The Leader - May/June 2008 - (Page 40)

G lo B a l i n n o v a t o r ’ s a W a r D W i n n e r real e stat e ManaGeMent Work Force Longevity Analysis: Assessing Future Labor Market Risks for Corporate Real Estate BY kristin BeattY A s leading Corporate Real Estate (CRE) organizations increasingly refine and enhance their strategic contributions to their organizations, many are proactively seizing the opportunity to align their company’s real estate portfolio strategy with labor considerations. The availability and sustainability of a labor force can often direct a corporation’s workplace and real estate strategy as well as determine whether they should expand, maintain or consolidate operations in a given market. Making the right decision in each market can help assure long-term success by enhancing the company’s revenues, reducing costs, and improving operating efficiencies and customer satisfaction. A false step could result in competitive disadvantages, lack of labor supply, reten- tion or recruiting pressure – all leading to increased costs for the company. CB Richard Ellis’ (CBRE) Workforce Longevity Model is a unique, sophisticated supply and demand model designed to help CRE, Operations, and HR organizations to examine the sustainability and positioning of labor force across their portfolio. The tool can be used for expansion and consolidation strategies, skill set optimization, wage and turnover positioning, capacity planning, lease term justification, as well as merger and acquisition evaluation. This allows both CRE and Operations to prioritize the viability and urgency of their location strategy. HoW Does tHe WorkForce lonGevitY MoDel Work? CBRE works with Operations, HR and/ or CRE to understand the current or expected labor supply in each market. This customized analysis is based on each client’s desired skill set. CBRE benchmarks over 785 occupations, including wage and employment levels for every city with a population over 10,000. This comprises 3,765 markets that can be customized by radius and size to understand the true labor force supplying an operation. Strategically aligned CRE professionals hear more than Operations’ questions – they are anticipating how their advice and portfolio strategy can affect the company’s bottom line: n Which market is best positioned to handle customer service and has the sustainable labor supply to support our growth? n We are operating well in this market. Outside of floor capacity, does this market have the labor supply to expand in this market or will we can- tH e le aDe r 40 MaY / j u n e 2008

Table of Contents Feed for the Digital Edition of The Leader - May/June 2008

The Leader - May/June 2008 Leadership Contents Message from the CEO Real Estate in the News Green Real Estate Work Without Boundries Building Flexibility Into the Business Strategy Multi-Generational Work-Force Design Work Force Longevity Analysis Wells Fargo's David Nelson Pennsylvania's Michael Rossman Globalization 2.0 Site Selection Consultant Directory The New York Report: A Core of Traditional and State-of-the-Art Opportunities Discovery Forum Findings Industry Tracker Young Leader Career Development Effective Leadership Economic Development in the News A Look Ahead In Our Next Issue Calendar of Seminars Index of Advertisers Executive Development Spotlight

The Leader - May/June 2008

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