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DesignIntelligence

Human Resources
Benefits Analysis
Regional Design Professional Salary Data as
Reported by Todays Leading Firms
Trends in Compensation
Design Leadership Roundtable

2007-2008
Compensation and
Benefits Survey

MARCH 2007
VOL. 13 NO. 3

Value Redesigned:
New Models for Professional Practice
Architects and engineers can be the preeminent value creators of the
21st century. This remarkable book presents an in-depth look into
a potential future that reveals a vivid landscape where progressive
models for professional practice are already beginning to flourish,
showing firms avenues of escape from the vicious cycles of commoditization and low prestige epidemic within the architecture and
engineering communities. Aligned with the dynamics of the emerging knowledge-based economy, these new models of practice offer bold value propositions,
combining new ways of creating value with innovative pricing strategies.
Value Redesigned explores the adaptive challenges firms face as they move into the
future and offers guidance for the difficult transformational work required for genuine
success, including how to implement new strategies for value creation and compensation,
and develop the social and leadership capacities essential to success.
Kyle V. Davy, AIA and Susan L. Harris, Ph.D.
$39.50
429 pages ~ Paperback ~ March 2005
ISBN: 978-0-9755654-1-4

Leadership by Design:
Creating an Architecture of Trust
Ambassador Richard Swetts groundbreaking book investigates the
unique civic leadership strengths of the architecture profession. Drawing upon the compelling history of the profession, both past and present, as well as from his own singular experience as the only architect
to serve in Congress during the 20th century, Swett has produced an
insightful volume that is both inspirational and instructive. He shares
Mark Twains view that if the only tool you have is a hammer, after
a while every problem begins to look like a nail. Leadership by Design is an eloquent plea
to architects, leaders, and citizens alike to expand their tool chest as we seek new leadership
to design solutions for the complex challenges facing our nation and the world.
Richard N. Swett
$39.50
400 pages ~ Paperback ~ February 2005
ISBN: 978-0-9755654-0-7

800.726.8603
www.greenway.us

25 Technology Parkway South, Suite 101


Norcross, GA 30092

MARCH 2007
VOL. 13 NO. 3

CONTENTS
Shaping a New Agenda for People and Professional Practice

James P. Cramer

Survey Methodology

Criteria for Professional Advancement



Harvey B. Gantt and Jeffrey A. Huberman

11

National/Regional Salary Analysis: Non-Technical Staff

18

Intern Salary Analysis: 2007/2008

22

Comparative Benefits Review

24

National/Regional Salary Analysis: Technical Staff

26

Leadership Roundtable: Three Firms Discuss a Changing


Benefits and Human Resources Landscape

38

Global Salary Review: Architect Employee Salaries

40

National/Regional Salary Analysis: Executive Staff

52

Target Bonus: Executive Staff

58

Meritocracy and Ascension: The Pursuit of World Class Performance 59



The Greenway Group
Target Bonus: Technical/Non-Technical Staff

65

Economic and Compensation Analysis for Select Federal Reserve


Districts

66

Association Executive Salary Summary

76

National Faculty Salary Survey


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DesignIntelligence is published by Greenway Communications LLC, for the Design Futures Council, a
Washington DC based think tank exploring trends, changes, and innovation in the AEC industry.
DesignIntelligence Copyright 2007. Photocopying for distribution without written permission violates copyright law.
Report 208: Vol. 13 No. 3; March 2007
Additional copies are available by calling 800.726.8603
PDF downloads are available through www.di.net

MARCH 2007
VOL. 13 NO. 3

Shaping a New Agenda for


People and Professional Practice

James P. Cramer

The transformative power of good design is not limited to


buildings, products, and processes alone. Consider for a moment
the design of human resource practices and policies. Since design
is essentially an exercise in opportunity actualization, it follows that
good design is also smart practice management. Its an investment,
perhaps the most powerful investment to realize the potential of
todays AEC organizations. World-class levels of human resource
management are attainable and are increasingly surpassed by
leading firms and organizations. What these trailblazers share is
not just pace setting policies and practices but the nature of the
implementation itself.

artners and practice managers


can go about human resource
management the wrong way.
Some of these firms, year after year,
employ flawed or erroneous paradigms
for working through their people
issues. In essence, they unintentionally
de-motivate not only the individuals
themselves, but the entire culture of the
firm. Over time this leads to a significantly under performing culture. As
this dilemma unfolds without intervention, the most talented people depart
for other organizations.
A firms management should be actively
involved in the improvement, change

and growth of the organization. This


is the work that can defy obsolescence.
Through the choices that are made;
through the thinking process; through
the actions; through the insights the
leaders of a firm have the capability of
facilitating either evolution or devolution. Some firm leaders instinctively
know what to do; others need to be told
what to do. The future is too important
to leave to those who want to maintain the status quo. The challenge is to
bring out the best in those who work in
the organization and to regenerate this
phenomenon continuously.

MARCH 2007
VOL. 13 NO. 3

Some talents in an organization are


bigger than the office allows. Its a
little like someone measuring six feet
tall being asked to work in an office
with five-foot ceilings. Organizations
need to be relational and adaptable to
accommodate and encourage people
with high performing characteristics.
At one of our organizing meetings of
the Design Futures Council, Jonas Salk
talked about the fundamental units of
order. He called them dynamic, interactive, asymmetric, and binary. He told
of the math example where 1x1 = 1 but
how 1+1 = 2. Then he talked about this
example in a firm of 100 and how the
math could be run to show the binary
relationships and how unity and diversity can work together. He explained
why and how there is logic to the magic
of collaboration of human events in a
firm. He would stress that a firm should
NOT try to achieve uniformity, but
instead the unity of diversity. In practice
management, unity = solidarity and
high- performance, said Salk. Where
there is commonality of purpose, there is
desire to achieve an epidemic of success
a common force.

In this issue of DesignIntelligence,


we are seeking to provide you not
just statistics and data but insight on
human resource management and
compensation policies. There are two
adages that come to mind as we put
this issue together for you. The first is:
you cannot manage what you do not
measure. The second is: what gets
measured gets accomplished. Practice
management leaders today should see
that the human resources in their organization are its top priority. No matter
how good an organizations human
resources are today, they can become
even stronger tomorrow. World class is
being redefined. Every service firm can
be dramatically reformed for the better.

James P. Cramer is editor of DesignIntelligence,


co-chair of the Design Futures Council, and
chairman of the Greenway Group. His latest
book, The Next Architect: A New Twist on the
Future of Design is now available through the
DesignIntelligence bookstore, www.di.net.

MARCH 2007
VOL. 13 NO. 3

Survey Methodology
From January through early February, 2007, the Design Futures
Council surveyed leading firms believed to be best practices
in architecture on the subjects of compensation, benefits, and
bonuses. Surveys were distributed and received via fax, postal
mail, email and through a proprietary online survey tool.

irms participating in the research


represent 463 offices with headquarters locations in 61 cities
across the continental United States.
Firms of all sizes (smallless than 20;
medium21-100; large101-500; and
extra-large501 or more) participated
in the survey. Collectively, these firms
employ more than 76,000 employees.
Not all firms answered all questions.
Participating firms were informed that
all responses would be kept in strict
confidence by the Greenway Group,
Inc., the organization administering
the research on behalf of the Design
Futures Council.

Key drivers for this compensation


and benefits research were to obtain
quality data from the nations leading
firms and to keep the surveys relevant,
sophisticated and brief. The research
administrators independently collected
completed surveys and detached

identifying cover sheets from the survey


responses to assure confidentiality. All
data was compiled, aggregated, and
organized so that no firm or individual
could be identified.
An officer from each participating
firm signed and dated the completed
questionnaire listing their position and
responsibility in the firm; Greenway
Group validated the authenticity of the
responses. Firm responses collected
through a proprietary online survey
form were confirmed through access
tracking tools and telephone confirmations; all responding firms submitting
responses online were invited to participate; approximately half of all respondents utilized the online survey tools.
The average response time for the survey
was 29 minutes, 17 seconds. Responses
from outside North America are not
included in the summary reports.

MARCH 2007
VOL. 13 NO. 3

Survey Participants

76,000 Employees, 463 Offices with Headquarters in 61 Cities


Firm Growth Rates in Revenue 2006
0%
1-4%
4-6%
6-9%
9-12%
12-15%
15-18%
18-20%
More than 20%
No Answer
0

10

15

20

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Services Offered by Survey Respondents


Architecture
Engineering
Interior Design
Planning & Urban Design
Landscape Architecture
Industrial Design
Graphic Design
EGD/Placemaking
Lighting
Branding
Medical Planning
Research
Industrial Engineering
Structural Engineering
Parking
Transportation
Environmental Services

Lighting

Industrial
Design

Engineering
Architecture
Landscape
Architecture

20

40

60

80Planning100
&
Urban Design

Graphic
Design
Interior
Design

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

A wide range of respondent firms participated in the 2007-2008 Architects and Designers Compensation, Bonus,
and Benefits Survey and Analysis, conducted by the Greenway Group in early 2007 on behalf of the DFC.
Survey respondents were asked to check the range of services offered by their firm. Some organizations in
the survey offer strictly architecture-oriented services, while others provide a wide range of multi-disciplinary services, ranging from engineering and planning to branding and graphic design.
The respondent pool, while heavily concentrated in the areas of architecture; interior design; planning and
urban design; landscape architecture; and graphic design, represents a viable sample of professional salaries
for the range of all positions analyzed in the survey. Some salary variances will be manifest in organizations
exclusively providing services in the underrepresented disciplines, and more comprehensive, disciplinespecific analyses should be consulted in conjunction with this survey to gain a more comprehensive understanding of compensation for these positions.

MARCH 2007
VOL. 13 NO. 3

Cost of Living Comparison


Birmingham AL
Juneau AK
San Francisco CA
Denver CO
Orlando FL
Atlanta GA
Boise ID
Chicago IL
Indianapolis IN
Des Moines IA
Wichita KS
Slidell - St. Tammany Parish LA
Boston MA
St. Cloud MN
St. Louis MO-IL
Albuquerque NM
New York (Manhattan) NY
New York (Queens) NY
Raleigh NC
Cincinnati OH
Portland OR
Philadelphia PA
Memphis TN
Dallas TX
Richmond VA
Milwaukee-Waukesha WI
0

50

Source: ACCRA Cost of Living Index

100

150

200

250

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MARCH 2007
VOL. 13 NO. 3

Benefits Offered Full Time Employees Non Owners


Medical/Dental/Life
Flexible Spending
Vision
Long-term Disability
Short-term Disability
Maternity
Pension
401-K, Sep IRA
Association Dues
Education Reimbursement
Other *

98%
77%
52%
89%
66%
53%
16%
97%
85%
76%
5%

* Other: Parking, Design Study Tour Abroad, Other Profit Sharing,

3% Retirement Trust, Cancer Insurance, Free Lunches on Thursdays,


Transit Check, Death in Family, Paternity Leave, Additional Life Insurance,
Back-up Daycare, Long Term Care Flex, Comm. Service Organization Fees,
Commuter Subsidy, LEED AP Exam, Fitness Subsidies
DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Criteria for Professional Advancement


Harvey Gantt and Jeffrey Huberman

Consistent client satisfaction is the goal of any firm. Gantt


Huberman Architects of Charlotte, NC, has attained this goal,
achieving a long-term repeat client base; a reputation for quality
and innovation; and recognition by the local AIA chapter for a
verifiable level of satisfaction for a period of at least ten years.

ow this level of consistent


satisfaction and client retention is reached stems from the
management style of the organization.
The founding partners Harvey B.
Gantt, FAIA, and Jeffrey A. Huberman,
FAIA of this mid-size Charlotte, NC,
architectural firm, one of the oldest
in the state, in business for 36 years
maintain a management style which
in their words, illuminates and supports peoples lives. Their style is not
confined to architectural practice alone.
Both firm leaders are deeply involved in
community activities, with Gantt serving two terms as mayor of Charlotte,
and Huberman serving as president
of the AIA North Carolina, president of the North Carolina Board of
Architecture, and, currently, as a member of the NCARB board of directors.

In order to maintain this level of


consistent performance for the firm,
and true to the firms philosophy of
having a lasting impact on the way
people learn, live, work, and play,
Gantt and Huberman felt compelled
to develop a clearly defined path for
younger staff members to become
partners, as well as a clear criteria for
professional advancement. With the
help of the Greenway Group, the firms
mission statement was clearly defined
and applied the following criteria for
professional advancement; the criteria
matrix was developed and distributed
to all members of Gantt Huberman
Architects as a guide to growth.
By defining a clear path of expectation, responsibility and interaction,
by promoting community involvement and development outside the
firm, and by employing the Gantt
Huberman Architects mission to

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MARCH 2007
VOL. 13 NO. 3

provide great buildings and memorable


places that satisfy our clients and inspire
the community in an environment that
attracts and fosters the very best talent, the firm has managed to truly

empower the staff to new levels of success, thereby ensuring the continued
development of space, place and community within and beyond the firm.

Criteria

Architect/Interior Designer

Associate

Firms Values,
Policies, and
Culture

Understands and supports the


values, policies, and culture
of the firm

Understands and fully supports the firms


policies, values, and goals, and works with
members of the firm continuously to
reinforce them

Professional Ethics

Demonstrates high professional


and personal ethics

Always demonstrates high professional


and personal ethics

Management and
Operations

Developing and maturing to an


understanding of the operations
and business management of
the firm

Understands clearly the firms organizational


structure, and has demonstrable leadership
skills to assume some management and
operational responsibilities

Has the capacity to successfully


manage one to two projects
concurrently

Has a clear understanding of how the


firm operates and the factors necessary to
achieve financial profitability

Works closely with senior firm


members to understand the
principles of achieving firm
profitability

Has capability to successfully manage


multiple projects concurrently

Demonstrates willingness and


capacity to develop design and
technical skills to a high level

Continually demonstrates a high degree of


design skills and/or technical competence

Design Skills
and Technical
Competence

Continually improves skills through


research and further continuing
education opportunities

Through education and research, develops


an expertise in some aspect of architecture
beneficial to the firm

MARCH 2007
VOL. 13 NO. 3

Criteria

Principal

Partner

Firms Values,
Policies, and
Culture

Works closely with firms partners


to support and reinforce the firms
policies, values, and overall culture

Establishes, demonstrates, and reinforces the


firms policies, goals, and culture in an
environment conducive to sound business practice

As a leader in the firm, expected to


provide positive and critical input to
partners on policies

Willingly seeks input from principals, associates and


others to make adjustments and change in policy
to ensure currency with sound business practice
Is primary and final decision maker for adjustments
or changes to firms values, policies, and culture

Professional Ethics

Always demonstrates high


professional and personal ethics

Always demonstrates the highest professional


and personal ethics
Takes appropriate action when performance of
others in the firm suggests less than adequate
compliance with norms of professional and
personal ethics

Management and
Operations

Member of the firms senior


management

Primary responsibility for the long and


short term management goals

Provides significant leadership and


supports the firms management
and operations

Responsible for ensuring that sound business


management principles lead to profitability

Expected to understand the business


plan of the firm and the basic priorities
to achieve financial profitability
May be expected to manage certain
areas/departments of the firms
operations as the need arises

Design Skills
and Technical
Competence

Has displayed continuous and


demonstrable leadership in the
area of design and/or technical
proficiency
Has demonstrated excellence in an
adjunct area of architecture and
professional practice and has
become a leader or specialist in
some area of architectural practice

Responsible for communicating the firms


business management principles to firm members
Final decision maker on the firms long- and
short-term investments to maintain viability
and profitability

Has demonstrated a very high level of technical


and/or creative skills and commands the respect
of peers and associates
Is expected to be the intellectual leader in ensuring
that a high degree of creativity and technical
competence becomes a part of the firms DNA,
ensuring an identifiable brand of excellence
Final decision maker on all projects related to
design quality and technical adequacy

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VOL. 13 NO. 3

Criteria

Architect/Interior Designer

Associate

Marketing and
Project Development

Works to develop skills in retention


of existing clients

Expected to promote the firm and its


work, to retain existing clients, and to seek
new clients

Expected to promote the firm and


its work, and to take advantage of
opportunities to bring new work
to the firm

Role Model and


Mentoring for
Success

Usually performs with concern for


and attainment of quality of product
and service, and has the firms best
interests at heart
Mentors interns on
architectural issues

Equity Investment
and Risk

Not expected to have a financial


investment in the firm
Has the capacity to successfully
manage one to two projects
concurrently
Works closely with senior firm
members to understand the
principles of achieving
firm profitability

Professional and
Community
Involvement

Expected to be an active member of


local professional or community
organization that reinforces the firms
culture of community activism

Has a basic understanding of the firms


marketing strategies
Willingness to work with senior staff to develop
marketing skills

Performs with concern for and attainment


of quality of product and service, and
has the firms best interests at heart
Actively mentors interns on
architectural issues

Not expected to have a financial investment in


the firm or to share in risks/rewards associated
with firm ownership
Works to develop an understanding of the basic
business plan of the firm, and expectations for
firms business success

An expectation of some significant


involvement in professional or community
activity that reinforces the firm's culture of
community activism

MARCH 2007
VOL. 13 NO. 3

Criteria

Principal

Partner

Marketing and
Project Development

Responsibility and expectation to


promote the firm and develop new
clients and opportunities for bringing
work to the firm

Primary responsibility is bringing work to the firm

Expectation to maintain positive


relationships with existing clients
and to promote new projects

Demonstrated leadership in supporting firm


personnel and marketing training and techniques
to increase the overall firm's capacity to bring in
new work

Willingness to work with firm partners


in ongoing firm marketing strategies

Role Model and


Mentoring for
Success

Performs with concern for and


attainment of quality in product and
service, and has the firms best
interests at heart
Actively encourages performance by
mentoring others so that all contribute
to the firms success

Equity Investment
and Risk

Not expected to have a financial


investment in the firm or to share
the risks and rewards associated
with ownership
Expected to have an understanding
of the firms business plan, the
financial health of the firm
(past and present), and the business
prospects for the future

Professional and
Community
Involvement

Expectation of significant involvement


in professional organizations or
working with business, civic, or
community groups to reinforce the
firms culture of community activism

Leader in developing marketing program and


policies to maintain existing clients and to attract
new clients

Consistently and visibly performs to standards


to which it is in the firms best interests for all
to strive
Actively encourages performance by mentoring
others so that all contribute to the firms success

Must have a financial investment in the firm


Appreciates and understands the risks as well
as the rewards associated with investment in
a professional service company
Is prepared to invest additional equity to
maintain the firms development in all phases
of the business cycle

Expected to have significant involvement and


leadership in professional and/or community
activities over a sustained period of years
Develops and maintains the firms culture of
activism by firm members in the profession
and community

Harvey Gantt is co-founding partner of Gantt Huberman and is the first African-American graduate of
Clemson University. Gantt is a former two-term mayor of Charlotte, North Carolina, and remains active
in public sector and community development. He serves on the board of directors of the National Trust for
Historic Preservation.
Jeffrey Huberman is co-founding partner of Gantt Huberman and recently received the Gold Medal for
Lifetime Achievement from the AIA North Carolina. He is also active in the community and serves on the
board of directors of the National Council of Architectural Registration Boards. Both Gantt and Huberman
are fellows of the AIA and members of the Design Futures Council.

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2006

2007

Does the firm offer a signing bonus?

No

No

Yes

Yes

Occasionally/
Depends

Occasionally/
Depends

Does the fim pay for the registration exam?


No

No

Yes

Yes

How much of base increase is provided for receiving licensure?


More than 10%
More than 10%

N/A

5%
5%

Less than 5%
More
than 5%

Less
than 5%

More than 5%

DesignIntelligence 20062007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

DesignIntelligence Regional Breakdown


MIDWEST

WEST
[Alaska]
[Hawaii]
Arizona
California
Colorado
Idaho
Montana

Nevada
New Mexico
Oregon
Utah
Washington
Wyoming

Nebraska
North Dakota
Ohio
South Dakota
Wisconsin

EAST

SOUTH
Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi

Illinois
Indiana
Iowa
Kansas
Michigan
Minnesota
Missouri

North Carolina
Oklahoma
South Carolina
Tennessee
Texas
Virginia
West Virginia

Connecticut
Delaware
Maine
Maryland
Massachusetts
New Hampshire

New Jersey
New York
Pennsylvania
Rhode Island
Vermont
Washington, DC

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MARCH 2007
VOL. 13 NO. 3

NATIONAL SALARY:
Marketing Director
Marketing Associate
Marketing Assistant

Office Manager
Administrative Assistant

High Mean: $87,647.87


Low Mean: $73,894.43
High Mean: $63,969.90
Low Mean: $51,192.78
High Mean: $46,988.69
Low Mean: $38,202.45
High Mean: $66,604.08
Low Mean: $52,878.95
High Mean: $46,696.19
Low Mean: $33,821.30

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

The salary analysis in this issue of DesignIntelligence was developed from the 2007-2008 Architects
and Designers Compensation, Bonus, and Benefits Survey, conducted by the Greenway Group on
behalf of the Design Futures Council.
Qualified survey participants were asked to report on both the current low and current high
salary ranges for positions listed on the survey of which they had direct knowledge. Survey
responses were then compiled and averaged based on both the low and the high salary reports to
obtain the Low Mean and High Mean ranges represented in the survey. Please consult the Survey
Methodology on page 6 for additional survey information.
Salary averages reflect base compensation only. Please see target bonus data for respective position categories, found on pages 58 and 65, to determine approximate compensation scenarios.

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Marketing Director


Regional Salary Analysis
WEST

EAST

High Mean $81,886.67


Low Mean $70,796.67

High Mean $98,794.12


Low Mean $84,633.33

MIDWEST

SOUTH

High Mean $83,655.56


Low Mean $69,282.35

High Mean $84,810.91


Low Mean $71,447.27

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VOL. 13 NO. 3

Compensation Levels Office Manager


Regional Salary Analysis
WEST

EAST

High Mean $59,757.14


Low Mean $46,790.77

HighLow
Mean$84,633.33
$70,537.43
Low High
Mean$98,794.12
$55,689.75

MIDWEST

SOUTH

High Mean $65,452.94


Low Mean $50,566.67

High Mean $69,100.00


Low Mean $56,994.29

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Administrative Assistant

WEST

EAST

High Mean $45,229.50


Low Mean $ 34,459.10

High Mean $49,825.96


Low Mean $36,258.93

MIDWEST

SOUTH

High Mean $47,141.11


Low Mean $31,410.78

High Mean $42,747.50


Low Mean $31,308.29

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NATIONAL SALARY:
High Mean: $39,809.86

Year 1 Intern (2007)

Low Mean: $34,543.15


High Mean: $42,705.67

Year 2 Intern (2007)

Low Mean: $37,354.32


High Mean: $47,003.24

Year 3 Intern (2007)

Low Mean: $41,004.30


High Mean: $52,653.07

Year 4 Intern

Low Mean: $44,510.59


High Mean: $58,614.18

Year 5 Intern (2007)

Low Mean: $48,137.73

Current Compensation 2007 Interns

High Mean

High Mean

High Mean

High Mean

West

Midwest

South

East

Low Mean

Low Mean

Low Mean

Low Mean

$80,000

$70,000

$65,064
$60,125

$60,000

$56,433

$48,133

$50,000
$41,687

$40,000
$35,767

$37,751 $38,983 $39,688


$35,468
$32,419 $34,282

$45,695

$44,280

$44,288
$39,860

$42,277

$39,931
$34,460

$36,931

$40,593

$47,320

$42,709

$48,914
$46,223

$41,184

$54,750 $54,314
$52,553

$49,482

$47,018

$43,839
$42,148

$38,319

$56,382

$49,527

$45,156 $45,335

$42,935

$38,242

$30,000

Year 1 Intern

Year 2 Intern

Year 3 Intern

Year 4 Intern

Year 5 Intern

Projected Compensation 2008 Interns

MARCH 2007
VOL. 13 NO. 3

23

High Mean

High Mean

High Mean

High Mean

West

Midwest

South

East

Low Mean

Low Mean

Low Mean

Low Mean

$80,000

$70,000

$65,690

$50,081

$50,000

$46,929
$44,801
$39,423 $41,271

$40,000

$45,970

$42,305

$42,862

$35,903 $37,294

$46,022
$45,656

$42,307
$38,739

$39,450

$30,000

$44,840

$40,106

$50,612
$48,968

$43,310

$50,330

$57,775

$52,106
$47,861

$44,072

$55,988

$58,147

$50,633

$51,077
$44,531

$61,630

$58,012

$57,375

$60,000

$44,320

$48,408 $47,630

$40,327

$36,953

$30,998

Year 1 Intern

Year 2 Intern

Year 3 Intern

Year 4 Intern

NATIONAL SALARY:
Year 1 Intern (2008)

Year 2 Intern (2008)

Year 3 Intern (2008)

Year 4 Intern

High Mean: $41,923.00


Low Mean: $36,524.38
High Mean: $44,982.40
Low Mean: $39,392.30
High Mean: $48,999.22
Low Mean: $43,423.79
High Mean: $54,646.15
Low Mean: $46,857.98
High Mean: $60,285.29

Year 5 Intern (2008)

Low Mean: $50,949.73

Year 5 Intern

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VOL. 13 NO. 3

Comparative Benefits Review


Paid Holidays

7.5

7.75

Partner/Owners
Employees

8.5

Paid Sick Days

NA

5-35

10

11

Partner/Owners
Employees

10

12

NA

15

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

NA

27

NA

30

MARCH 2007
VOL. 13 NO. 3

Comparative Benefits Review


Paid Vacation Days

NA

5-15

10

NA

10-15 10-20 10-25 12

13

0
15

Partner/Owners
Employees

NA

15-20 15-25 16

20 20-30

Paid Other Days

0-4

10

25

Partner/Owners
Employees

NA

21

16

NA

NA

NA

17-23 17-30 20

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

NA

24

NA

30

25

26

MARCH 2007
VOL. 13 NO. 3

NATIONAL SALARY:
Architect 15+ Years

Architect 10+ Years

Architect 5+ Years

Project Manager 15+ Years

Project Manager 10+ Years

IT Manager

High Mean: $96,928.18


Low Mean: $72,678.28
High Mean: $79,918.73
Low Mean: $62,608.29
High Mean: $64,518.96
Low Mean: $51,709.11
High Mean: $108,496.21
Low Mean: $80,328.15
High Mean: $86,116.06
Low Mean: $74,793.43
High Mean: $81,195.81
Low Mean: $69,476.57

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Architect


with 5+ Years Experience
Regional Salary Analysis
WEST

EAST

High Mean $63,608.68


Low Mean $52,389.05

High Mean $68,681.82


Low Mean $54,641.14

MIDWEST

SOUTH

High Mean $62,600.00


Low Mean $48,505.26

High Mean $61,366.67


Low Mean $50,204.55

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MARCH 2007
VOL. 13 NO. 3

Compensation Levels Architect

with 10+ Years Experience


Regional Salary Analysis
WEST

EAST

High Mean $78,582.78


Low Mean $62,581.18

High Mean $85,470.22


Low Mean $69,239.13

MIDWEST

SOUTH

High Mean $79,361.11


Low Mean $57,500.00

High Mean $72,118.75


Low Mean $57,600.00

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Architect


with 15+ Years Experience

WEST

EAST

High Mean $101,968.24


Low Mean $72,747.50

High Mean $103,405.00


Low Mean $77,550.00

MIDWEST

SOUTH

High Mean $88,789.47


Low Mean $69,144.44

High Mean $90,870.00


Low Mean $71,430.00

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Compensation Levels Project Manager


with 15+ Years Experience
Regional Salary Analysis
WEST

High Mean $116,215.30


Low Mean $80,110.59

EAST

High Mean $108,204.76


Low Mean $86,529.76

MIDWEST

SOUTH

High Mean $100,513.89


Low Mean $75,972.22

High Mean $109,823.21


Low Mean $77,119.60

MARCH 2007
VOL. 13 NO. 3

NATIONAL SALARY:
Interior Designer 15+ Years
Interior Designer 10+ Years
Interior Designer 5+ Years

High Mean: $89,078.48


Low Mean: $70,867.17
High Mean: $69,575.31
Low Mean: $57,966.09
High Mean: $56,865.90
Low Mean: $45,983.98

NATIONAL SALARY:
Landscape Architect 15+ Years
Landscape Architect 10+ Years
Landscape Architect 5+ Years

High Mean: $87,643.20


Low Mean: $74,000.77
High Mean: $67,496.30
Low Mean: $60,085.19
High Mean: $58,672.92
Low Mean: $48,077.60

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

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MARCH 2007
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Compensation Levels for Interior Designers with


15+ Years Experience
Regional Salary Analysis
WEST

EAST

High Mean $85,166.67


Low Mean $67,033.33

High Mean $93,742.47


Low Mean $75,742.94

MIDWEST

SOUTH

High Mean $82,407.14


Low Mean $64,785.71

High Mean $95,743.33


Low Mean $76,993.33

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Landscape Architect with


15+ Years Experience

WEST

EAST

High Mean $92,385.00


Low Mean $78,690.00

High Mean $87,142.86


Low Mean $74,285.71

MIDWEST

SOUTH

High Mean $81,400.00


Low Mean $67,100.00

High Mean $87,000.00


Low Mean $73,166.67

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NATIONAL SALARY:
Graphic Designer 15+ Years

Graphic Designer 10+ Years

Graphic Designer 5+ Years

High Mean: $81,277.14


Low Mean: $65,060.00
High Mean: $65,545.05
Low Mean: $56,546.55
High Mean: $52,735.19
Low Mean: $45,379.14

NATIONAL SALARY:
Product Designer 15+ Years

Product Designer 10+ Years

Product Designer 5+ Years

High Mean: $86,000.00


Low Mean: $66,500.00
High Mean: $69,400.00
Low Mean: $57,600.00
High Mean: $51,375.00
Low Mean: $44,333.33

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Graphic Designer


with 15+ Years Experience
Regional Salary Analysis
WEST

EAST

High Mean $95,000.00


Low Mean $68,626.67

High Mean $94,500.00


Low Mean $79,500.00

MIDWEST

SOUTH

High Mean $64,720.00


Low Mean $51,180.00

High Mean $77,750.00


Low Mean $61,825.00

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MARCH 2007
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NATIONAL SALARY:
Env. Graphic Designer 15+ Years
Env. Graphic Designer 10+ Years
Env. Graphic Designer 5+ Years

High Mean: $90,000.00


Low Mean: $73,750.00
High Mean: $71,562.50
Low Mean: $60,937.50
High Mean: $53,142.86
Low Mean: $45,428.57

NATIONAL SALARY:
Engineer 15+ Years
Engineer 10+ Years
Engineer 5+ Years

High Mean: $112,753.60


Low Mean: $81,763.17
High Mean: $91,214.22
Low Mean: $69,870.93
High Mean: $72,225.63
Low Mean: $56,719.15

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Compensation Levels for Engineers


with 15+ Years Experience
Regional Salary Analysis
WEST

High Mean $118,448.00


Low Mean $86,949.00

EAST

High Mean $112,375.00


Low Mean $89,750.00

MIDWEST

SOUTH

High Mean $108,000.00


Low Mean $74,250.00

High Mean $115,900.00


Low Mean $75,630.00

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MARCH 2007
VOL. 13 NO. 3

Leadership Roundtable: Three Firms Discuss a


Changing Benefits and Human Resources Landscape
Representatives from one small, one large, and one extra-large
firm respond to emerging issues, discuss changes and trends in
human resource management, and relate their experiences in the
areas of intern compensation, continuing education, employee
retention, benefits plans, and executive bonus policies within their
firms.
Charles D. Dalluge
Executive Vice President
Mr. Dalluge is responsible for the LEO
A DALY and Lockwood, Andrews &
Newnam (LAN) operations and projects worldwide. Since joining LEO A
DALY in 1989, he has assumed a variety of roles including designer, senior
project manager, Corporate Director of
Development, Assistant to the Chairman, Managing Principal, and President of LEO A DALY International.
He has a Bachelor of Architecture
degree from the University of Nebraska-Lincoln and is involved with a variety of civic, community, and industry
organizations.
Douglas Miller DeChant
Principal
Doug DeChant is principal of Douglas
Miller DeChant Architects/Shepherd

Resources, Inc., AIA, based in Beaver


Creek/Avon, Colorado. Founded In
1989, Douglas Miller DeChant Architects/Shepherd Resources, Inc., AIA,
was established as a custom residential
architecture practice based upon three
ideals: build relationships; provide
exceptional service; pursue creativity and
detail. They have been commissioned
to design fine custom residences from
3,500 to 35,000 square feet and are
centered in the Vail/Beaver Creek area.
Their national reach extends to design
projects in Dallas, Denver, Los Angeles,
Steamboat Springs, and Aspen. Doug
is a graduate of the Illinois Institute of
Technology, Chicago.
Sam Condit
Executive Vice President/
Managing Principal
Sam Condit is responsible for all operational aspects of the Washington, DC

MARCH 2007
VOL. 13 NO. 3

office of McKissack & McKissack, one


of the largest minority-owned AE firms
in North America. He presides over the
day-to-day operations and monitors
activities relating to firm clients and
projects. Mr. Condit is an experienced
manager and contract negotiator, from
both client and consultant perspectives,
with special emphasis in very detailed
scopes of work for professional services,
construction, and design-build contracts.
Condit graduated from the University of
Nebraska-Lincoln.

DESIGNINTELLIGENCE: COMPENSATION &


BENEFITS LEADERSHIP ROUNDTABLE

project individuals. Finding qualified


talent is a concern and we expect this
workload to increase by mid-April
to May. At this point we will have to
increase staff.
DeChant: Conditions are generally excellent. We seek and generally employ
based upon attitude first. Accordingly,
our staff contributes to a positive,
collaborative studio culture, absent
many negative office dynamics. Our
staff knows that our priority is to create
outstanding solutions for our clients,
not to further the employees personal
agenda or ego.

More often than not, we recruit. In our


DI: Please describe the current employment location, near Vail, CO, the population
conditions in your firm and prospects for the tends to be transient. With the lack of
coming year.
population density, there is not a lot
to choose from. We advertise in other
Condit: The last six months weve been
cities, Denver (110 miles east), and the
sort of flat in terms of hiring. We
AIA job board. We have continuously
expect in the next one-to-two months to run ads for the last year. I liken this to
hire several architects as we anticipate
a manager for a sports enterprise trying
the workload for 2007 to be significant. to draft the best athletes.
We have won or have been selected for
enough projects to take care of the exist- In our area, it is difficult to fill opening staff in the architectural division. We ings with the kind of staff we seek.
are going to be required to hire talented

continued on page 42

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40

MARCH 2007
VOL. 13 NO. 3

Global Salary Review


Architect Employee Salaries
Country: Argentina

Congo (Demo. Republic)

Australia

Australian Dollar
55,901
105,476
$44,697.43
$84,336.70

France
Euro
25,827
48,732
$34,338.52
$64,792.08

Bahamas

Germany

Bangladesh

India

Brazil
Real
40,417
76,260
$19,453.09
$36,700.09

Japan

Cambodia

Jordan

China

Mexico

Currency: Pesos
Low/National Currency: 32,941
High/National Currency: 62,155
Low/USD: $10,621.67
High/USD: $20,041.60

US Dollars
27,081
51,098
$27,081
$51,098

Taka
752,988
1,420,770
$10,941.41
$20,644.73

Riels
49,183,376
92,801,303
$12,345.23
$23,293.50

Renminbi Yuan
115,168
217,304
$14,891.14
$28,097.25

Kinshasa Francs
4,834,838
9,122,581
$11,191.75
$21,117.09

Euro
45,457
85,769
$60,431.92
$114,023.92

Indian Rupees
661,757
1,248,632
$15,046.78
$28,390.92
Yen
4,907,653
9,259,969
$41,770.08
$78,813.56
Jordanian Dinars
9,746
18,389
$13,754.53
$25,957.32
New Mexican Pesos
168,641
318,200
$15,191.02
$28,575.28

MARCH 2007
VOL. 13 NO. 3

Morocco

Moroccan Dirhams
167,454
315,960
$19,938.88
$37,621.60

Netherlands

Euro
32,710
61,719
$43,484.42
$82,048.75

New Zealand
New Zealand Dollars
72,143
136,122
$50,640.87
$95,551.01
Nicaragua
Gold Cordobas
177,801
335,483
$9,780.84
$18,454.93

Philippines
Philippine Pesos
770,605
1,454,011
$15,864.23
$29,933.32
Russia

Rubles
274,946
518,781
$10,558.00
$19,921.32

South Africa
Rand
204,327
385,533
$27,511.49
$51,909.86

South Korea
South Korean
Won
29,656,259
55,956,702
$31,428.25
$59,295.64

United Arab Emirates


Emirian Dirhams
110,870
209,195
$30,192.94
$56,969.54

United Kingdom

Pounds Sterling
16,560
31,246
$32,190.66
$60,738.49

United States*
US Dollar
49,381
66,427
$51,709**
$79,919**

Venezuela
Bolivares
19,002,295
35,854,346
$8,849.39
$16,697.41

Source: Wall Street Journal Executive Career Site;


Currency calculation: www.xe.com
* US salary information from www.salary.com
Data reported/calculated March, 2007
**Greenway Group Salary Data;
Architect 5+ years experience

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MARCH 2007
VOL. 13 NO. 3

continued from page 39

We have limited personnel resources.


We live and work in a very expensive
environment, which adds a layer to
the employment challenge. This puts
a priority upon maintaining a highly
enjoyable, dynamic, satisfying studio
setting, so that word gets out and we
therefore attract prospective staff. Our
two most recent staff additions sought
us out, both fairly senior people.
Dalluge: This continues to be a thrilling
time for our firm and the future looks
very positive for us. We not only look
to hire individuals located throughout
the United States but also individuals
to support the growing international
workload we are experiencing. This has
caused us to place an increasing emphasis on retaining our quality people and
an increased emphasis on communicating our strengths as an exciting
place to be and to work. We strive
each day to reinforce our stated goal
which is, attracting and investing in
the best people. We expect the future
to continue to be challenging both in
the work we will be doing and matching that with the continuing search for
quality people. As more and more firms

compete for people with the same skills,


it will become more and more important
for LEO A DALY to differentiate our
firm not only in the marketplace but
in the workplace. We have made many
changes over the past year and are looking at other changes for the future.
DI: How much of a percentage increase in
base compensation did you use moving
from 2006 to 2007? What compensation
philosophy do you maintain regarding costof-living and inflation increases?
Condit: We typically employ a basic costof-living (COL) increase of four percent
per year. If an employee is doing satisfactory job or doing their job well then
we provide this increase automatically.
We look at each individual to see if they
are exceeding expectations or if they are
doing work beyond categorized levels,
and advancing, then we look at potential
merit increases and bonuses; bonuses
are discretionary with the President and
Chair, Deryl McKissack; we do have
merit increases but we also maintain the
standard COL of four percent per year.

MARCH 2007
VOL. 13 NO. 3

DeChant: Our base compensation increase in the variance of base compensation


increases across our different market
from 2006-2007 ranges from two to 15
sectors, profit centers, and geographical
percent.
locations.
We do not specifically address this as
Generally, we request each profit center
a fixed percentage in our salary adjustments, however, as the amounts can vary to try to target their overall increases
at a certain percentage. This year, only
depending on annual revenues.
a few of our profit centers were able to
As far as other compensation, our profit- accomplish this goal. Market conditions in many cases dictated using
sharing is distributed in two categories,
higher increases to keep our quality
cash and pension. For 2006 year-end,
staff.
we distributed cash ranging from six to
22 percent of salary. Additionally, we
Basically, due to the demand for
distributed a pension of 10 percent of
professionals, each market dictates the
salary. The pension is not a 401K but
compensation, which would include the
an arrangement where pretax dollars
cost-of-living and inflation increases.
are contributed into a Vanguard mutual
fund family. The staff is able to select
from 50-60 funds in which to have their
DI: There is much discussion today about
contribution placed; this is an outright
profit sharing contribution, not a match- increases in intern compensation. What
are your current policies and positions
ing arrangement.
on compensation of interns prior to their
Dalluge: Our base compensation increase getting licensed?
average for approximately 20 profit
Condit: We are concerned about intern
centers varied greatly due to a wide
compensation. We are paying what we
variety of factors, including most
think is the going rate but in the end
importantly, our goal of retaining and
we look at each individual and their
attracting the very best talent. Other
experience, what computer skills they
specific market demands played a role

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MARCH 2007
VOL. 13 NO. 3

have, etc. We pay a premium right now


if they have BIM computer technology and training; we look at each on
an individual basis and really have no
starting price. If they [interns] work
for us the summer before, then we take
that into consideration. If they work
for us before and we like what they do,
then perhaps an increase of $1,000 to
$2,000 per year is considered, but it
completely depends on qualifications
and past experience. As far as whether
interns are commanding more or are

better prepared, I would say no, they


are not really better prepared. We try to
go into universities to pick out the best
and brightest; when we find the ones
we think would be good architects and
we pay more to get them. Im not sure
whether they are coming out of school
any better prepared and, in reality, when
they start out with us we need to teach
them about contract documents and how
to do this work. Before they design a
building we have to teach them how to
be a good designer. You cant design a

MARCH 2007
VOL. 13 NO. 3

building if you dont know how to put


a building together. We are willing to
pay a premium for candidates with
talent and skills and we are encouraging
universities to increase training in BIM.
The problem is that the universities often
do not have the people trained to teach it.
So it is a bit frustrating.
We value licensure very much and
encourage study. We provide time off for
registration exams and upon licensure
offer a $3,000 bonus. Currently, we
offer a $1,000 bonus for LEED certification as well.
DeChant: Interns are seeking and getting
greater compensation than in years past.
They arent any stronger professionally
than 20 years ago, but we are continually surprised at the salaries inexperienced
people expect. We have lost some as a
result of not being able to meet the pay
expectations; this isnt really a function
of economics (as compared to a larger
city, larger firm), as we are actually a
pretty profitable organization. But it
might be desperation; it might just be
firms saying Weve got to have bodies,
so they pay. We are a firm that places
a high priority on profit sharing. Our

45

highest paid guy received 32 percent


of his salary in additional compensation between cash and pension but
we are not able to convince prospective employees that the whole idea is
valid. That is why we are considering
dropping profit sharing altogether
and simply raising salaries. That is an
ongoing question. I would like to hear
a response from what is being seen in
the area.

We are considering dropping profit


sharing altogether and simply
raising salaries.
While we are supportive of the personal
development component of licensing,
we do not distinguish much between
licensed and unlicensed staff compensation. Our compensation focus is
elsewhere, like attitude, experience,
commitment, capability, etc.
Dalluge: Interns are very important
for the future success of the firm. We
continue to believe that compensation is
only part of what drives these individuals. In addition to compensation,
we focus on their growth. We encourage and support their goal to become

46

MARCH 2007
VOL. 13 NO. 3

registered by paying for the costs of the


examinations and registrations, as well
as providing them the time to take the
exams. Our offices expose these young
interns to a broad range of duties and
responsibilities and team them up with
more experienced leaders within the
office. Many of the interns take advantage of these opportunities and are then
rewarded when they become registered.
Just as with employees that have been
in the workforce for a while, the same
is true with interns. Those individuals
that take responsibility for their growth
and development are supported by the
company and rewarded accordingly.
DI: What turnover rate does your firm experience and what is your retention record for
keeping top talent? What methods does
your firm employ to retain top talent and
what do you think are the top three reasons
for turnover at your firm?
Condit: Turnover at McKissack &
McKissack has been pretty low. We have
a long history of keeping our key people.
Probably, we run an average rate of loss
consistent within the profession. Last
year we experienced almost no turnover
and we work to keep this consistently

low. Our staff sees a lot of opportunity,


a lot of growth potential with the firm.
It is a nice place to work and Deryl (our
CEO) is great to work for. We have a
focused management style and plenty of
latitude; were not micro-managers. We
ask a lot of our leaders and the positions
they hold. Our offices are nice, as are
the working conditions not cramped.
There are lots of pluses here. We offer
10 paid holidays a year and decent
vacation benefits after five years you
earn three weeks vacation and then
four weeks after that. When we hire an
experienced person, we dont mandate
that they work for two weeks vacation;
we increase the vacation based on their
experience and level as if they started
with us right out of college. There is
also good healthcare and dental coverage; all of it is pretty competitive.
DeChant: We probably turnover roughly
10 percent of the staff per year. The
reasons: either someone is terminated
due to compromised performance or
ability, or there is a voluntary resignation, usually the result of some clear
mis-fit with the office culture or by
someone demonstrating a pattern of
lesser commitment. We lost one indi-

MARCH 2007
VOL. 13 NO. 3

vidual in 2006 to higher compensation


elsewhere. Four months later he returned
seeking to be reinstated. He told me that
he realized his mistake during the first
day in his new position. We were unable
to rehire him.
We have been able to retain the top
talent we want to retain. In an area
otherwise known for being transient (a
resort setting), we are pleased that our
top associate is now in his tenth year
with the practice.
Our retention methods include: great
environment, projects, salary, and studio
dynamics; a high degree of responsibility
and autonomy; involvement in practice
vision and goal-setting and leadership
are also factors.
Our collaborative studio culture contributes to a positive, collaborative environment. We are an original tenant in
the building, so we were able to design
our own space. Essentially, we work
in a wide-open studio, with no private
offices. I work in a larger version of
work stations which the staff enjoys.
Any of us can pop up and ask someone
a question at any time, or look over

their shoulder. We maintain a positive


open-door environment. There are no
territories or empires, no egos to feed.
And the beautiful setting: three beautiful window walls overlooking the Eagle
River; an outdoor pool, spa, terrace,
grill, with fly fishing just beyond that;
it is a really wonderful environment.
We often gather down by the pool,
fire up the grill and have lunch on the
terrace.

Our turnover rate of our top and


very-good performers should be
zero percent.
Dalluge: Although measuring the turnover rate is important, and even though
our turnover rate is below the industry
average, it is still just a measurement
tool. We look at turnover in a different way. Our turnover rate of our top
and very-good performers should be
zero percent. We also believe that the
turnover rate of our poor performers
and unacceptable performers should be
100 percent. Poor performers not only
affect just their individual performance
but the performance of their teams,
their office, and the firm as a whole.

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MARCH 2007
VOL. 13 NO. 3

We feel that we do an exceptional


job of retaining top talent. We spend
a lot of time on their development in
their current positions and provide
growth opportunities for their future
positions. We have accomplished an
employee survey for each of the past
six years. The results for the company
have improved each year. Although
they are not where we would like them
to be in every area, the feedback from
our people is that they appreciate the
opportunity to provide feedback and
appreciate the opportunity to hear the
results and applaud the fact that the
leadership is taking action in many of
the identified areas.

to the direct supervisor of that person.


Either the individuals were not provided the right opportunities, were not
communicated with, were not provided
the right tools, or did not know the work
they were responsible for, etc. All these
come down to the direct supervisor and
leadership. We continue to work to stress
that importance and work to help leaders
at all levels to understand the influence
they have on our people. Greater emphasis will be placed over the coming years
on leadership development and succession planning for key positions.

Even though our turnover is not


exceptionally high for our industry,
we believe that turnover can be attributed to only one reason. It gets down
to leadership at all levels. We conduct
surveys with as many people that have
made a choice to leave us as we can. We
do these not right before they walk out
the door but after a period of time. We
find that after this delay in time they
are usually more honest with their true
reasons for leaving. In the majority of
cases, the reason for leaving came back

Condit: Executive compensation is


completely merit based. We hire the best
and the brightest and pay people what
they are worth. Sometime this year we
are planning to institute a merit-based
incentive compensation program.

DI: Can you share with us the executive


compensation philosophy of your firm?

DeChant: Our post profit sharing/pretax


profits were well in excess of what we
expected or budgeted for the year. We
are always reinvesting in the firm. There
is no specific program for this but we
are always reinvesting to reduce the tax

MARCH 2007
VOL. 13 NO. 3

burden and to continually promote a


creative environment. Just last week we
bought supplemental office furniture
and we are always mindful of technology
upgrades and other opportunities. We
never drain the company of cash and are
always certain of a contingency amount
being carried forward; times are good
today but you never know.
Im the only principal of the firm. I take
a base salary of $134,654 (2007), and
profits remaining after staff profit-sharing distributions. We are still working
out the final numbers, but again, our
post profit-sharing/pretax profits for
2006 did significantly exceed expectations. My vehicle and some travel are
expensed.
Dalluge: The executive compensation
philosophy at the firm is purposely kept
very simple and very focused. It is a
performance-based plan built on our
corporate goals.
DI: Are funds for continuing education,
professional development, and associations
included in discussions of compensation?

49

Condit: Our continuing education focus


is centered around computer training, BIM training, more specifically.
We encourage people to get licensure.
LEED is an important focus for us.

The executive compensation


philosophy at the firm is purposely
kept very simple and very focused.
If someone wants to get a masters
degree, we support that but havent
been participating too much in that if it
isnt in the best interest of the company;
we would rather focus on stuff we
need. We pay AIA dues when members
join and society dues for engineers
and key people. We actively encourage
all key people to participate in their
professional societies and we cover
one or two major conferences a year
to continue training, etc. One hundred
percent of dues for association membership are paid.
DeChant: We sponsor various forms
of continuing education, both in and
out of the office. We provide varying degrees of tuition reimbursement,

50

MARCH 2007
VOL. 13 NO. 3

depending upon the class, the individual, etc. We pay 50 percent of ARE
registration fees, with certain diligence
and timing restrictions. We maintain an
ARE study library in the studio and we
pay 50 percent of the annual Colorado
AIA registration and membership fees
for registered architects. I dont recall
ever paying the entire fee; half-pay has
been our policy for quite a while. We
make other association fee arrangements on a case-by-case basis but we
need to be convinced of the benefit.
We often sponsor the staff to attend
seminars and training classes specific to
the profession. Sometimes this includes
lodging and airfare but more often they
are day-long sessions. We pay the registration fee and compensate the staff for
their time. We put up entire staff for
few days at the AIA conference, when
it was held in Denver and sent a few to
the most recent USGBC.

These are communicated as a part of the


overall benefits program and an emphasis that this is part of a total compensation and benefits package.
DI: As we look on the horizon, what trends
in compensation, benefits, and incentive
bonuses do you see?
Condit: We are working, this year, to
formalize our executive compensation
program; it will emphasize meritocracy.
This is a significant human resource
trend in professional practice.
DeChant: We are reconsidering our profit
sharing program but will never eliminate
it altogether; there will always be some
pension component to it. We held an
internal leadership summit a few weeks
ago and out of this came a general desire
not to eliminate profit sharing, but no
guidelines have been defined as yet. It is
a collaborative effort with key decision
makers. Out of 12 on staff, five were in
conference (myself and four others, in
Denver, to discuss practice management).

Dalluge: The processes for continuing education, professional development, and association membership are
presented through our policies. These
are also reinforced through commuWe have recently lost prospective
nication from corporate and office
employees to competing firms based
leadership, as well as direct supervisors. upon salary, and because our profit-

MARCH 2007
VOL. 13 NO. 3

sharing appears less certain than salary.


As such, we are currently re-thinking
profit-sharing as a concept and may soon
increase salaries, and end profit-sharing,
or some hybrid thereof. The management
staff considers profit-sharing viable and
valuable, but we still have some difficulty in conveying this value to potential
staff in a meaningful way.
Given the obvious and continual trend
toward higher compensation, and the
direct relationship to fee rates, we
wonder at what point our clients will
resist commensurate fees. This is an
especially pointed question relative to
retaining top talent in a smaller firm.
Dalluge: In the area of compensation we
believe we will see more and more of
compensation being moved from base
salary to performance-based salary.
This will occur at all levels of all organizations. We believe that all employees
everywhere are asking for and receiving more control in deciding how their
value is being perceived. We also believe
that this desire for more control will be
realized in the area of benefits. In health
benefits we have taken the lead among
firms like ours in offering an option

of a consumer-driven health plan that


provides employees more control over
how their health dollars are used. We
also believe that more and more benefits
will be optional and that employees will
drive this desire for choice. Creative
benefits solutions that will capture the
changing needs of the different generations in the workplace will become more
necessary. Some benefit changes made
to retain baby boomers may not be what
younger generations are searching for.
A balanced approach will be necessary
in this as well as other areas. Employees
continue to ask for more flexibility in
how they work. We continue to address
these needs through more flexible
programs.
DI: Thank you for participating in this
leadership roundtable on compensation in
architecture and design. Your contributions
are highly valued and appreciated.

51

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MARCH 2007
VOL. 13 NO. 3

NATIONAL SALARY:
CEO
COO
Partner - Owner
Principal - Non Owner
Associate Principal

High Mean: $212,348.06


Low Mean: $173,270.65
High Mean: $185,100.00
Low Mean: $152,088.10
High Mean: $173,982.63
Low Mean: $128,798.74
High Mean: $136,078.62
Low Mean: $104,258.00
High Mean: $117,271.62
Low Mean: $92,240.28

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

Salary averages reflect base compensation only. Please see target bonus data for respective
position categories, found on pages 58 and 65, to determine approximate compensation
scenarios.

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Associate Principal


Regional Salary Analysis
WEST

EAST

High Mean $122,111.11


Low Mean $90,516.00

High Mean $130,444.44


Low Mean $107,750.00

MIDWEST

SOUTH

High Mean $90,500.00


Low Mean $73,666.67

High Mean $125,155.00


Low Mean $94,665.00

53

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MARCH 2007
VOL. 13 NO. 3

Compensation Levels Principal/Non Owner


Regional Salary Analysis
WEST

EAST

High Mean $134,630.00


Low Mean $96,990.00

High Mean $146,250.00


Low Mean $118,625.00

MIDWEST
High Mean $113,571,43
Low Mean $97,500.00

SOUTH
High Mean $146,687.50
Low Mean $102,100.00

MARCH 2007
VOL. 13 NO. 3

Compensation Levels Partner/Owner

WEST

High Mean $164,740.47


Low Mean $130,522.11

MIDWEST
High Mean $158,913.27
Low Mean $103,861.00

EAST

High Mean $206,950.00


Low Mean $136,714.29

SOUTH
High Mean $151,315.38
Low Mean $140,586.67

55

56

MARCH 2007
VOL. 13 NO. 3

Compensation Levels COO


Regional Salary Analysis
WEST

High Mean $204,800.00


Low Mean $168,920.00

MIDWEST
High Mean $175,500.00
Low Mean $151,541.67

EAST

High Mean $213,125.00


Low Mean $155,000.00

SOUTH
High Mean $205,000.00
Low Mean $140,000.00

MARCH 2007
VOL. 13 NO. 3

Compensation Levels CEO

WEST

High Mean $213,698.33


Low Mean $187,131.67

MIDWEST
High Mean $183,600.00
Low Mean $144.666.67

EAST

High Mean $260,555.56


Low Mean $185,000.00

SOUTH
High Mean $186,600.00
Low Mean $183,325.00

57

58

MARCH 2007
VOL. 13 NO. 3

Target Bonus Principal Non-Owners


As Percentage of Salary
High

4%

5%

8% 10% 16% 18% 20% 25% 30% 35% 50%

As Percentage of Salary
Low

0% 1% 3% 4% 5% 7% 10% 15% 25%

Target Bonus Partner/Owners


As Percentage of Salary
High

5% 5.72% 10% 12% 15% 20% 25% 26% 30% 40% 42% 50% 60% 70% 80% 100% 125% 150% 200% 250%1000%
As Percentage of Salary
Low

0% 1% 2% 3% 5% 7% 10% 15% 20% 25% 30% 33% 35% 40% 45% 45.3% 50% 80% 100% 300% 500%
DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Meritocracy and Ascension: The Pursuit of


World Class Performance

The Greenway Group

Today there is considerable waste in the design process of most


firms. Designers spend a lot of time and effort creating things that
get erased or discarded. This amount of waste strongly hints that
there are considerable opportunities for process improvement.

f your firm could be only 10 percent


more efficient, that would translate
directly into significant additional
profitability. We recommend that firms
think of design in terms of both process
and outcome, and to remember that
clients pay for the outcomes, not the
process.

and nobler than what they envisioned


in the academy.

The Greenway Group has developed


an analytical process to classify firms.
This classification ranges from firms
that have stopped being created and
are just being run to firms in ascension, firms of continual improvement
To meet the challenges and opportunities and growth. These firms can be divided
of the years to come requires hard work
into seven distinct categories. These
and creativity. A meritocracy system
categories are:
such as the Greenway Groups LEAP
AAA World Class*
and effective compensation administra AAB Outstanding*
tion is needed in professional practices
ABB Above Average*
today. Firms must have a passion and
BBB Average
patience for the long journey of best
BBC Below Average
practice in order to achieve AAA, AAB,
BCC Significantly Below Average
and ABB levels. If we can summon both
CCC Dysfunctional
the passion to pursue that journey and
the patience to learn along the way, our
(*Asterisks firms scoring AAA, ABB and those
firms will be well served and the interns believed by the survey panel to approximate these
scores are included in the compensation review.)
who join us will soon discover that they
have joined a profession even grander

59

60

MARCH 2007
VOL. 13 NO. 3

Firms of all sizes (XS, S, M, L, XL) can


fall into any of the above seven categories. Some of these organizations may
appear from the outside to be happy
places; they may even be winning some
good projects and recruiting quality
interns. But before long it becomes
evident that something is lacking. This
absence of true cultural strengths often
gets referred to as lack of leadership
in the firm or lack of astute management by the principals. Regardless,
anxiety becomes pervasive within the
firm. Fingers get pointed. Such negative
behavior requires energy, of course, the
kind of energy that would otherwise
be constructively focused on problem solving and in the engagement of
clients on successful projects. When the
principals of a firm get themselves into
this predicament, they must look into
the mirror and realize that something
must be done differently. This includes
doing something differently themselves.
When confronted with this dilemma it
is suggested that they ask:
Why do we have such high turnover?
What can we do that will make
the biggest difference, and what is

the one thing that we must do for


anything else to happen?
How can we get people involved in
reinventing the culture?
How can we create a living solution
for today and tomorrow?
The Design Futures Council and the
Greenway Group have formulated and
updated ways to measure both the
culture of a firm and the best practice characteristics of a firm. There
are twelve points to consider in each
analysis and some of these overlap
intentionally. The Greenway Group has
also further developed their Greenway
LEAP program that includes a human
resource meritocracy component which
engages staff in self evaluation, peer
evaluation, and a 360 degree assessment. This program is run with some of
the worlds strongest and most admired
professional practices. Scores are
categorically analyzed by Greenways
principals and senior consultants and
the reports become living scorecards
and benchmarks on performance over
time. Thus, a firm can assess its own
scores against peer firms and against
best practice organizations. The metrics
of value are constantly being updated so

MARCH 2007
VOL. 13 NO. 3

that firms know if they are keeping pace 5. MORALE: Do the leaders of the firm
within this industry of increasing change
boost morale, especially during
and significant value migration.
times of stress?
The Greenway program includes questions and sub-questions that assign
points to a scorecard in the following
twelve categories:
1. CONTINUOUS IMPROVEMENT: How
successful is the firm at challenging
its existing processes and making
continuous improvements? How restless to get better?
2. CLARITY OF VISION: How clear is the
vision of the firm? Does this vision
truly inspire people? How different is
the firm? What is its uniqueness and
where does it show up?
3. PRIORITY PLANNING: Is there systematic
priority planning in the firm? Does
each staff member know what his or
her priorities are? Does this enable
firm -wide success?

6. SIGNIFICANCE: What of significance


has the firm done recently other
than market more work? Does the
firm consistently build financial
resource strength and reinvest in its
future?
7. COMMUNICATION: Are internal
communications at exemplary
levels? How human does the firm
sound to clients?
8. COLLABORATION: Is there a collaborative spirit in the firm that enriches
the people and the organization?
9. STRENGTH, NOT EGO: Is leadership
steady and strong without an alienating egotistic pride?

10. WORK ETHIC: Is there a work ethic?


Is the firm more than an organization chart and a set of financials?
4. ROLE MODEL: Is the firm a role model?
How does the firm measure its
Does it have stature in the field? Why?
value? Is there courage?

61

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MARCH 2007
VOL. 13 NO. 3

11. STRATEGIC OPTIMISM: Is there strong


intelligence within the firm and is
this relevant to clients needs? Is
there strategic optimism?
12. RAPPORT: Is there rapport, respect,
and admiration between people in
the firm?
The best practice zones of success
can next be analyzed. These twelve
areas were developed by the Greenway
Group, working with CNA Insurance and the Design Futures Council
in 1997 and then updated at a recent
Design Futures Council meeting held in
London.
The twelve zones of best practice include:
1. The firm hires, trains, and retains
the most talented people
2. The firm finds niches of specific
business interest and return on
investment
3. The firm selects clients with great
care
4. The firm possesses strong communication skills

5. The firm has brand distinction with a


culture of high standards and continuous improvements
6. The firm has strong knowledge
management and collaboration efficiency around its tacit skill
organization
7. The profit goals are understood and
generally achieved year after year
8. The firm has growth goals and these
are achieved in quantity and quality
9. The firm is expert at sustainable design,
green competency, and leadership
10. The turnover rates in the firm are at
optimum levels of 8-12 percent
11. The firm has a transition plan for leadership and they have a back up plan
12. The firm knows its liability risks and
defends the assets of the firm
Effective meritocracy scorecards can
then be administered by the external
third party on an annual basis. Occasionally, they are administered twice a
year during the inaugural year. Thereafter, once annually seems to work best,
especially when linked to a subsequent
web-based human resource scorecard.

MARCH 2007
VOL. 13 NO. 3

The system called the Greenway LEAP


success. This individual is better
speaks to the issues of Leadership,
than average in regard to job role
Empowerment, Accountability, and
and responsibilities. The culture of
Processes. With the completion of such
the firm is significantly improved
a system, the leadership board of a firm
because of the contributions made.
and its compensation and evaluation
Although the attitude toward
committee will have a trustworthy way
achieving results is good, and most
to keep leaders and managers accountof the approaches appear to be
able for the goals of the organization.
advancing the firm, there is still
Keep in mind that custom questions are
room for improvement. Additional
also most often added to the standardemphasis is needed where noted.
ized questions. Here is how the human
69-79 This individual performs
resource scorecard and the firms perforinconsistently in the organization
mance track together on Greenways
and improvement is needed now.
LEAP analysis of evaluation scores:
The performance is average-tobelow average and the attitude
90-99 This individual is in the best
toward results and the approach
of the best category and is truly
used in implementing successful
committed to achieving results which
actions are less than desirable.
improve the performance of the firm
There are times of ineffective
in all areas of their responsibility. All
behavior and action is needed to
behavior appears to be contributing
improve. At this moment in time
to organizational effectiveness. Leadthis individual appears to fall short
ership and management duties and
of making a significant contribution
competence appear to be excellent.
to the firm as expected in the merit
This individual is taking the lead as a
culture of the firm.
role model in showing the contributions that can make the organization
49-68 This individual shows little
a singular success.
or no aptitude for achieving results
that are expected in the firm. Most
80-89 This individual is strong and
areas of responsibility appear to
is contributing to organizational

63

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MARCH 2007
VOL. 13 NO. 3

AAA: Firms who outperform all

others as measured on the twelve


categories of best practice and who
score 83.5 or above on Greenways
LEAPTM Cultural Assessment or
equivalent metric scale.

AAB: Firms who are generally

recognized as leaders at regional or


national levels may score highly on
the LEAPTM analysis, and who are
believed to be best practices on at
least eight of twelve categories.

ABB: Firms who are in an ascen-

dant condition, who are growing in


quality and scale of service and who
achieve best practice ratings of 83.5
on at least seven of twelve categories; Those who rate or are projected to rate highly on the Greenway
LEAPTM diagnostic.

be ineffective and improvement is


needed if the individual is to continue
in their current role in the organization. Urgent attention is needed to
make this individual more effective
in contributing to the success of the
organization.
As this issue of DesignIntelligence
clearly shows, people are far and away
the most important and costly asset of
a firm. In a true meritocracy culture,
they are worth every penny that you can
invest in them. Moreover, money needs
to be invested in ongoing training so
that the staff can remain on the leading
edge of the profession. Just as important
as recruiting and retaining strong staff
and training these professionals is the
movement of under performing staff to
outside the culture of your organization.
Firms spent too much on remediation
and too little on excellence. Most firms
are too patient with under performing
staff members. It is best to address this
issue head on and then to move forward.
The entire culture will be strengthened
when this happens.

MARCH 2007
VOL. 13 NO. 3

65

Target Bonus Non Technical Staff


As Percentage of Salary
High

0% 1% 2% 3% 4% 4.5% 5% 6% 7% 8% 9% 10% 11% 12% 15% 16% 20% 24% 24.1% 25% 100%
As Percentage of Salary
Low

0%

1%

2%

3%

3.75%

4%

5%

6%

7%

7.5%

8%

10%

15% 15.9% 25%

Target Bonus Technical Staff


As Percentage of Salary
High

1% 3% 4% 5% 5% 5.72% 6% 7% 7.5% 8% 8.2% 10% 11% 12% 14% 15% 18% 20% 24% 25% 30%
As Percentage of Salary
Low

0%

1%

2%

3% 3.75% 4%

5%

6%

7% 7.5% 8%

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

9%

10% 15% 27.5%

66

MARCH 2007
VOL. 13 NO. 3

Economic and Compensation Analysis for Select


Federal Reserve Districts
1

9
Minneapolis

12
San Francisco

Chicago

10

Cleveland

Kansas City
St. Louis

11

Boston

New York
Philadelphia

Richmond

Atlanta

Dallas

ALASKA
HAWAII

DesignIntelligence 2007 Greenway Communications, LLC. All rights reserved.

ight times per year, the 12 Federal Reserve Banks, which comprise the
Federal Reserve Board districts, report on current anecdotal economic
information gathered from economists, market experts, and a range of
other sources. These reports are compiled on a rotating basis by each District
bank and published in what is commonly referred to as the Beige Book.
DesignIntelligence has examined the 2007-2008 Salary and Compensation
Survey data and compiled respondent salary and reported revenue data on
the basis of a select set of Federal Reserve Districts, in an effort to gauge how
local economic trends coincide with salaries and revenue reporting for the
design professions; each of these select district divisions were determined to
represent a viable sample set. The results of this research, in conjunction with
excerpts from the Federal Reserve Bank summaries, provide an analysis tool
for design managers to gauge the future success of their organizations and
how to best address ongoing economic concerns which continually impact not
only the retention of quality clients and design projects, but salaries, budgets,
the availability of talent, and profit projections for the coming years. The
Federal Reserve Summaries presented here are from January 2007.

MARCH 2007
VOL. 13 NO. 3

Second DistrictNew York


Manufacturers have grown less positive
in their assessment of current business
conditions in early January, though they
remain optimistic about the near-term
outlook, and contacts note some intensifying in price pressures.
Construction and Real Estate
New York Citys office market tightened
further in the final months of 2006,
while housing markets and residential
construction activity were mixed. Lower
Manhattans office vacancy rate fell by
more than a full point to 7.1 percent
from November to December, while
Midtowns rate edged down to 5.6
percent; both are at their lowest levels
in more than five years. A contact at
a leading Manhattan commercial real
estate firm notes that there is relatively
little new office space currently under
construction.

Firm Revenue Growth


District 2
More than
20%

18-20%

0%
1-4%

12-15%

4-6%
9-12%

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

homebuilders report that the market


stabilized somewhat in December but
remains weak. Discretionary sellers in the resale market are reported
to be withdrawing from the market,
which has reduced the inventory of
Single family construction activity in
existing homes on the market, but has
New York and New Jersey, as measured
also reduced the pool of new home
by housing permits, continued to weaken
buyers. Builders indicate that they have
in November, slipping by roughly 30
substantially cut back plans for new
percent from a year earlier, but multidevelopment in New Jersey (especially
family permits were roughly on par with
in active-adult communities) and this
a year earlier. More recently, New Jersey

67

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MARCH 2007
VOL. 13 NO. 3

is seen as slowing construction activity in 2007. While the rental supply is


constrained by a limited number of new
rental buildings under development, a
Economic activity in the Fifth District
significant proportion of new condos
expanded modestly since our last report,
are being bought by investors, who
with slowing activity in some sectors
have then leased them.
offset by firming growth in others.

Fifth DistrictRichmond

Financial Developments
Small to medium-sized banks in the
District report decreased demand for
all types of loans, on balance most
notably in the residential mortgage
category, for which 63 percent of
bankers report a decrease in demand
and no bankers report an increase.
Respondents also indicate continued
declines in refinancing activity. Bankers report some tightening in credit
standards on commercial and consumer
loans but no change in standards for
residential mortgages. Bankers indicate
a decrease in loan rates for residential
and commercial mortgages, but rates
remained unchanged in all other loan
categories.

Manufacturing measures moved a bit


lower as demand for some lines softened.
Housing activity edged higher, as sales

Firm Revenue Growth


District 5
More than
20%

1-4%
6-9%

18-20%
9-12%
12-15%

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

MARCH 2007
VOL. 13 NO. 3

firmed and home inventories eased lower


in some areas. Commercial real estate
agents noted that conditions in the sector
remained strong, and construction and
leasing activity was steady in recent
weeks. District labor markets continued to be taut, with strong demand for
workers, especially in urban areas. Price
pressures were mixed, with some upward
drift apparent in raw material costs.
Finance
District bankers reported an uptick in
lending activity since our last report.
The demand for residential mortgage
loans moved up in some pockets within
the District. A Charleston, S.C., agent
attributed unusually strong December
activity to continued low interest rates.
In Greenville, S.C., a contact noted that
a new program to help poorer households finance home purchases led to an
increase in loan volume. According to a
Charleston, W.Va., agent, a few particularly nice new housing developments
helped increase activity in that area.
Commercial lending remained strong.
Little change was reported in interest
rates or the rates of delinquent loans.

Real Estate
Residential real estate agents reported a
modest pickup in home sales since our
last report. House prices held steady
across most areas of the District.
Commercial agents across the District
reported that leasing and construction activity remained at generally
strong levels though recent activity was
sluggish. In Washington, DC, market
conditions were characterized as tight,
leading to more construction and rising
rents. In contrast, agents in some midsized cities noted steady activity with
varying flat vacancy rates and little
pressures on rents. Across the District,
contacts noted that former commercial
space in downtown areas continued to
be converted to residential uses. Several
agents said that conditions will likely
strengthen in coming months. They
cited increased interest in their areas by
national firms looking to expand.

69

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MARCH 2007
VOL. 13 NO. 3

Sixth DistrictAtlanta
Reports from District contacts indicated, on balance, that business activity
expanded modestly in late November
and December. Continued weakness in
housing markets, especially in Florida,
was reported by realtors and homebuilders, and low levels of mortgage
loan demand continued to be noted
by regional bankers. Several contacts
in housing-related manufacturing
and transportation operations noted
declining orders for building materials. However, post-hurricane rebuilding along the Gulf Coast continued to
boost the construction industry in that
area. Labor markets remained tight in
several industries, while price pressures, particularly in the construction
industry, have eased in most parts of
the District.
Real Estate
Weakness continued to be noted in
District housing markets, with Florida
reporting the largest declines in sales
and new construction. Home sales and
construction levels were more mixed
elsewhere in the District, although
inventories of homes for sale remained

high across much of the region. Most


Florida real estate agents reported
price reductions on existing homes for
sale, while there were scattered reports
of price declines in other parts of the
District as well. In Southern Louisiana
and Mississippi, the outlook for residential construction appears to be strong.
Weak market conditions are expected to

Firm Revenue Growth


District 6

0%

1-4%

More than 20%

4-6%
6-9%
18-20%

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

MARCH 2007
VOL. 13 NO. 3

persist over the next several months in


most other areas.
Nonresidential development in the
District remained at healthy levels, with
infrastructure repairs and improvements
continuing to dominate activity in late
November and December. Reports from
contacts indicated that District commercial real estate markets improved late in
the year as office occupancy and rental
rates increased.
Manufacturing and Transportation
Factory activity remained mixed, and
the slowdown in residential construction
affected producers of building materials.
Employment and Prices
According to most reports, hiring trends
remained positive during late November
and December. Hiring in the construction industry slowed in the residential
component, but this has been partly
offset by rising payrolls in the commercial construction segment. In the New
Orleans area, hiring is described as
brisk, with many workers relocating
from other areas to take advantage of
the employment opportunities. Strong
demand for skilled workers continued

in the energy sector, pushed by strong


exploration and production in the Gulf
of Mexico.
Prices for some construction supplies
continued to decline in December. Contacts noted that the cost of
concrete, steel, copper, and framing
lumber are all down from recent highs.
However, it was also noted that prices
were well above the levels experienced
two years ago. Gulf Coast contacts
reported that construction costs had
not declined as much as other areas
because of strong local demand. Also,
contacts in coastal areas continued to
express concern about rising residential
and commercial property insurance
costs. Retailers reported that strong
competition continued to limit price
increases on most goods.
FEDERAL RESERVE
DISTRICT 6
Partner/Owner
Low Mean: $137,840.00
High Mean: $184,000.00
Principal Non Owner
Low Mean: $99,000.00
High Mean: $131,333.33

71

72

MARCH 2007
VOL. 13 NO. 3

Seventh DistrictChicago
Construction and Real Estate
Residential construction continued
to fall in the District, though the
declines were smaller than in the
previous reporting period. Homebuilding slowed in Michigan, while one
contact saw signs of a recovery in the
Chicago area. Builders reported that
the supply of unsold, speculative homes
remained high and that showroom
traffic edged down. Nonresidential
construction expanded slowly, led by
office construction in the Chicago
area. Demand for office space was
strong in most cities in the District; the
lone exception was the Detroit area.
Commercial vacancy rates were little
changed, and there were no reported
cancellations of projects.
Manufacturing
Manufacturing activity expanded at
a slower pace in late November and
December than in the previous reporting period. Contacts reported particular strength in the energy, aviation, and
aeronautical industries; manufacturers
in many other industries were planning
to scale back production in 2007 after

sluggish sales at year-end led to rising


inventories.
Several manufacturers reported increasing exports, which they attributed to
improving economic conditions outside
the US and a lower dollar. The weakness
in residential construction continued to
dampen sales of smaller construction
equipment and wallboard.

Firm Revenue Growth


District 7

More than 20%

1-4%

4-6%

18-20%

9-12%

6-9%

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

MARCH 2007
VOL. 13 NO. 3

Banking and Finance


Household lending activity moderated further, while commercial lending
was little changed from the previous
reporting period. Business lending was
mixed by loan type. Asset-based lending remained steady; equipment leasing
activity continued to show solid increases; and commercial real estate lending
declined in the most recent month but
remained up significantly from a year
ago. A commercial real estate developer
said there was still lots of capital available to buyers, and buyers were increasing the amount of leveraged financing
used in purchases. Commercial lending
conditions continued to be competitive and interest rate margins remained
narrow.
Prices and Costs
On balance, non wage price pressures
continued to ease a bit, while overall
wage increases were similar to the previous reporting period. On net, raw materials prices were down slightly or little
changed at high levels. However, one
contractor said that volatility in materials prices has made it difficult to predict
the costs of projects moving forward.

Tenth DistrictKansas City


Growth in the Tenth District economy
slowed to a modest pace in December
and early January, but expectations
suggested higher levels of activity in the
coming months.
Manufacturing
Growth at District manufacturers edged
down in December and early January, though plant managers expected

Firm Revenue Growth


District 10

0%
More than 20%
1-4%

15-18%

4-6%
9-12%

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

73

74

MARCH 2007
VOL. 13 NO. 3

Percentage of Medical Paid


for Full Time Employees
50%
60%
63%-66%
65%
65%-82%
65%-85%
70%
75%
80%
80%-100%
85%
87%
90%
95%
98%
99%
100%
DesignIntelligence 2007 Greenway Communications,
LLC. All rights reserved.

activity to rise in the future. Plant


managers reported slower growth in
production, employment, and shipments.
However, some manufacturers reported
that new orders rose in December, and
capital expenditures were above year-ago
levels.
Real Estate and Construction
Residential real estate activity continued to decrease in December and early
January, while commercial real estate
activity remained solid. Commercial real
estate sales were largely unchanged from
a month ago. However, absorption of
office space increased in most cities, and
vacancy rates throughout the District
were lower than a year ago. As a result,
office prices and rents increased from
a month ago and several respondents
expected these increases to continue.
Commercial real estate contacts anticipated adjustments to absorption and
vacancies reflecting a firm market, even
while sales were expected to be flat in
the coming months.
Banking
Bankers reported that loans increased
somewhat since the last survey, while
deposits held steady. Demand for
commercial and industrial loans and
commercial real estate loans rose, while
demand for residential mortgage loans
edged down.

MARCH 2007
VOL. 13 NO. 3

Twelfth DistrictSan Francisco


The Twelfth District economy expanded
at a moderate pace during the latest
survey period. Overall price inflation
remained modest, though growth in labor
compensation ticked up slightly. Activity in District housing markets slowed
further, while demand for commercial
real estate grew at a modest pace.
Wages and Prices
Much of the growth in labor compensation during this survey period was reported to be in non-base-wage components

Firm Revenue Growth


District 12
More than
20%

18-20%
15-18%

0%

1-4%
6-9%

9-12%
12-15%

DesignIntelligence 2007 Greenway Communications, LLC.


All rights reserved.

such as bonuses and commissions and


employer-provided health-care benefits.
Contacts indicated that compensation
growth was considerably higher for
select groups of skilled workers, notably
in the health-care, finance, and technology sectors, and in areas with very tight
labor markets, such as Idaho and Utah,
than it was overall.
Real Estate and Construction
District residential real estate markets
cooled further, while demand for
commercial real estate grew modestly.
Slower home sales continued to dampen
residential construction activity, particularly for condominiums. Continued
growth in demand for commercial
and industrial space was evident in
further reductions in vacancy rates and
increases in rental rates in most areas.
Construction activity for commercial
and public projects continued to expand,
largely offsetting the decline in residential construction, although the pace of
growth was slower than earlier in 2006.
Financial Institutions
Demand for commercial and industrial
loans continued to outpace demand for
residential loans, owing in large part to
the drop-off in mortgage originations
and refinancing.

75

76

MARCH 2007
VOL. 13 NO. 3

Association Executive
Salary Summary
Organization
American Institute of Architects

EVP/CEO

Title

Compensation
490,627

Total
Other
16,800 $ 507,427

CFO

173,176

12,997 $ 186,173

President

285,000

88,776 $ 373,776

American Council of Engineering Companies

Director Finance

112,100

American Society of Interior Designers

Executive Director

230,000

23,934 $ 253,934

International Interior Design Association

EVP/CEO

136,704

750 $ 137,454

Executive Director

152,411

35,172 $ 187,583

President

166,667

33,450 $ 200,117

National Society of Professional Engineers

Executive Director

222,038

27,604 $ 249,642

American Society of Civil Engineers , Inc.

Executive Director

306,786

Executive Director/CEO

192,624

37,217 $ 344,003
18,118 $ 210,742

National Assoc. of Home Builders of the US

CFO

242,179

20,691 $ 262,870

National Assoc. of Home Builders of the US

EVP/CEO

729,710

53,207 $ 782,917

American Institute of Architects


American Council of Engineering Companies

Construction Management Assoc. of America


Design-Build Institute of America

American Planning Association

Associated General Contractors of America


Associated Builders and Contractors
American Society of Landscape Architects
Industrial Designers Society of America
The Business Roundtable

$ 112,100

CEO

369,357

34,249 $ 403,606

President/CEO

403,786

28,554 $ 432,340

Executive Vice President

198,535

47,251 $ 245,786

Executive Director
President

$
$

163,642
982,406

$
$

56,631 $ 220,273
424,503 $ 1,406,909

Source: IRS 990 tax filings; 2005. Some salary reports may reflect overlapping terms.

MARCH 2007
VOL. 13 NO. 3

77

CUPA-HR 20062007
National Faculty Salary Survey
All Institutions

UN-WEIGHTED AVERAGE
2005-06

2006-07

WEGHTED AVERAGE
2005-06

2006-07

04.02 Architecture
Professor

$87,930

$82,336

$88,992

$85,955

Associate Professor

$67,977

$65,553

$69,901

$67,156

Assistant Professor

$55,018

$52,911

$54,953

$53,122

New Assistant Professor

$55,972

$54,492

$55,807

$55,295

Instructor

$45,947

$47,060

$46,143

$45,076

04.03 City/Urban, Community & Regional Planning


Professor

$92,028

$85,733

$92,244

$86,947

Associate Professor

$73,725

$69,230

$70,828

$68,257

Assistant Professor

$56,796

$55,848

$57,612

$56,475

New Assistant Professor

$54,507

$53,072

$54,799

$54,036

Instructor

Insufficient Data

Insufficient Data

Insufficient Data

Insufficient Data

04.06 Landscape Architecture


Professor

$86,996

$86,380

$87,876

$84,332

Associate Professor

$71,491

$66,105

$70,755

$67,085

Assistant Professor

$56,308

$52,600

$56,385

$52,965

New Assistant Professor

Insufficient Data

$53,506

Insufficient Data

$51,755

Instructor

Insufficient Data

Insufficient Data

Insufficient Data

Insufficient Data

14.08 Civil Engineering


Professor

$100,718

$98,225

$108,152

$104,569

Associate Professor

$79,077

$76,490

$82,131

$78,711

Assistant Professor

$69,191

$67,455

$69,986

$68,327

New Assistant Professor

$67,024

$67,011

$68,168

$67,583

Instructor

$53,259

$51,097

$52,271

$52,032

14.35 Industrial Engineering


Professor

$103,453

$101,273

$114,239

$108,911

Associate Professor

$79,191

$76,938

$82,574

$79,654

Assistant Professor

$70,641

$67,694

$72,473

$69,638

New Assistant Professor

$71,379

$67,601

$71,513

$68,466

Instructor

Insufficient Data

$51,247

Insufficient Data

$48,935

Source: 2007 CUPA-HR


NOTE: Un-weighted data more precisely reflects what institutions are paying in that the average or median salary for a position is included only once for
each participant school. Weighted data, in contrast, is more an indicator of what incumbents are earning in that the average or median salary for a position
is included once for each incumbent, thereby giving more weight to salaries paid by institutions with large numbers of incumbents.

78

MARCH 2007
VOL. 13 NO. 3

Editor

James P. Cramer
jcramer@di.net

Managing Editor
Daniel Downey
ddowney@di.net

Associate Editor

DI Conferences
Design Futures Council
Executive Board Meeting
May 1617, 2007
New York City
Focus: Integration Strategies
Speaker: Chris Trimble

5th Annual CEO-COO Conference


May 1718, 2007
New York City
Co-hosted by A/EFCG and
The Greenway Group
www.greenway.us
www.efcg.com
Focus: Leadership and
Ownership Measurement

6th Annual Leadership Summit on


Sustainable Design
Hosted by the Design Futures Council
and the University of Texas at Austin
October 1416, 2007
Four Seasons Hotel
Austin, TX
www.di.net
Focus: Inspiring Change

Jennifer Evans Yankopolus


jyank@di.net

Art Director/Cartoonist
Austin Cramer
acramer@di.net

Circulation

Tonya Smith
tsmith@di.net

DI Conferences, DFC Summits


Susan Boling
sboling@di.net

Editors At Large

Scott Simpson, Kerry Harding, Paul Doherty

Design Futures Council


Executive Board:

Peter Beck, Phil Bernstein, Friedl Bohm,


Daniel Coffey, Jim Cramer (President), Clark
Davis, Phil Enquist, Steve Fiskum, Jim Follett,
Neil Frankel, Roger Godwin,
Robert Grupe, Gerald Hammond,
H. Ralph Hawkins, Gregory Hunt, Don Kasian,
Matthias Krups, Chris Luebkeman, Janet Martin,
Iain Melville, Ray Messer, Gordy Mills,
Doug Parker, Thompson E. Penney, Dennis
Pieprz, Barry S. Reid, Steve Senkowski,
Scott Simpson, Cecil Steward, Jack Tanis,
Carole C. Wedge, Gary Wheeler, Roderick Wille,
W. Kenneth Wiseman, Arol Wolford
DesignIntelligence is published by
Greenway Communications LLC, for the Design
Futures Council, a Washington DC based think
tank exploring trends, changes, and innovation
in the AEC industry.

Design Futures Council Memberships:


Managing for Tomorrow Today:
Exploring the New DNA of Professional
Practice Leadership
January 2324, 2008
La Jolla, CA
www.di.net
Focus: Leadership
Speakers: Scott Simpson,
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Individual: $365 per year


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MARCH 2007
VOL. 13 NO. 3

79

DESIGN FUTURES COUNCIL


The Design Futures Council is a global network of design and construction industry leaders with
the mission to explore trends, changes and new opportunities in design, architecture and building
technology for the purpose of advancing innovation and leading members to new levels of success. The
Design Futures Council members come together throughout the year to share their experiences and
create fresh strategies for the future of design and construction.
The Design Futures Council is committed to advancing the AEC industry by providing information on and
understanding of future trends and issues. Through DesignIntelligence, our Report on the Future,
think-tank sessions, seminars, webcasts and research, we are committed to helping re-invent the art
and business of design.

RESEARCH SUPPORT
PROVIDED BY:
Design Futures Council Professional Partners:
ARUP The Beck Group Communication Arts
Cannon Design DAG Architects Daniel P. Coffey
& Associates DesignWorkshop Durrant Gensler
Georgia Institute of Technology
Hammel, Green & Abrahamson HKS Inc. HOK
Kasian Architecture LEO A DALY LS3P Associates LTD NBBJ
Sasaki Associates Shepley Bulfinch Richardson and Abbott
Skidmore, Owings & Merrill Steed Hammond Paul
KlingStubbins Turner Construction Company
Walter P Moore & Associates
Design Futures Council Institutional Affiliates:
Joslyn Castle Institute for Sustainable Communities;
Texas Board of Architectural Examiners;
Precast/Prestressed Concrete Institute;
Auburn Univ. College of Architecture, Design and Construction;
University of Wisconsin, Milwaukee School of Architecture & Urban Planning;
University of Tennessee College of Architecture and Design;
The School of Building Arts, Savannah College of Art & Design;
The American Institute of Architects;
Virginia Commonwealth University Department of Interior Design;
American Society of Landscape Architects;
Univ. of Arizona College of Architecture and Landscape Architecture

ISBN-13:

ISBN-10:

978-0-9785552-2-1
0-9785552-2-8




  

March 2007
Number 208