Introduction

With the rapid evolution of the PropTech industry, the dynamics of hiring and compensation are changing.

In episode 8 of PropTech Power Talks, we had the pleasure of speaking with Louisa Dickens, Co-founder of LMRE, and Tabitha Francis, Head of PropTech at LMRE. This article highlights the key insights from the podcast like hiring trends, salary report findings and the outlook for benefits in PropTech.

LMRE’s Expertise in PropTech

After four years of building a traditional Real Estate Recruitment consultancy, Louisa Dickens and Richard Lloyd established LMRE in 2018. It is the first worldwide PropTech recruitment firm that is solely focused on providing the top talent to the rapidly growing Real Estate Technology market. The company specializes in hiring for a variety of commercial roles including C-suite, business development, account management, marketing and more for PropTech, ConTech, and ClimateTech companies. Focussing on North America and Europe, LMRE builds strong relationships with venture capitalists, event businesses and partners. Louisa highlighted the importance of industry events like The London PropTech Show and podcasts in building ties and educating the community. 

Key Findings from the Salary Report

Louisa shared the much anticipated findings from LMRE’s recent salary report which highlighted one of the most significant trends which is the preference of employees for a hybrid work model, with 2-3 days spent in office as it led to higher employee satisfaction, engagement and lower turnover. This emphasized the need for businesses to adopt flexible working arrangements to the need for businesses to adopt flexible working arrangements to increase productivity. A concerning data point that women are paid less than men, on average, 17.3% less than men in the PropTech industry. Louisa underlined the importance of holding clients accountable in order to achieve equitable pay which despite much advancements is lacking. The report highlighted the critical role of corporate culture in attracting and retaining talent. Workplaces that put culture and wellbeing first are more valued by candidates. At LMRE, ensuring that new hires embody the company’s values has been essential to creating a motivated and cohesive staff.

Hiring Trends in PropTech

Tabitha Francis observed significant consolidation within role typology in the PropTech industry as companies are increasingly seeking employees who can fulfill multiple functions like account management and new business development in line with the general market trends. The desire for efficiency and flexibility is what is driving this shift toward occupations that are more adaptable.The hiring landscape has evolved since 2022 dramatically. There was a surge in hiring for product and engineering roles initially but as the market became more competitive, focus shifted to revenue-generating roles like account executives and sales team. The industry's reaction to shifting investment trends and economic conditions is reflected in this cyclical hiring pattern. 

Prospects for Bonuses, Equity, and Benefits

Louisa shared her thoughts on the future of PropTech’s equity bonus, and other perks. Higher-level roles are more likely to receive equity than junior positions, according to the research, which showed that 55% of respondents do not have equity in their organization. Companies must concentrate on providing competitive benefits, such as paid time off, healthcare, and flexible work schedules, in order to draw in talent. Benefits like gym memberships and transportation are less prevalent and depend on the location of the business.

Hiring Challenges in PropTech

Regarding the difficulties in hiring in the PropTech sector, Tabitha explained that the market is now client-led rather than candidate led. The market is more competitive as a result of this shift, which was driven by changes in funding and overall state of the economy. Candidates have the power to set their own pay rates during the PropTech investment boom. But the dynamics have shifted as the industry has plateaued.

The influx of layoffs in the industry has made it challenging for clients to find excellent talent. It is sometimes the consequence of budget limitations and more general industry changes rather than a reflection of subpar performance. This has created a larger pool of candidates while ensuring they select the right fit for their requirements. Tabitha highlighted that companies are increasingly looking for applicants who are adaptable and capable of handling a variety of roles. Companies must take a strategic approach to hiring in light of the trend toward consolidated jobs since they cannot afford to make poor choices. Because recruiting decisions have such high risks, they must locate candidates that offer a great return on investment.

The effect of technology on Traditional Real Estate Roles

Louisa Dickens and Tabitha Francis talked about how technology is changing the traditional real estate roles in PropTech organizations in our ongoing discussion on PropTech Power Talks. While there is frequent concern that technology, especially artificial intelligence (AI), could replace occupations, Louisa pointed out that this has not been the case. Rather, technology is expanding the roles and opening doors for those with real estate knowledge in business development, account management, and customer success.

By automating tedious activities, Tabitha said, AI and tenant engagement tools have greatly benefited property management companies, freeing up brokers and agents to concentrate on their core competencies rather than administrative work. In order to optimize their influence, she underlined the significance of making investments in efficient technology and making sure they are applied correctly. The industry should concentrate on sustainable digital investments that genuinely provide value, notwithstanding the hype around AI. 

Louisa did, however, highlight a problem: some real estate firms make technological investments without having the in-house expertise to make good use of it. The beneficial effects of tech investments may be hampered by this distance. Louisa and Tabitha both concurred that more work needs to be done to guarantee that technology is completely incorporated and utilized in the real estate industry. 

The Economic Environment and Hiring in PropTech

Tabitha gave a cautious but divided assessment of the impact of the present economic climate on PropTech hiring. Job possibilities in the sector have decreased as a result of economic instability and a reduction in investor confidence. Only 580 PropTech job opportunities were reported worldwide in mid-2024, indicating a slowdown linked to layoffs in the larger tech sector and limited expansion initiatives.

In order to save money and put profitability first, businesses are now concentrating on their core competencies, reducing the number of strategic recruits, and postponing expansion ambitions. Due to this change, there are now more rapid hires in key areas like technology and revenue development. Due to changes in the US market, historically more revenue-conscious regions like Europe and Asia have taken a cautious stance. 

There have been effective industry adjustments in spite of these obstacles. Some businesses have successfully negotiated the economic strains, using the circumstances to their advantage. Louisa emphasized a collaboration with Foundation Real Estate, which established the FIRE job board, which features 3,100 active job openings. Indicating a gradual but constant return on investment and employment prospects in the industry, this partnership seeks to assist those pursuing careers in PropTech. 

Conclusion

We thoroughly examined the effects of technology on traditional real estate positions and the economic variables affecting employment in PropTech during our conversation with Louisa Dickens and Tabitha Francis. Although it necessitates cautious investment and expert implementation, technology integration delivers significant benefits. Notwithstanding economic difficulties, the PropTech sector may gradually recover and expand with the help of smart adjustments. 

In order to draw and keep top talent, Louisa and Tabitha discussed the condition of hiring, salary trends, and perks. They emphasized the significance of flexible work arrangements, fair compensation, and a solid corporate culture. The recruiting trends and LMRE compensation report emphasize the importance of flexibility and strategic planning. 

The discussion also centered on using the pay report's insights to promote growth and advancement. Louisa emphasized tackling unconscious bias and closing the gender pay gap. She emphasized the necessity for a strong corporate culture that prioritizes ongoing learning and growth, as well as the need for more women in leadership positions and industry panels. These ideas were reiterated by Tabitha, who emphasized the value of varied talent pools and a smart hiring process. 

In order to succeed in the fast-paced PropTech industry, the conversation concluded by highlighting the necessity of addressing gender gaps, promoting inclusive workplaces, and using strategic hiring strategies. 

Watch the full episode here: https://youtu.be/N6N5zEag1Og