Construction is a people business (much like CPA firms). Labor shortage is always listed near the top of any list of risks construction firms face. Finding and keeping professionals with the technical knowledge and skills to help lead your business is key to creating and maintaining your culture and optimizing service delivery. When recruiting, there’s always some uncertainty as to whether your salary offering is above or below market. Knowing the market rates for key positions is critical to acquiring talent.
Calvetti Ferguson is a member of CICPAC, a network of CPA firms focused on understanding and serving the construction industry. Calvetti Ferguson, CICPAC, and PAS, Inc. partnered to compile the 2021 Construction Compensation Report.
About the survey
The 2021 Construction Compensation Report analyzes compensation rates for a Senior Project Manager, Senior Estimator, and Financial Controller, based on surveys of construction companies. The information is disaggregated into firm size and segment, to help you refine your salary offering based on the characteristics of your business.
How to use the survey
The survey results have been summarized using a variety of categories and sub-breakdowns in order to provide a multidimensional look at the salaries paid for three chosen positions. It is important that as you evaluate the survey information, you do not take any one variable by itself. Look at the three or four categories that would best apply to your situation for each position. We suggest starting with the Total Revenue category for your base sort.
In matching your positions with the survey positions, use the position description (not the title) to determine the best fit with your company. If the content of the survey position description represents the majority of the functions performed by your incumbent, then there probably is a match. It may be necessary to look at two survey positions to test your compensation levels against the survey. For example, a Project Manager may also perform Senior Estimator functions on a regular basis. Therefore, you need to consider the importance of each of these functions in evaluating the survey data.
It is important to consider the information as a general indicator of compensation practices in the construction industry. Factors not covered by the survey such as your company’s organizational structure, economic conditions of your area, and the like need to be considered in evaluating the survey data and how it applies to you. Remember, you cannot take any one number from the survey and use it exclusively. You must temper the survey information to meet the uniqueness of your company.
Also, compensation directly related to the profitability of a company such as bonus will vary from survey to survey. Again, it is important to view this information as a general indicator of what other organizations’ practices include.
To begin your review, we suggest comparing your company data with the national summary of all firms in the survey. In all likelihood, your company’s compensation data will either be higher or lower than the average and median figures shown in the survey. From this point, we suggest that you begin analyzing the various sub-breakdowns and categories of the compensation data which relate to your firm’s demographic profile and unique needs.