The current business buzz is Artificial Intelligence (AI), and while there’s no doubt AI will disrupt the workplace going forward, people power will carry at least equal weight – especially so in society-centric industries like real estate.

If humanity learnt only one lesson from the pandemic, it’s that people are intrinsically social animals who need networks not only to thrive, but for emotional and psychological survival.

Current AI technology does a fair job of mimicking human intelligence, but it can’t duplicate the inherent empathy that underpins our emotional intelligence.

Humanity’s inability to emotionally bond with machines is key to understanding why people will remain crucial to corporate performance, notwithstanding the workplace disruption that AI is going to create.

Smart executives understand the importance of developing technology in conjunction with social capital and human capital to drive business growth – a three-pronged strategy particularly pertinent to the real estate sector.

Social capital has built the global property industry; connections are everything in real estate because it’s all about people and community.

If you break it down, property professionals are in many ways responsible for shaping the communities in which they live, work and manage assets.

The public benefits from property professionals’ expertise, while they in turn benefit from real estate investing. As such, community involvement is both a social and business imperative for all industry players – from listed portfolio managers to individual brokers – and networking is the key.

Strong relationships are the source of most leads and referrals – the further your reputation for positive community change spreads, the more successful your career is likely to be.

At company level, talent acquisition and retention strategies will grow human capital in the long term, but identifying the most skilled staff to head hunt for real estate success often comes down to the strength of social capital.

Is your business plugged in? Increasingly, it’s the social capital of who you know, not what you know, that counts.

A McKinsey report released last year on the correlation between networking and corporate performance noted that: “Social capital – or the presence of networks, relationships, shared norms, and trust among individuals, teams, and business leaders – is the glue that holds organisations together.

“When teams feel connected, they tend to get more work done and do it faster. When colleagues trust their managers and one another, they tend to be more engaged, more willing to go beyond minimum work requirements, more likely to stick around, and, as research shows, more likely to recommend that others join their organisation.

“Social capital matters to an organisation’s performance. Companies that build strong social capital internally, create an environment in which everyone wants to work for the greater good.”

At the same time, though, the McKinsey report noted a worrying decrease in business networking in the post-pandemic “new normal”, with only:

• 24% of the nearly 5 500 respondents focused on getting in touch with old contacts within their professional networks;
• 28% motivated to build new relationships; and
• 31% indicating intent to strengthen existing relationships.

These numbers are not the recipe for success, and should prompt all senior managers to investigate their organisation’s social capital status.

“Social capital” refers to the resources that individuals and organisations develop through their internal and external networks.

Networking can take many forms, such as attending events, participating in online communities or joining professional associations.

The more attention you give your network, the greater your access to new ideas, information and resources that contribute to personal career and broader business development goals.

Networking is not only about making connections but also about nurturing them, because this social capital provides access to talent and opportunities that might not surface through formal channels, such as property advertising.

A Harvard Business Review study found that executives who excel at networking are more likely to perform better, to be promoted faster and to experience greater job satisfaction. The study also highlighted the correlation between “connected” companies and profitability based on network-generated business leads, partnerships and collaborations.

Pointers for enhancing social capital skills in the real estate sector include:

• Being proactive: Take the initiative to reach out to others and establish connections.
• Building relationships: Networking is not just about making contacts, but also about cultivating relationships.
• Being authentic: Authenticity is critical to build trust and credibility with others.
• Giving: Be willing to help others, even if there is no immediate benefit to you.
• Being strategic: Identify individuals and groups that can provide the most value to your organisation and focus on building relationships with them.
• Building networks that last: Networking is not just about exchanging business cards and making small talk. It’s about building genuine connections with people who can help you and your business. Take the time to get to know people, understand their needs and interests, and find ways to add value to their lives and their communities.
• Following up: This is key to building strong relationships. Send a follow-up email or message after meeting someone new, and find ways to stay in touch and continue the conversation.

Decades of research support the premise that strong networks breed success.

Artificial Intelligence may therefore be the rambunctious new kid on the block making big waves in the corporate world, but it’s still an ocean away from unseating the network of people who power the heart of business.

Author's Bio: Greg Dart possesses decades of senior management experience in multinational business development across European, African and Middle Eastern markets. For the past eight years he has specialised in high-value real estate investment and strategic corporate growth at High Street Auctions, where he serves as an Executive Director.