My name is Molly C. Stewart, and I am a firm administrator with a Virginia-based MEP firm. I have been with my firm for 20 years, working my way through various areas of the firm’s administration. I now serve as a firm principal and CFO. While finance is my primary focus, I continue to be involved in many aspects of the firm. I lead a small team that helps me manage and support human resources, marketing, firm administration, contracts, and project management.

This year, I had the opportunity to participate in the SDA’s EDSymposium in Colorado Springs. I was eager for this experience because most of my continuing education is done virtually, and there is something unique about in-person learning—the engagement and camaraderie. And let me tell you, the content of this event was amazing. It covered a wide array of operational support topics.

For example, we heard from Gregory Hart with PSMJ about the AEC market and current trends. It was reassuring to hear that wage inflation is easing off. While 6% increases in our industry were great, maintaining such increases year after year would have been challenging. It was also insightful to learn which markets are thriving and which ones are cooling down. This information helps companies like mine refocus their marketing efforts to diversify their workload. Gregory also touched on AI in our industry. Although we've seen AI starting to make an impact, the question remains: are we embracing it yet? Our firm should probably invest more energy to stay ahead of the competition as AI becomes more integral to our industry.

We also heard from Frank Musica with Victor Insurance. Frank discussed employment practice concerns in the workplace, highlighting issues that hadn't fully made it onto my radar yet. Who would have thought about dementia in the workplace? Even though this may be a current concern for many firms, I hadn't considered the impact of the aging population in relation to my firm and the impacts to quality and safety. One key takeaway from Frank was that “being consistent is the best risk management advice.” This piece of advice reminded me that my firm needs to review our company manual to ensure we cover workforce changes, such as our aging employees.

Finally, I want to note one additional benefit from this great experience that has nothing to do with the speakers but everything to do with personal growth. I am very much an introvert. While I may seem like a social butterfly to those who know me well, I am a wallflower at big events and usually accompany other more seasoned professionals to networking events. Attending this symposium was a big step for me, requiring personal pep talks and motivational notes! Participating in this event allowed me to step outside my comfort zone and grow both professionally and personally. I am thrilled to say that I ventured beyond my little world and now feel stronger and better prepared to support my company.

Hear Molly talk about her EDS24 experience in her own words. Click Here to Listen. 

Molly Stewart is the Vice President/Treasurer of the Administrative Department

with Vansant & Gusler, Inc. in Norfolk, VA.

She was one of the PPC Grant First Time Attendee Recipients for EDS24.

April 24 was National Administrative Professionals Day. And this year, we’re taking a different approach. At SDA, we’re celebrating how business professionals in the A|E industry with roles in marketing, finance, human resources, project management, and operations keep the firm in business. Instead of spotlighting individual achievements, we’re diving into the collective essence of our firms, celebrating the interconnectedness of diverse business functions that underpin design endeavors. Much like the celebrated Architecture and Engineering Weeks, let’s delve deeper all week into the intricate business ecosystem of our firms. Today's focus is Human Resources.

In the fiercely competitive landscape of the Architecture, Engineering, and Construction (A|E|C) industry, the battle for talent rages on. As firms strive to attract and retain top-tier professionals, the role of human resources (HR) professionals becomes increasingly pivotal in shaping organizational success.

At the heart of HR’s mission is creating a dynamic and engaging workplace culture that sets firms apart as desirable destinations for experienced and talented professionals seeking growth and fulfillment. From designing effective onboarding systems to implementing robust career development programs, HR professionals play a central role in nurturing employee engagement and professional advancement.

Crafting compelling job descriptions is just the tip of the iceberg. HR teams leverage their expertise to attract candidates with the right skills and cultural fit, ensuring that each hire contributes to the firm’s overall success. Through innovative recruitment strategies and competitive compensation packages, HR professionals create an enticing value proposition that resonates with top talent.

But HR’s impact extends far beyond the recruitment process. By understanding the latest HR benefits available to the firm to save money and retain talent, HR managers leverage the firms’ benefit dollars to their maximum effect. 

Case in Point:  Cutting-edge HR conference speakers bring our members the latest 401(k) plans, health plans, and compensation trends. Many A|E|C HR managers learned about HDHP health insurance programs and HSA spending accounts early, saving their firms considerable payroll taxes by structuring health insurance premiums as pre-FICA tax deductions.

At SDA, we understand the vital importance of HR in driving talent acquisition and professional growth. That’s why we’ve established initiatives within our SDA network, including our virtual First Friday Coffee Connections and many Focus Area Forums. These platforms are invaluable member resources for sharing knowledge, exchanging best practices, and fostering collaboration within the A|E|C community.

Case in Point: Spreading the word about pursuing the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) made a real monetary difference to the bottom line while weathering COVID for many firms.

HR professionals can be the unsung heroes of the A|E|C industry, establishing best practices to drive talent acquisition and retention while favoring the firm’s bottom line. Through their expertise, dedication, and innovative initiatives, they create the foundation for organizational success and foster a culture of excellence that propels firms to new heights of achievement.

SDA Webinars:

Super Staff: Finding & Retaining Best Talent – Lloyd Princeton – Design Management Company

How an EE Resource Group Helped Connect and Grow Our Culture - Rebecca Smith, P.E.

Join us at our next First Friday Coffee – Register Here

April 24 is National Administrative Professionals Day. And this year, we’re taking a different approach. At SDA, we’re celebrating how business professionals in the A|E industry with roles in marketing, finance, human resources, project management, and operations keep the firm in business. Instead of spotlighting individual achievements, we’re diving into the collective essence of our firms, celebrating the interconnectedness of diverse business functions that underpin design endeavors. Much like the celebrated Architecture and Engineering Weeks, let’s delve deeper all week into the intricate business ecosystem of our firms. Today's focus is Finance.

Financial management is pivotal in driving success and sustainability in the complex world of architectural and engineering firms. From navigating tax regulations to optimizing project profitability, finance professionals are responsible for fiscal health and strategic decision-making.

One often overlooked aspect of financial management is understanding and mitigating tax liabilities. In Virginia, firms are subject to a Gross Receipts Tax, which can significantly impact the bottom line.

Case in Point: Take, for instance, the scenario of a joint venture operating in Virginia. Not only does the JV incur Gross Receipts Tax, but each partner is also subject to additional taxation at the individual level. A double whammy can eat into profits and erode financial viability. However, astute financial analysis and strategic planning can uncover opportunities for optimization and savings. Consider the case of a recent joint venture where a firm’s controller identified a significant tax-saving opportunity. By strategically headquartering the JV in Colorado instead of Virginia, the venture saved $13,000 annually and $65,000 over the contract’s life. This simple yet strategic decision increased the JV’s profit dollar for dollar to the bottom line.

But tax optimization is just one piece of the puzzle. Equally important is understanding project profitability by client—a metric that can reveal hidden inefficiencies and identify lucrative opportunities. By analyzing profitability metrics, firms can weed out underperforming projects, allocate resources more efficiently, and prioritize clients with the highest returns.

At SDA, we’re committed to empowering our members with the knowledge and insights needed to navigate the intricate terrain of financial management. It’s one reason why we partner with industry leaders such as PSMJ, Profit by Design, and Morrissey Goodale during our conferences. Through these partnerships, we provide our members access to up-to-date financial analysis, industry trends, and best practices—like Deltek & A|E Clarity’s financial survey and McGraw-Hill industry trends—equipping them with the tools and strategies needed to thrive in a competitive marketplace.

Case in Point: After a member attended an SDA conference session by Mony Financial Services on deferred compensation plans using whole life insurance, she brought the idea back to her firm, the firm established and funded the plan, and it continues to be a successful part of the firm’s succession planning.

Finance is the lifeblood of A|E firms, driving strategic decision-making and ensuring long-term sustainability. By embracing financial acumen and leveraging our various member resources, firms can unlock new opportunities, optimize profitability, and chart a course toward continued success in the industry’s ever-evolving landscape.

Look for SDA’s new Certificate in Design Firm Financial Management (CDFO-FM) accreditation coming soon. CPAs and CMAs designations are helpful, but an accreditation specific to A|E|C finances will be a game changer.

Webinar Suggestions:

Benchmark Your Firm Performance for Growth – Deborah Gill

RAISE Your Value and Charge What You’re Worth– June Jewell

How to Achieve a Sustainable, Profitable Business - Mark Goodale