Architecture, Engineering and Planning Firms Report Decreased HR Spending in 2010
With the economic downturn the A/E/P and environmental consulting industry has faced in recent years, firms are spending less of their net service revenue on human resources (HR), according a report recently released by ZweigWhite.
Fayetteville, AR, October 21, 2010 --(PR.com)-- With the economic downturn the A/E/P and environmental consulting industry has faced in recent years, firms are spending less of their net service revenue on human resources (HR), according a report recently released by ZweigWhite. The 2010-11 Operating Expenses Survey of Architecture, Engineering, Planning, & Environmental Consulting Firms finds that the median total HR spending as a percentage of net service revenue reached a five-year low of .9% in 2010.
“Over the last year and a half, the industry clamored to find creative ways to reduce general operating and overhead expenses, and maintain some dignity while functioning on Ramen-noodle budgets,” says Christine Brack, PMP, Principal, ZweigWhite Strategic Advisory Services, who provides an in-depth foreword to the 2010-11 Operating Expenses Survey. “The fact is— it costs money to run a firm, and those big and little numbers add up quickly.”
Moreover, according to the report, total HR spending as a percentage of net service revenue has been on a gradual decline in the last few years, dropping from a high of 1.3% in 2007, to 1% in 2008 and 2009, and then to .9% in 2010.
“Cutting costs will have an impact on the recipients—the marketing associate who can’t develop a new postcard, the employees who have to contribute more to their health plan, and the designers who cannot work with the newest software,” Brack adds. “Those hurt but maybe they have to be implemented. Just make sure it is balanced with measures that have even greater impact on cash flow and even less negative effect on the people internally.”
ZweigWhite’s Operating Expenses Survey of A/E/P & Environmental Consulting Firms is a resource for architecture, engineering, planning, and environmental consulting firm leaders and financial managers who want to stay on top of their firms’ operating expenses. This survey covers operating and overhead expenses such as HR, marketing, information technology, rent & utilities, professional liability insurance, and more. The survey data are broken out by firm type, size, region of headquarters, growth rate, client base, and other factors so firm leaders and managers can make comparisons between their firm and other firms just like theirs.
An electronic report or printed book is available for purchase from ZweigWhite at http://www.zweigwhite.com/p-1005-operating-expenses-survey-2010-2011.aspx
About ZweigWhite: ZweigWhite is the nation’s leader in enhancing business performance for architecture, engineering, and environmental consulting firms. The ZweigWhite team consists of experts in strategy, mergers and acquisitions, business valuation, ownership transition, human resources management, finance, marketing, market research, project management and project delivery methods who collectively produce a comprehensive suite of products and services, including advisory, consulting, newsletters, industry reports, executive training, business conferences, and more covering virtually every aspect of firm management. The firm is headquartered in Fayetteville, Arkansas, with additional offices in, Chicago, IL, Durham, NC, and Natick, MA. The ownership of ZweigWhite are investors Eli Global and BIA Digital Partners, with management including Mark Zweig and Ed Friedrichs. For more information contact Sonya Stout at 479.582.5700, or sstout@zweigwhite.com.
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“Over the last year and a half, the industry clamored to find creative ways to reduce general operating and overhead expenses, and maintain some dignity while functioning on Ramen-noodle budgets,” says Christine Brack, PMP, Principal, ZweigWhite Strategic Advisory Services, who provides an in-depth foreword to the 2010-11 Operating Expenses Survey. “The fact is— it costs money to run a firm, and those big and little numbers add up quickly.”
Moreover, according to the report, total HR spending as a percentage of net service revenue has been on a gradual decline in the last few years, dropping from a high of 1.3% in 2007, to 1% in 2008 and 2009, and then to .9% in 2010.
“Cutting costs will have an impact on the recipients—the marketing associate who can’t develop a new postcard, the employees who have to contribute more to their health plan, and the designers who cannot work with the newest software,” Brack adds. “Those hurt but maybe they have to be implemented. Just make sure it is balanced with measures that have even greater impact on cash flow and even less negative effect on the people internally.”
ZweigWhite’s Operating Expenses Survey of A/E/P & Environmental Consulting Firms is a resource for architecture, engineering, planning, and environmental consulting firm leaders and financial managers who want to stay on top of their firms’ operating expenses. This survey covers operating and overhead expenses such as HR, marketing, information technology, rent & utilities, professional liability insurance, and more. The survey data are broken out by firm type, size, region of headquarters, growth rate, client base, and other factors so firm leaders and managers can make comparisons between their firm and other firms just like theirs.
An electronic report or printed book is available for purchase from ZweigWhite at http://www.zweigwhite.com/p-1005-operating-expenses-survey-2010-2011.aspx
About ZweigWhite: ZweigWhite is the nation’s leader in enhancing business performance for architecture, engineering, and environmental consulting firms. The ZweigWhite team consists of experts in strategy, mergers and acquisitions, business valuation, ownership transition, human resources management, finance, marketing, market research, project management and project delivery methods who collectively produce a comprehensive suite of products and services, including advisory, consulting, newsletters, industry reports, executive training, business conferences, and more covering virtually every aspect of firm management. The firm is headquartered in Fayetteville, Arkansas, with additional offices in, Chicago, IL, Durham, NC, and Natick, MA. The ownership of ZweigWhite are investors Eli Global and BIA Digital Partners, with management including Mark Zweig and Ed Friedrichs. For more information contact Sonya Stout at 479.582.5700, or sstout@zweigwhite.com.
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www.zweigwhite.com
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