The latest data highlights key trends in AEC policies, emphasizing pay, remote work, and transparency for growth.
The key to growing your firm and reaching your strategic goals often rests with the quality of your employees, and the quality of your firm’s policies, procedures, and benefits is critical to hiring and retaining a top-notch workforce. Zweig Group’s 2024 Policies, Procedures & Benefits Report provides AEC industry leaders with industry statistics on policies and procedures, so they can support policy decisions with hard data.
Here are some of the key trends from the report:
- Budgeting for pay increases. A significant majority (89 percent) of firms budget for staff pay increases. The median raise among these firms was 5 percent last year, and this figure is projected to remain the same for the current year. While a 3 to 5 percent increase has traditionally been a safe benchmark, the current economic climate, increased workload due to backlog, and high turnover have prompted many firms to consider more substantial raises to maintain employee satisfaction.
- Significance of remote work and unique projects. In Zweig Group’s 2024 Policies, Procedures & Benefits Report, geographic location’s importance for attracting talent dropped significantly from 4.0 in 2023 to 2.8. This shift suggests a growing acceptance of remote work, making it crucial for firms to invest in virtual collaboration tools. At the same time, the appeal of interesting projects has increased from 4.0 to 4.1, highlighting the need for firms to showcase unique and challenging work in their recruitment efforts.
- Rise of formal compensation programs. More firms are adopting formal compensation programs, rising to 52 percent in 2024 from 48 percent in 2023, with 33 percent of employees now having access to this data. This trend toward transparency is critical for building trust and recruiting and retaining employees. Raises given at management’s discretion have decreased from 74 percent to 66 percent. A thorough formal salary/wage review process is the No. 1 method to determine raises. Moving to a structured salary review process can help motivate employees and maintain equity.
- Shifts in administrative practices. Regarding administrative practices, weekly timesheet collection has reduced from 82 percent to 73 percent, while biweekly collection has increased from 9 percent to 17 percent. Adopting biweekly timesheet collection can streamline processes and reduce administrative burdens. Workplace policies have also evolved, with 94 percent of firms now prohibiting gambling, up from 85 percent in 2023.
By understanding and proactively acting on these trends, firms can better position themselves to attract and retain high-quality employees. This approach ensures long-term success and growth, empowering you to steer your organization toward a prosperous future. Read the full report here!
Will Swearingen is chief data officer at Zweig Group. contact him at wswearingen@zweiggroup.com.
