flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Buoyed by construction activity, architect compensation continues to see healthy gains

Architects

Buoyed by construction activity, architect compensation continues to see healthy gains

The latest AIA report breaks down its survey data by 44 positions and 28 metros.


By John Caulfield, Senior Editor | September 11, 2019
2019 AIA Compensation Report, Buoyed by construction activity, architect compensation continues to see healthy gains

Compensation for architects increased, in average, about 12% nationally from early 2017 to early 2019. Charts: AIA Compensation Report

   

The burst in construction spending over the past several years has been a boon to architectural firms, where as an industry payroll employment has grown by an average of 7,500 positions per year over the past six years. About 4,500 of that annual increase in staffing have been for architectural positions.

Demand for architects is reflected in the increased compensation that firms have been bestowing on hires and employees for recruitment and retention. In its latest Compensation Report, the American Institute of Architects (AIA) finds that average compensation across all architectural staff positions averaged in excess of $92,000 at the beginning of 2019, up more than 6% per year from early 2017 levels.

That increase, though, comes with a stinger: the last times architect salaries reached an increase of 6% per year—1999 and 2008—were either just prior to, or as the economy and the construction sector were entering, national economic downturns.

That being said, average architectural compensation has seen substantial growth beyond mere inflation over the past two decades. In 2019 dollars, average architecture compensation in 1990 was just over $70,000. The 12% increase over the past two years was twice the pace of growth in compensation for all workers in the U.S. economy, and 2.5 times the pace of all professional and related state, according to the Department of Labor’s Employment Cost Index.

 

Compensation gains for architectural staff have exceeded those for other workers.

 

The AIA Compensation Report is based on a national survey conducted by AIA and Readex Research earlier this year. Responses from 640 firms with 959 locations are broken down by 28 states, 28 metro areas, and 16 cities. The survey provides in-depth compensation information on 44 positions.

The survey finds wide ranges of compensation by metro and position. For example, the average base pay plus compensation for recent non-licensed graduates was $55,790 nationally. San Jose paid the highest ($65,900) and Pittsburgh the lowest ($45,800). However, the grads hired in San Jose were paying 38.5% of their compensation in rent, whereas in Indianapolis, rent consumed only 16.7% of their paychecks.

 

Architecture salary trends

Average architect salary increases during the last two years continued to be highest across senior- and executive-level staff. And salaries varied widely by company size. For example, the national average for the CEO/president position was $246,130. For firms with fewer than 10 employees, it was $170,436; for firms with 250 or more employees, $435,930.

The same pattern emerges for the Director of Design position: a $193,460 national average, $132,650 for the smallest firms, $235,200 for the largest. For a senior architectural staffer, the national average was $112,960, for smallest firms $82,170, and for the largest firms $128,660.

 

Architectural firms have been improving their employee benefits packages. 

 

Many positions, especially more senior architectural staff, continued to see an increase in the share of their salaries that is non-guaranteed (e.g., overtime, commissions, bonuses, incentive pay, profit sharing, retirement benefits paid, and other cash compensation) versus guaranteed (i.e., base pay). Managing principals now have the largest share of their salary as non-guaranteed pay compared with the other architecture/design positions, with the largest percentage point increase from 2017 in the share of non-guaranteed pay from 28% in 2017 to 42% in 2019.

 

Related content: Top 150 Architecture Firms for 2019

 

In general, firms are improving their benefits packages. Ninety-five percent of firms offer medical coverage to their employees, and 91% offer defined contribution retirement savings plans. Seventy percent offer paid time off for exams and other professional development. But only 41% offer paid parental leave.

Many firms report that in 2018 they encouraged diversity in hiring and actively engaged in steps to enrich their firms’ culture and retain employees throughout different life stages. For example, 36% conducted a salary equity assessment by gender and/or race, and 80% indicated that they have specifically hired, promoted, and/or mentored employees with diverse backgrounds.

Related Stories

Architects | May 8, 2018

WeWork names BIG’s Ingels as its Chief Architect

He’ll be plenty busy working with a company that has aggressive growth ambitions.

Architects | May 8, 2018

Illinois Office of Tourism unveils new Frank Lloyd Wright Trail

The trail stretches from Rockford to Springfield.

Architects | May 3, 2018

Designing innovative solutions for chronic homelessness

What’s stopping us from creating more Permanent Supportive Housing? 

Architects | Apr 27, 2018

4 reasons to pursue speaking engagements

We found speaking engagements were among the top ten marketing techniques that AEC firms employ.

Office Buildings | Apr 19, 2018

From fitness to bowling alleys: How commercial office buildings are differentiating themselves through amenities

Here are five ways that amenities can help developers and building owners attract and secure tenants by appealing to their inhabitants.

Architects | Apr 19, 2018

Perkins Eastman and Dougherty announce intent to merge

Combined practice will create expanded capabilities for K-12, higher education projects in California.

Architects | Apr 17, 2018

Cannon Design expects merger with gkkworks will help streamline its deliveries

The combined firm reinforces its presence in the western U.S.

Architects | Apr 16, 2018

Is the AEC industry ready to shake off its retrograde image?

Technology has been and always will be perceived as a source for wonder and worry.

Architects | Apr 10, 2018

HOK names a physician as its new Chief Medical Officer

Dr. Andrew Ibrahim will collaborate with the firm’s medical planning and design teams.    

Architects | Apr 5, 2018

AIA grants $100,000 to four Upjohn Research Initiative projects

The purpose of the grant is to provide base funds for applied research projects that will advance the design profession’s knowledge and practice.

boombox1
boombox2
native1

More In Category




Government Buildings

One of the country’s first all-electric fire stations will use no outside energy sources

Charlotte, N.C.’s new Fire Station #30 will be one of the country’s first all-electric fire stations, using no outside energy sources other than diesel fuel for one or two of the fire trucks. Multiple energy sources will power the station, including solar roof panels and geothermal wells. The two-story building features three truck bays, two fire poles, dispatch area, contamination room, and gear storage.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021