Compensation Planning for Engineering and Construction Firms – 2016 Industry Survey
In today’s economic climate, finding and retaining employees is becoming increasingly challenging for U.S. engineering and construction (E&C) firms. The E&C industry is now in its ninth consecutive year of growth, a phenomenon for companies familiar with an average cycle of seven years between downturns, but construction spending still falls short of pre-recession levels. Continued demand has strained the labor pool, particularly for specialized jobs. As a result, companies have sought innovative and unique approaches to hiring and retaining top talent. Naturally, employee compensation has become a key focus area for these companies.
The study’s results demonstrate that E&C employers clearly acknowledge the need for sound compensation practices. However, in many instances, coordinated strategic planning for pay plans is infrequent—if it occurs at all. The study's key findings can be categorized within two areas:
- Alignment of compensation plans with corporate strategies
- Effectiveness of compensation plans
