The Architecture Engineering (AE) and Environmental Consulting industry is poised for another strong year in 2023, according to a recent survey conducted by management consulting firm Morrissey Goodale. The survey, which gathered insights from 200 AE firm executives, revealed that 70% of respondents anticipate that 2023 will surpass the successes of 2022, which was a record-setting year for many firms in the industry.
One of the primary constraints on performance identified by respondents was talent acquisition and retention, with 77% of those surveyed highlighting this as a key concern. To address this issue, AE firms are expecting to increase salary compensation, with over half of respondents (55%) planning salary increases of between 6% to 9%. Additionally, 41% of firms are budgeting raises of between 1% to 5%, while a smaller percentage (3%) plan on salary increases of 10% or more. The survey also revealed that bonuses may not increase at the same rate as they did in 2022.
The survey also provided insights into how different types of AE firms are approaching salary and bonus increases for 2023. Architecture and AE firms are planning for lighter raises in the 1% to 5% range compared to their Engineering and EA peers, who are budgeting 6% to 9%. Furthermore, a greater percentage of larger firms with 1,000 employees or more are budgeting in the 1% to 5% range compared to their smaller peers. Surveying and Mapping firms anticipate a 6% to 9% increase in bonuses this year.
Regarding bonuses, nearly half (48%) of respondents expect the bonus environment to be similar in 2023 to 2022, while 10% expect lower payouts and 42% anticipate spending more on bonuses in 2023 compared to the previous year.
Mick Morrissey, managing principal at Morrissey Goodale, emphasized the need for AE firms to make investments in securing talent to meet both short-term and long-term needs. “The winners will be those firms that make the investments needed now to secure the talent to meet short-term production needs and longer-term leadership development and firm transition initiatives,” said Morrissey.
Morrissey Goodale LLC, headquartered in Natick, MA, is a leading management consulting firm to the AE and Environmental Consulting industry. They can be reached at 508-254-3914 or on the web at http://www.morrisseygoodale.com, with additional offices in Denver, CO, Chicago, IL, Irvine, CA, Rochester, NY, Houston, TX, and Atlanta, GA.
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