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On Current New York Architecture OCULUS on current new york architecture Compensations and Awards The New York Chapter of the American Institute of Architects Volume 43, Number 9, June 1982 page2 Oculus OCULUS President's Report Compensation Survey Volume 43, Number 9, June 1982 by Joseph Wasserman Oculus A Change of Emphasis The NYC/AIA has completed a survey Editor: C. Ray Smith This issue of OCULUS is devoted to of Architects compensation. The last Managing Editor: Marian Page two subjects-looking at beautiful such survey was conducted ten years Art Director: Abigail Sturges buildings all designed by local boys, Typesetting: Susan Schechter ago. and architects' business - their fees, The New York Chapter of their <:ontracts, their compensation. I We are gratified with the the American Institute of Architects am sure we all prefer to focus on the participation: 109 out of 310 firms The Urban Center, 457 Madison A venue, awards. The business end of returned the questionnaire, a rather New York, New York 10022 architecture is not romantic, not the high percentage. In fact, the survey 212-838-9670 stuff to stir men's souls. One even accounts for nearly all the feels embarrassed having to concern architectural personnel covered by George S. Lewis, Executive Director oneself with these uncomfortable member firms' sustaining dues-2972 Executive Committee 1981-82: details of practice. After all, none of us owners and employees in all, of which Joseph Wasserman, President entered this profession with business 2495 are architecturally trained. Arthur I. Rosenblatt, First Vice President concerns uppermost in our minds. Tician Papachristou, Vice President The results are predictable. They Robert Siegel, Vice President But as we have all learned, many of us indicate that architectural Terrance Williams, Secretary painfully, we are engaged in a professionals are woefully Alan Schwartzman, Treasurer business/profession, in which the compensated at virtually all levels: Frank Eliseo remuneration is unacceptably low, and William Ellis the business is highly subject to the Starting salaries vary from $10,500 Theodore Liebman Nancy A. Miao adjustments of the economic cycle. In per year in firms of 3-5 persons to Stuart Pertz accountant's terms, we are a FITLOT $14,472 per yefir in offices of 41-100 Mildred F. Schmertz business-First in Trouble, Last out persons. of Trouble. NYC/AIA Staff Only 20% of the architecturally Cathanne Piesla Some of our greatest troubles come trained personnel earn over $35,000 Carol Jones from our fellow professionals, who per year, only 7% over $50,000, and Jeannette Manzo simply underprice the services we less than 2%, perhaps considerably Eileen McGrath render often performing front end less, earn more than $100,000 per © 1982 The New York Chapter of the services at little or no cost. year. American Institute of Architects. I trust that we will begin to raise our The 178 principals surveyed (7% of consciousness on many professional the total architectural personnel) earn Chapter HQ Fund Drive issues; that we, ourselves, will develop total average compensations of a greater respect for the services we $66,000 per year; the median render; and that we will begin to compensation is only $60,000. As of Friday, May 21-press time for charge for them accordingly, realizing this issue of OCUL US - we are that it is impossible to perform a The survey is quite fascinating: there pleased to report that we have responsible professional service are probably endless informative secured pledges from 20 firms and without adequate compensation. statistics that can be derived from the individuals totaling $130,000. mass of data we have gathered. But If we render a top professional they will say the same thing; it's past The results, to date, are very service, our clients will certainly time to put our practices and our lives encouraging; about 60% of the funds recognize the difference; many on a more sound financial basis. needed are now pledged. The average clients-among them developer pledge is approximately $6500. But clients notorious for paying low fees - Brunner Grant to most of these pledges have come in are demanding top quality service, John Gallery from the larger firms. The cream has imaginatively and reliably delivered. been taken. It's time now for all of us to dig into our pockets and make as It is my hope that the New York 1982 Brunner Grant of $10,000 has generous a contribution as possible. Chapter/AJA will p"rovide information been awarded to John Gallery of We need the pledges now. We can and leadership over the coming years Philadelphia for research in writing a wait a few months for the actual gift. in the many areas of changing and monograph on the life and work of Please call or write the Chapter and developing practice. Clarence Stein. Peter Kastl, chairman tell us what you are able to pledge. of the Brunner jury, reports that Ours is a wonderful town to live in. there were 23 submissions covering a Let's make it a great and rewarding wide range of projects. place to practice architecture. Oculus page3 Compensation Committee Report Richard Hayden, Chairman Carmi Bee Sam Haffey Eason Leonard Barry LePatner Frank Munzer Jeff Sydness Joseph Wasserman The Compensation Committee is attitude toward his job and this is consciousness to the point where the pleased to submit this initial report on often reflected in low productivity. elementary facts simply require that the work of the Committee. The Since we don't "invest" much in our we pledge our fullest energies to conclusions of the Committee, reached new employees, we tend not to value making this recommendation a reality. after extensive analysis and their contributions. We don't attach or discussion, are serious, and, in some require much loyalty from those A substantial increase in salary will ways, revolutionary. Our initial employees and we certainly do not almost certainly stimulate greater reactions from the Compensation offer much job security. interest among junior employees. Survey are simple: Firms will hire and financially reward There is a high turnover among only those who contribute to 1. Professional compensation in our younger employees, but, in fact, productivity and profitability. Firms field is woefully inadequate, turnover is damagingly high at all will have a much greater incentive to particularly at the starting levels, but levels of practice. Surveys in other make use of time and labor-saving in fact at all positions-except for a professions indicate that losing an practices. Architectural schools will very small group of principals who employee whose time is billable can be obliged to train young professionals are, perhaps, fairly compensated. cost 2-3 times the employee's annual with merchantable skills. There will salary in terms of lost time and be a weeding out process, long 2. The general lack of profitability, retraining costs. overdue, but at least those that firms and principals alike, appears remain in practice and find jobs, will effectively to preclude any realistic What does the Committee recommend? be assured of a future with reasonable adjustment of employee compensation We recommend primarily that a economic growth potential. without throwing virtually every financial program be implemented prudently managed firm into financial which will enable starting salaries for By stabilizing firm personnel, we will, chaos. qualified architectural school more and more, be selling the graduates to be increased by collective experience and ability of our Annual salaries for starting level approximately 20% each year for the firms with much more commitment to professionals range from $10,500 per next three years from the present quality of product and service. At year in an office of 3-5 persons (23 average starting wage in larger firms present, many firms are so busy firms reporting), to $14,472 in offices of $15,000 per year to approximately surviving that mastering the of 41-100 persons (6 firms reporting). $25,590 by January l, 1985. This architectural process takes a adjustment should be exclusive of any subsidiary role to meeting the payroll. How is a young professional able to further adjustments for inflation. The keep body and soul together at that effect of this increase will bring What will it cost? level of compensation? How can we architects' starting wages to The "cost" of restructuring our levels expect a person to work in an approximately the same level as the of compensation is high, though not so organized and devoted fashion toward neophyte mechanical and structural nearly high as we might expect. A becoming a seasoned professional engineers who are working on our 60% increase in base wages over a when that work is undertaken under projects. three-year period of a starting such an extraordinary economic professional and suitable adjustments disadvantage? Is it any wonder that Given the limited profitability of our at all levels (see accompanying table many of the more together individuals firms, how could we possibly for a hypothetical scenario for a quickly despair of ever being able to contemplate a 60% increase in initial typical 10-man firm), would result in earn a respectable wage and therefore professional salaries over a three year an overall increase in salaries of 35%, drift off into other associated areas period? Our Committee, made up of including an increase in partner draw where the rewards are more some of the best and toughest of15%. reasonable? It is practically professionals in New York­ impossible to evaluate the cost of this representing large, medium size, and Overhead attributed to payroll taxes personnel loss, but we sense that small offices- has met often and and vacations would go up 5% for a many of the most talented young grappled with this problem, and has total increase of 40%.
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