HR Spending At 5-Year-Low For Architecture, Engineering, Planning & Environmental Firms

A report out from consultants ZweigWhite, shows a decline in operating expenses for Architecture Engineering, Planning & Environmental Firms.

The survey shows that, in 2010, the median total human resources spending as a percentage of net service revenue dropped down to .9% this year. That number marks a five year low.

Christine Brack, PMP, Principal, ZweigWhite Strategic Advisory Services, said, “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.”

In 2007, the percentage rested at a high of 1.3%, dropping to 1%, in 2008 and 2009.

Brack demonstrated the impact of reducing spending, saying, “Cutting costs will have an impact on the recipients. The marketing associate who can’t develop a new postcard, the emplyees who have to contribute more to their health plan, and the designers who cannot work with the newest software.”