2019 A/E Bonus & Benefits Benchmark Survey Report
Is your firm vulnerable to talent poaching by the competition?
Now more than ever, architecture and engineering firms need to work hard to keep their best talent. Your competitors are trying to build their teams just like you are. Don’t give your top-performers an excuse to hit the road by offering a bonus and benefits program that just doesn’t keep up with today’s standards.
The truth is scary
As you read this, the recruiters could very well be chasing after your star employees. That may be a scary thought. However, if your incentive compensation and employee benefits are best-in-class, you have nothing to worry about. But, what if you aren’t at best-in-class levels? That is when you do have to worry.
Base compensation is only half of the puzzle…
You may spend days or weeks of your time benchmarking base salaries every year to ensure that you are calibrated to the market. Great! But, that is only half of the puzzle. A very common mistake is to focus too much on benchmarking base compensation and nothing else.
PSMJ research has found that base compensation is driven largely by an individual’s experience and skill level. But, incentive compensation is driven by their performance…and this is where many A/E firms are in the dark.
Strong performers should be rewarded handsomely and mediocre or weak performers should be rewarded accordingly. Get this wrong and the good ones leave while the bad ones stay!
…but don’t overpay!
Your firm works hard to turn a profit and there are a lot of hands vying for a piece of that profit. Shareholders should receive an adequate return on their investment, the company deserves some level of reinvestment of profits, and employees must be rewarded for high performance. With everyone looking for a piece, it is easy to overpay in one area or pay out in a way that starves the company of cash flow.
Your current and prospective employees are already comparing your bonus and benefit levels to the competition…shouldn’t you?
PSMJ’s A/E Bonus & Benefits Benchmark Survey Report is so much more than a few data points on performance bonuses and health insurance. This report digs deep into exactly when, where, and how the A/E industry’s top performers are delivering on the promise to keep their top performers engaged and productive.
With this resource at your side, you can make high-quality decisions with reliable data on:
- Bonus levels and ranges as a percentage of total payroll
- Bonus levels and ranges as a percentage of company revenue
- Factors that drive bonus levels and eligibility
- Bonus timing and form to maximize impact and preserve cash flow
- Health insurance contributions
- Employee turnover rates
- Retirement plan contribution levels
- Performance and salary review models
- And much more!
In addition to data on a wide range of metrics, you also get PSMJ’s expert insight on how to use this data effectively to drive success…from allocating profits into “profit pools” to the right (and wrong) ways to reward owners for their investment. And, like any PSMJ benchmark survey report, the data is sliced and diced by firm size, type, and more.
Make it a no-brainer for your top talent to say "no, thanks" to the next recruiter that comes knocking!
Publisher: PSMJ Resources, Inc.
Date Published: 2019
Number of Pages: 329 pages
Format: Hardcopy & PDF
If you are interested in past years versions of this survey please contact firstname.lastname@example.org or call (617) 965-0055.