Three major takeaways from the Small Firm Compensation Report

AIA recently published the 2023 Small Firm Compensation Report, the definitive guide to salaries and benefits at small firms. The report is based on small firms that are legally structured as a sole proprietorship or have fewer than three architectural staff employees.  

In 2023, 43% more firms and 69% more positions reported than in 2021.  

1. Employee salaries at small firms have increased. 

Salaries at small firms increased across the board from 2021 to 2023, following a pandemic-induced downturn in salaries in 2020 to 2021. Salaries for solo architects increased by 12%, increased by 8% for staff architects, and increased by 10% for emerging architectural professionals. Additionally, nearly two thirds of small firms reported that they offered a salary increase to architecture staff when an unlicensed employee became licensed.  

Bonuses also increased across the board at small firms, with 77% of small firms with five or more employees offering discretionary annual bonuses with 46% offering performance bonuses.  

2. Small firms are implementing a variety of tools to increase equity and enhance employee culture.  

More than half of small firms reported hiring and promoting employees with diverse backgrounds while 19% of small firms with five or more employees indicated that they hired diverse candidates across all leadership roles in 2022.  

Additionally, nearly 1 in 10 small firms indicated that they applied the AIA’s Guide for Equitable Practice in 2022. 

3. More small firms are allowing remote work at least one day a week 

While the overall share of small firms offering employees any type of remote work was unchanged from 2020 at 80%, fewer small firms with three or more employees reported offering remote work in 2022. Overall, the average share of staff working remotely declined from 77% in 2020 to 58% in 2022.  

While the share of small firms allowing staff to work remotely all or most days declined, there was an increase in the share of firms allowing employees to work remotely at least one day per week, a few days a month, or on an ad hoc basis.