Referral incentives turn employee connections into one of your firm’s strongest recruiting tools.
It is no secret that finding high-caliber candidates in the AEC industry has been extremely difficult, especially since the pandemic began in 2020. Job security became a focal point for many employees, and employers recognized recruiting challenges and began implementing more benefits and perks to retain the top talent that is difficult to replace. There has been a specific emphasis on the lack of candidates at the mid-point in their career, due to the lack of professional services degrees being earned at the tail-end of the Great Recession.
According to Work Institute, “Each departure can cost your organization between 33% and 200% of the employee’s annual salary, factoring in recruitment, training, lost productivity, and more. For instance, replacing an employee earning $75,000 could cost up to $25,000 or more.”
These numbers are astonishing, especially considering the demand for higher starting wages for new candidates coming out of college, in addition to having to be competitive for mid and senior positions that could climb well into six figures. Kyle Ahern of Zweig Group wrote in his article, Zooming In, that the median overall turnover rate is around 13% across the AEC industry, according to the Recruitment + Retention Report. Whether you work for a 10 person or 1,000+ person firm, this number may have a significant impact not only on your bottom line, but on company culture, client retention, and future project opportunities.
To combat these challenges, Tamarack Grove Engineering has introduced a Recruiting Referral Bonus to incentivize the team to recruit industry peers. According to an article published by Disher Talent Solutions, the AEC industry pays recruiters an average of about 20%-30% of a new-hire’s first year salary. With average starting salaries increasing every year, this could mean paying a third party over $15,000 to find and place a single candidate. This is not to say there is no value in enlisting the help of recruiting firms, but the focus of this piece specifically is how to incentivize your people to recruit from their circles of influence.
Since 2020, TGE has had an open Recruiting Referral Program that offers any team member $3,000 in a referral bonus. It is structured so that the team member is awarded $1,000 at the start of their referred candidate’s time with the firm, and is awarded the remaining $2,000 upon completion of the 60-day probation period that is standard for the firm. The program has since evolved and has a tiered system, where other positions, such as administrative roles, are still awarded at a lower rate as they are not as difficult to come by as an experienced engineer in this case. Comparatively, $3,000 is still a substantial amount of money for a team member to receive, but it is significantly less than paying someone out-of-house.
Other than financial incentives for the team members, TGE also receives multiple benefits by hosting this open referral program. The first additional benefit to the team member is there are no limits on how many people a single person can refer and be awarded on. This continues to encourage the existing team to recruit the best candidates for the firm. Other benefits for the firm include a warm introduction, a higher chance of a culture fit, and insights into the candidate’s personality, skills, and knowledge. TGE lives by their mission (Building Relationships by Serving Others) and core values (relationships, servant leadership, joy, integrity, respect, and go beyond). The existing team has already bought into the bigger picture using this mission and these core values, and it helps when recruiting new candidates to align with the firm's identity.
In 2025, TGE’s growth rate outpaced the turnover rate, leading to the firm growing to nearly 50 people for the first time in its 22-year history. Part of the growth in the last five years has been a direct result of the referral bonus, with more than 25% of the current team being recruited by an existing team member. The power of a simple, but effective referral bonus cannot be overlooked as a meaningful method for recruiting in 2026. Just as the marketing and business development team in your firm needs the help of every person to provide a quality client experience, your HR team does as well when it comes to finding the right candidates. There is power in connection, as many within the AEC industry can testify through client and vendor relationships, but it is equally powerful when it comes to recruiting the right people for your team. With the opportunities of hybrid and remote work available to your firm, there is a stong chance that your next new hire is already connected to one of your employees.
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Duncan Robertson, CPSM, is director of business development and marketing at Tamarack Grove Engineering. Contact him at duncan.robertson@tamarackgrove.com. |