It’s About People: The role of HR systems for interior design firms

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This article was originally published in Canadian Interiors.

As interior design and architectural firms grow, the demands on their human resources (HR) systems expand exponentially. Effective HR practices not only support sustainable business growth but also create an environment that fosters creativity and collaboration—key elements in design industries. Yet many firms tend to prioritize excellence in design and project output over internal workforce management. This oversight can lead to significant challenges as firms scale up. By implementing structured HR systems early on, design firms can streamline operations and maintain their creative focus while mitigating workforce challenges.

The Need for Tailored HR Systems in Design Firms

Design firms are hubs of innovation where form and function must work in harmony. Like a thoughtfully designed interior, a well-structured HR system allows for smooth operations and a comfortable, energized workplace. However, many firms may not have human resources on the radar until they face high turnover, recruitment difficulties, or workplace dissatisfaction.

According to the 2023 Canadian Architectural Practices Benchmark Report conducted by the Royal Architectural Institute of Canada (RAIC) and Canadian Architect, HR will be one of the greatest challenges to the profession in the next five years. These issues can hamper morale and productivity for creative businesses that rely on successful collaboration. The key is adopting proactive HR strategies that facilitate an innovative and functional workplace atmosphere.

Gen Z employees entering the workforce bring a new challenge to the industry. Unlike older generations who honed social skills in an in-office setting, many Gen Z workers were hired during the pandemic and started their careers working remotely, and many still are. In this context, many lack experience in navigating professional dynamics with colleagues, managers, and clients. This can lead to feelings of isolation and potentially impede collaboration and, by extension, project outcomes.

Practical HR Solutions for Design Firms

Once the essential HR elements are in place—such as a well-defined employee handbook, accurate job descriptions, and a basic performance review system—design firms can expand their HR practices to support new and existing talent. Below are five practical strategies to implement for growing interior design firms.

1. Build a Strong Company Culture

In a creative industry, company culture can be a deciding factor for both recruitment and retention. A positive, engaging workplace culture keeps employees motivated and connected to the firm’s mission.

  • Design-Focused Team Building Activities: Incorporate activities that stimulate creativity, such as team visits to design museums, collaborative design workshops, or even escape rooms with design puzzles.

  • Recognition: Recognize outstanding design work through awards, public acknowledgments, or even social media shout-outs. Regular recognition keeps morale high, and employees engaged.

  • Work-Life Balance: Encourage flexible work hours, remote work options, or even mental health days to help employees manage the demanding nature of design work. This is especially important for younger workers who may feel overwhelmed by the intensity of the industry.

2. Prioritize Performance Management

Effective performance management systems not only ensure that your team is working towards the firm’s goals but also enhance individual employee growth.

  • Set Clear, Measurable Goals: Align goals with individual development and project outcomes. For example, track key metrics like project completion times, client satisfaction, and adherence to design standards.

  • Conduct Regular Check-ins: Don’t wait for annual reviews to offer feedback. Regular, informal check-ins can help employees stay on track and feel supported.

  • Use a Mix of Metrics: Performance in interior design and architecture is both objective and subjective. Use a blend of metrics, from project timelines to creativity in design solutions, to assess employee performance comprehensively.

3. Focus on Recruitment and Retention

Talent is the lifeblood of interior design, and competition is fierce. Holistic recruitment and retention strategies should be a top priority, especially as the industry grapples with maintaining profitability.

  • Develop a Structured Interview Process: Include questions addressing design skills, creative problem-solving, and project management. This ensures that new hires not only fit culturally but also meet your firm’s technical demands.

  • Create an Onboarding Checklist: A thorough onboarding process integrates new employees quickly and smoothly into the team. This checklist could include mentorship programs or design software training sessions to ensure new hires hit the ground running.

  • Implement a Referral Program: Leverage your current employees’ networks to tap into a wider talent pool. Offer incentives for successful referrals, which can help bring in high-quality candidates.

4. Stay Compliant

With your firm’s growth comes the need for more robust compliance measures. Interior design firms must adhere to legal requirements regarding employment, intellectual property, and client confidentiality.

  • Regularly Review Employment Contracts: As your firm evolves, ensure employment contracts reflect updated roles, responsibilities, and benefits.

  • Classify Employees vs. Contractors: Design firms often use freelancers or contract workers. Make sure the classification between full-time employees and contractors is clear to avoid legal complications.

  • Intellectual Property Policies: Establish clear guidelines on ownership of design work, especially for creative roles. Define who retains the rights to design concepts and final products.

 5. Scale Your HR Practices as You Grow

As your firm grows, your HR practices will need to evolve. Whether you choose to hire an in-house HR specialist or work with an external consultant, scaling your HR processes is critical to maintaining smooth operations.

  • Hire HR Expertise: Once your firm reaches a certain size, consider bringing in HR professionals to handle the complexities of workforce management. This allows leadership to focus on design work while ensuring the HR systems are sophisticated enough to handle a larger team.

  • Regularly Review and Update HR Systems: Keep your HR systems current by conducting regular reviews to ensure they meet your firm’s needs. Gather employee feedback to refine practices, ensuring that your systems are responsive to the evolving workforce.

  • Employee Feedback: Create channels for ongoing employee feedback to understand their concerns and proactively improve the employee experience. This could take the form of anonymous surveys or open feedback sessions.

HR systems are often overlooked in interior design and architecture firms, where creativity and project execution tend to take precedence. However, building effective HR practices is critical for scaling and sustaining growth. By prioritizing recruitment, managing performance, fostering a strong culture, staying compliant, and scaling HR systems as needed, design firms can create environments that attract top talent and retain it. In the long run, these HR investments will free up more time for what matters most—designing beautiful, functional spaces.