real estate, people and organizational performance, and operations are collaborating to help leaders understand how the workplace is changing and how their organizations can best prepare for a vibrant future.

“Flexibility is the new amenity employees want—especially those in diverse groups—and will embrace if you offer it.”

The workplace needs a new purpose—and companies that clearly define it can unlock competitive advantage.

3. The ‘Great Resignation’ Started Long Ago

We’re in the midst of breath-catching revolutions in how America lives and works. Working from home, as an issue, is still shaking itself out, but its implications are huge. If an entire class of people who used to go to the office stay home, it will upend the commuter model on which modern cities are built, and on which they depend for revenue.

“Another great question has to do with the shortage of workers. You see this all around you. There aren’t enough people to fill available jobs.”

Retailers big and small struggle to find and retain employees. Beaches and pools can’t find lifeguards. Police forces can’t find young men and women to apply. The U.S. Army can’t find recruits. Doctors offices strain to fill a job when somebody leaves. Airlines are so short-staffed there’s no one to help you find luggage that’s been lost for two weeks. There’s no one to keep it from being lost. The other night a Midwestern city official told CNN, of the struggle to hire cops, “It’s like the American workforce vanished.”

4. Peter Linneman: CEOs Need To Do Their Jobs For Office To Make A Comeback

Peter Linneman has a simple motto that he operates under: Don’t bet against the U.S. economy. At 71, the economist, professor and researcher has held onto this motto through recessions, political turmoil, wars and countless other challenges to the economy, and he still believes it to be true to this day. 

“So on this week’s Walker Webcast, Walker & Dunlop CEO Willy Walker kicked things off by asking Linneman one question: What could go wrong? Linneman started off by drawing attention to his Zoom background, a picture of Niagara Falls. He said the most powerful waterfall in the world is an excellent analogy for the U.S. economy because, just like Niagara, what the economy achieves is stunning and it keeps going, even if at times it might be moving a little slower than others. ”

“The economy is 3.5% bigger than it was before Covid, before the social unrest, before the contentious elections — what a remarkable achievement,” Linneman said.

5. What History Teaches Us About Inflation And Commercial Real Estate

Despite the concern it generates, inflation has always been a natural occurrence in our economic cycle. Because of this, I believe investing in asset classes like commercial real estate, which historically outperform the market during inflationary climates, is one of the best ways for investors to diminish risk during this point in the cycle.

“As an investor in commercial real estate (CRE) for 28 years, I believe that by studying economic periods of the past, we can be better informed on how inflation is likely to affect our industry now. Because history, like CRE, is known to repeat itself, what happened decades ago can lend insight into today’s market.”

First, let’s look at economic policy and inflationary episodes of the mid-1940s and late 1970s/early 1980s and compare them to our current economy. Both earlier periods show patterns of inflation increasing and then decreasing, which is what other experts and I anticipate will happen soon.

Your success blesses others. I wish you a great and hugely impactful week!