For architecture and engineering firms, the competition for skilled professionals has never been tougher. The demand for qualified architects, engineers, and project managers far exceeds supply, while employee expectations about work-life balance, flexibility, and purpose continue to evolve.
Smaller and mid-sized firms often feel the pressure most. They’re competing against large, global firms that can offer higher salaries, flashier perks, and name recognition. Yet, size isn’t everything. Many design professionals are looking for something more meaningful—a workplace where they can make an impact, grow their careers faster, and maintain a healthy balance between creativity, collaboration, and life outside of work.
That’s where small and mid-sized A&E firms have an edge in the job market. They can offer greater flexibility, closer mentorship, stronger culture, and opportunities to take on leadership roles earlier in their careers. But to compete effectively, firms must be intentional about how they position themselves and how they structure their benefits, culture, and policies to attract the next generation of talent.
Below, we explore eight key employee benefits and strategies that can help architecture and engineering firms stand out, attract top performers, and retain them for the long term.
Compensation still matters, and transparency goes a long way. New graduates are acutely aware of market rates thanks to online resources and social media discussions. Experienced professionals, meanwhile, are fielding multiple offers—sometimes from outside the industry.
Start by benchmarking compensation using reliable data. Tools like BQE’s Architecture Salary Report and Engineering Salary Report, along with the Interactive AE Salary Map let you compare pay ranges by location, role, and firm type. These insights help you set competitive salaries that align with market realities while maintaining profitability.
Remember: salary gets candidates in the door, but career development, culture, and flexibility keep them there.
Compensation reviews shouldn’t happen only when someone threatens to leave. Build an annual review process that benchmarks your firm’s pay against inflation, industry standards, promotions, and regional data. If your compensation lags, you’ll struggle to attract and keep top talent, especially project managers and licensed professionals who are in short supply and can find other jobs quickly. You don't want to create a situation where people have to switch companies to get deserved raises.
When you make salary adjustments, communicate the reasoning behind them. Transparency builds trust and shows your team that compensation decisions are grounded in data, not gut instinct. Sometimes a raise may simple be a cost of living adjustment. Other times it may be more significnat to recognize performance, a significant career achievement (like obtaining licensure), or because the firm has had a strong financial performance. Make sure you communicate some of the reasons behind the updated offer.
According to the 2024 AIA “Advancing Careers” Guide, firms that invest in career growth strategies report lower turnover and improved retention. For design professionals, growth isn’t always just about pay, it’s about purpose and self improvement as well. Talented architects and engineers want clear pathways to advancement and opportunities to take on responsibility early in their careers. They want to express their ideas and feel like they are making strong contributions to firms and projects. Sometimes having a say in decisions or a voice in the design is as important as salary increases.
Smaller firms can compete with larger organizations by formalizing their career development frameworks. Define what it takes to move from designer to project manager to associate, and make sure your team understands the steps involved. Offer mentorship programs, professional development budgets, and leadership opportunities that allow your employees to see a future within your firm. Make this a documented process that your employees can reference in your firm's handbook or on an internal wiki. Discuss advancement in annual reviews as well as 1:1 meetings throughout the year.
When people can visualize their trajectory, they’re less likely to look elsewhere. Show them how they can move up, advance their career, and grow into new roles. According to the Engineering Management Institute, career growth opportunities are the single most important benefit nearly half (48%) of engineers say their company can provide.
The pandemic changed expectations permanently. Flexibility in work location and hours is now a baseline expectation, not a perk. Older leadership teams who grew up with in-office work cultures have to adapt to the desires of the new generations. Hybrid and remote work are here to stay, particularly for tasks that don’t require daily site presence.
For A&E firms, this can mean allowing design staff to work remotely part of the week while project managers maintain an in-office presence for collaboration and client meetings. Many firms are also experimenting with four-day workweeks or core-hour scheduling. And as more firms move to value pricing or fixed fees, the outcome of work is much more important than simply counting hours. Make sure you are listenting to your team, keeping a pulse on what other firms are doing, and build a structure that balances the needs of all roles and people at the firm. Again, this is a place you have complete control over and can set you apart from other businesses in a way that people want to work for your firm.
Flexibility helps attract younger professionals, retain experienced staff seeking a better balance, and improve productivity across the board.
Architecture and engineering are demanding professions. Long hours and tight deadlines can lead to burnout, which is one of the top reasons employees leave firms. Competitive paid-time-off (PTO) policies and a culture that truly supports taking that time are critical.
Encourage staff to use their vacation days and create project schedules that accommodate downtime. Consider offering floating holidays, volunteer days, or sabbaticals for long-tenured employees. When I was advising firms, I always recommended having the whole firm close from Christmas to New Year's as well as the week of the 4th of July (in the USA). These group breaks mean everyone can unplug and won't be bothered by emails, calls, and requests when on a personal vacation. This strategy benefited everyone at the firm and was particularly popular with firm owners. A rested, recharged team is a creative and productive one.
Unlimited PTO has become a popular talking point, but implementation matters. For smaller firms, a flexible time-off model may be a better approach—one that trusts employees to manage their workload responsibly while ensuring coverage for active projects.
The key is accountability and communication. Empower your team to plan ahead and balance project demands with personal needs. When implemented thoughtfully, flexible PTO policies boost morale, improve retention, and demonstrate trust. Unlimited time off may work, and can definitely cut down on administrative work tracking hours. It may be the right fit for a tight-nit team that has built trust. It can also be an effective benefit for career milestones. For instance, it could be a benefit granted to anyone who stays at the firm for over 5 years, incentivizing long-term commitment to the company.
Offering a retirement plan, like a 401(k) or a SIMPLE IRA — or better yet, matching contributions — is one of the most powerful ways smaller firms can compete with larger employers. Modern payroll and HR platforms make it easier than ever to set up and manage plans with minimal administrative effort, and low fees. I ran a small firm of 6 people and we offered a SIMPLE IRA with a 2% match. There is really no reason not to offer this benefit to your team.
Many A&E professionals prioritize long-term financial stability. Promoting your firm’s investment in employee retirement shows that you value their future beyond the next project deadline. Plus, it is compensation that may not be taxed, meaning a it is more valuable to an employee than salary dollars.
Tip: Highlight your firm’s full compensation package, including benefits, retirement contributions, and bonuses. Total compensation often surprises candidates comparing offers on salary alone.
Health insurance remains a cornerstone benefit, although it is an expensive one. Still, with the USA health system built on companies covering the cost of healthcare, it is an expense every business must be responsible for (and one of the main reasons all businesses should advocate for universal healthcare, to take this cost off the books of small businesses).
However, firms can go further. Architects and engineers face high stress levels, particularly during deadlines or construction administration. Promoting wellness through mental health resources, ergonomic workspaces, bike-to-work benefits, fitness reimbursements, or walking meetings helps sustain energy and creativity. Look for creative ways to encourage a healthy lifestyle, and talk to your staff about what would help them mentally and physically.
Small firms can also build a sense of belonging through cultural initiatives like company lunches, offsite design charrettes, or wellness challenges, that strengthen morale and reduce turnover.
In today’s tight labor market, smaller A&E firms can’t always outspend the big players but they can out-care, out-mentor, and out-communicate them. As a small firm you can be more creative and flexible and aren't stuck following corporate standards. Building a benefits program that reflects your firm’s values, supports employee growth, and promotes balance will help you attract top talent and keep them for the long haul.
Use and share the BQE A/E Salary Reports and the Salary Map Tool to benchmark pay, communicate transparency, and build confidence with your team that they’re being compensated fairly. Pair that with meaningful professional development, flexibility, and a culture that celebrates people, not just projects, and you’ll have a workplace where the best talent wants to stay.