by Ann Withanee — December 7, 2011—While the past recession was severe across the broader U.S. economy, it has been devastating for the construction sector, according to the recently released AIA Compensation Report from the American Institute of Architects. Understandably, the downturn in construction activity has affected those serving the industry, with architects being particularly hard hit.
The U.S. Department of Labor adds this negative note: Employment in architecture firms numbered more than 240,000 by end of 2007, but by the end of 2010, employment levels dropped to fewer than 156,000. Not surprising, the decline in demand for architectural services coupled with downturn in business conditions resulted in lower levels of compensation over the past three years.
Average total compensation for architecture positions—including base salary, overtime, bonuses, and incentives—”hardly budged” between 2008 and 2011, climbing a mere $1,600 over this three-year period. Contributing to this weak growth in compensation were salary freezes or reductions, decreases in hours worked, the conversion of full-time positions to part-time or contract positions, and mandatory furloughs or other unpaid leave. Many firms also reduced benefits offered to their employees.
Under certain conditions, the report offered a few positive notes:
- Compensation gains for architectural positions more than kept pace with other professions, increasing 32 percent between 2002 and 2011, compared to 27 percent for all professional and related staff.
- Most firms offer higher salaries to attract or retain desired credentials and skills. For example, more than half of firms offer a salary premium for a master’s in architecture degree (MArch), as compared to a professional bachelor’s degree.
- More than 70 percent of firms offer higher salaries for applicants or staff members who have successfully completed their architectural registration examinations and become licensed.
- Finally, almost a third of firms offer higher salaries for staff members with expertise in building information modeling (BIM).
- Most firms offer higher salaries to attract or retain desired credentials and skills. For example, more than half of firms offer a salary premium for a master’s in architecture degree (MArch), as compared to a professional bachelor’s degree.
The AIA Compensation Report, compiled from AIA’s survey of U.S. architecture firms, offers compelling information on the state of the profession and includes compensation data for 40 architecture firm positions in 29 states, 32 metro areas, and 12 cities.
