Op-ed: Future-Proofing Your Firm—The Critical Role of HR in the Architectural Workforce

This article was originally published in Canadian Architect.

Leaders in architecture are driven by design excellence and innovation. However, as an HR expert who has worked closely with Canadian architecture firms for years, I’ve observed how the focus on delivering outstanding projects and passion for design excellence can sometimes overshadow internal workforce considerations. To remain competitive and attract top talent, architecture leaders must adopt strategic HR practices. Embracing innovation within the organization is foundational to building future-proof firms. 

The current landscape: Workforce growing pains

Like many specialized fields in Canada, the architecture industry faces significant workforce challenges.

An Aging Workforce and Skills Gap: One of the most pressing issues is an aging workforce, raising concerns about knowledge transfer and succession planning. This demographic shift is compounded by a widening skills gap, particularly in emerging areas like sustainable design and Building Information Modeling (BIM).

Diversity and Inclusion Challenges: The industry also needs more diversity. Less than 38 per cent of architects in Canada are women, and 11% are visible minorities, highlighting the need for greater inclusivity in the profession. This lack of diversity limits the pool of available talent and hampers creativity and innovation, which are crucial for the industry’s growth.

Work-Life Balance and Mental Health Concerns: The demanding nature of architectural work is taking its toll on professionals. Grueling work hours directly contribute to burnout and mental health issues. This work-life imbalance is not only detrimental to individual well-being but also impacts firm productivity and talent retention.

These statistics paint a clear picture: the industry is facing a talent crunch. Not surprisingly, the 2023 Canadian Architectural Practices Benchmark Report reveals that human resources issues are expected to be among the greatest challenges for the profession in the next five years.

The HR blind spot in architecture firms

Why is HR so often an afterthought in architecture firms? In my experience, it boils down to the nature of the profession. Architecture is known to be a “passion business.” Young visionaries enter the field driven by a love for design, not business operations. While essential for producing outstanding work, the creative focus can lead to neglect of crucial business aspects, including workforce management.

The result? Many shops only seek HR expertise when they’re already in crisis mode — experiencing high turnover, struggling to recruit, or dealing with a nosedive in employee morale and productivity. At this point, addressing these issues becomes a rescue mission that is more complex, time-consuming, and costly than if the right scaffolding had been in place.

HR’s role in tackling these challenges

To truly future-proof architecture firms against evolving workplace challenges, we need to shift from reactive to proactive HR strategies. Here are key areas where HR investment can make a significant impact:

1. Enhance Performance & Productivity: A well-crafted performance management system boosts business performance and staff productivity. It supports job satisfaction and career development while directing employees toward common goals. Employees need appropriate feedback mechanisms to understand how their performance impacts the business’s success.

2. Boost and Motivate Employees: Employee engagement drives performance and retention. Companies with highly engaged employees outperform their peers by 147 per cent in earnings per share. Furthermore, engaged employees see a direct connection between their work and the firm’s success, reducing the impulse to seek opportunities elsewhere. HR can create and maintain this engagement through various initiatives and communication strategies.

3. Reward-Return Strategies: It’s a simple truth that humans repeat rewarded behaviours. This means ensuring market-aligned salaries and benefits, but it goes beyond financial compensation. Non-monetary rewards like authentic recognition, opportunities to contribute to business direction, and clear paths for advancement are equally important.

4. Maintain Compliance and Navigate Change: Professional employment legislation changes frequently. HR can keep your business compliant and implement effective change management processes to ensure employee buy-in during periods of growth or industry shifts.

5. Recruit and Develop Top Talent: New technologies like BIM, virtual reality, and artificial intelligence are key investment areas for Canadian firms. HR can support strategies for tech-savvy talent recruitment, skills development and training for existing employees to ensure long-term retention and innovation.

The business case for early HR investment

Investing in HR early allows you to develop and implement programs that improve the employee experience before problems arise. This proactive approach can prevent high turnover, employee disconnection, and lost productivity.

HR plays a key role in ensuring a positive, rewarding employee experience. And a better employee experience means a better bottom line.

This is particularly crucial for smaller firms experiencing growth. As you scale, having strong HR foundations in place will make expansion smoother and more sustainable. It allows for the development and implementation of programs that will improve the employee experience from the ground up rather than trying to retrofit solutions later.

Practical steps for growing architecture firms

1. Prioritize HR early: Don’t wait for problems to arise. Make HR a priority from the start, even if you’re a smaller firm.

2. Invest in HR expertise: Whether you hire an in-house HR professional or consult with external experts, ensure you have access to specialized knowledge.

3. Develop a comprehensive HR strategy: This should cover all aspects, from recruitment and onboarding to performance management and succession planning.

4. Foster open communication: Create channels for employees to provide feedback and voice concerns before they become significant issues.

5. Regularly review and update HR practices: The workplace is constantly evolving, so make sure your HR strategies evolve with it.

By investing in strategic HR practices, you address current workplace challenges and future-proof your firm for sustainable growth and success. While great design may attract clients, a great workplace culture attracts and retains top talent. Remember, if you build it, they will come.

The Globe and Mail Interview: Employers increasing salaries as talent shortage and inflation persist

Read the full interview in The Globe and Mail.

Employers across the country are increasing wages and projecting future salary bumps into their budgets amid inflationary pressure and a continuing talent shortage that shows little sign of easing in the near future.

Janet Candido, a long-time human resources professional who runs a consulting business in Toronto that advises employers on HR issues, told The Globe and Mail she is increasingly encountering employees who are demanding wage increases that match inflation. “I had to deal with an employee, who works in financial services, who wants an 8-per-cent salary increase, after getting a 5-per-cent salary increase last year. The employer told her, ‘Look, we can’t do that, but we can give you more time off.’ But I am fully expecting the employee to start looking for other jobs,” Ms. Candido said.

One way employers are navigating the demand for higher salaries is to offer better benefits and higher bonuses, Ms. Candido said. “I’m seeing HR professionals getting more creative with compensation packages. They are expanding health spending accounts, or improving mental-health benefits.”

7 HR Roles of the Future: What They Are and How to Land Them - Lattice

As a result of the pandemic, companies have started to change the way they operate and that includes the role of Human Resources. For instance, in the near future, we can expect to see a demand in new HR roles that cater to facilitating remote workers. The Remote Culture Manager’s role will be about building a sense of belonging and community in a virtual environment.

It’s also becoming increasingly important to ensure the workplace and internal processes are supportive of individuals' well-being and mental health. More attention will be given to mental health concerns and how their employees’ work is being affected because of it.

Janet Candido was interviewed in Lattice on the 7 HR Roles of the Future: What They Are and How to Land Them.