When it comes to A&E talent retention, money isn’t the only motivator
The financial health of an architecture and engineering (A&E) firm hangs on three vital threads. To remain competitive and strong, your A&E firm needs:
- Enough clients who prefer your firm and your people over the competition.
- Disciplined project management to help ensure steady billables and reimbursables.
- Process controls to prevent margin erosion and sustain a profitable multiplier.
The common thread across these lifelines is human. Your business depends on people and their commitment to the firm’s goals and values. Are they willing to invest discretionary effort toward your success? Is your firm a great place to work? Could staff be tempted to leave for an enticing signing bonus?
Money is important, but it isn’t the only motivator. To attract and retain a winning roster, A&E firms need to balance compensation planning and key cultural factors.
Compensation strategies for A&E firms
Owners have many creative options to financially incentivize long-term loyalty to the firm. Consider offering:
- A chance at ownership: The opportunity to earn an ownership stake in the firm — especially one that’s graduated and vests over time — can be a compelling reason to stay. This can take the form of an employee stock ownership plan (ESOP), defined stock option grants or phantom stock (also known as shadow stock) that tracks the value of actual stock without diluting ownership.
- Variable incentive income: Tie bonuses to a mix of service anniversaries and individual and project performance goals. For senior leaders, use bonuses to reward efforts to retain and motivate team members and to encourage cultural behaviors.
- Professional recognition: Licensed professionals invest significant time and money to maintain credentials and expand their knowledge base — which makes them attractive to prospective clients. Offer financial support for education, fellowships or sabbatical programs for top performers with long-term service commitments.
Culture promotes retention in A&E firms
Engaged employees tend to be less vulnerable to job-hopping offers — but it takes more than acceptable pay and working conditions to create job satisfaction. The people you rely on to deliver profitable, high-stakes jobs must also find meaning in their work.
How can you gauge the cultural health of your A&E firm? Ask these six key questions to find out what the work culture is like for employees:
- Do cultural beliefs and company values feel authentic to everyone in the firm?
- Do you have effective, two-way internal communication mechanisms in place?
- Can people see the impact of their work on your clients and in their communities?
- Do you offer enough opportunities for people to connect with each other?
- Do people have the autonomy to innovate and drive process improvements?
- Do people have attainable and worthwhile growth opportunities with the firm?
Skilled individuals want — and need — to be part of high-performing teams. Employees are more likely to stay in roles and with organizations that are supportive and collegial — where ideas are shared and discussed honestly and where everyone’s skills are appreciated and applied. That’s where culture comes into play.
How Wipfli can help
Compensation planning is part of a holistic approach to talent and organizational development. Our consultants can help you build high-performance teams and create compelling reasons for employees to commit to the firm. Contact us to learn more.
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