The Loyalty Shift: Understanding Employee Tenure Decline in AEC Firms

In the architecture, engineering, and construction (AEC) industry, workforce stability has traditionally been a stronghold of success. Long tenures foster deep expertise, continuity, and a strong company culture. However, a significant shift has taken place over the last decade—employee loyalty is waning, and tenure rates are steadily declining. A decade ago, employees in architecture and engineering firms averaged seven years with a company. Today, that number has dropped to 4.9 years. In construction, tenure hovers around four years, reinforcing the trend of shorter employment cycles.

This shift is largely driven by the generational transition in the workforce. Millennials and Gen Z—workers aged 44 and younger—now constitute the majority of employees in AEC firms. Unlike prior generations, these professionals are more inclined to switch jobs frequently in pursuit of better opportunities, higher salaries, career growth, and improved work-life balance. This trend raises important questions: Why are employees less loyal than before, and what can AEC firms do to retain top talent?

The Changing Nature of Loyalty in AEC Firms

Historically, long-term employment was the norm in AEC firms. Employees expected to stay with one employer for the bulk of their careers, advancing through the ranks while building institutional knowledge. Employers, in turn, invested in their workforce with generous benefits, professional development, and a clear path for growth.

However, a combination of economic shifts, industry disruptions, and generational attitudes toward work has changed the equation. Today’s workforce sees job-hopping not as a sign of instability but as a strategy for advancement. Several key factors have contributed to this decline in loyalty:

1. The Rise of a Gig Economy Mindset

The AEC industry has traditionally relied on long-term employment structures, but younger workers increasingly view their careers through the lens of the gig economy. They prioritize skill-building, diverse experiences, and flexibility over tenure. Many professionals, particularly in construction, move between firms or take on freelance and contract roles rather than committing to a single employer.

2. Career Advancement Through Job Changes

Unlike previous generations who stayed at firms to climb the corporate ladder, younger employees often find that the fastest way to advance their careers and increase their salaries is by changing jobs. The stagnation of internal promotions and wage growth within firms has led many professionals to seek external opportunities rather than waiting for upward mobility in-house.

3. Work-Life Balance and Cultural Shifts

Millennials and Gen Z workers prioritize work-life balance, company culture, and flexibility more than their predecessors. If an AEC firm does not offer remote work options, flexible schedules, or strong workplace culture, employees may seek out competitors who do. The COVID-19 pandemic accelerated this expectation, making it a critical factor in retention.

4. Competitive Talent Market and Skill Gaps

The AEC industry is facing a well-documented labor shortage, particularly in construction and engineering roles. Skilled professionals have more leverage than ever, and firms are actively recruiting top talent with enticing offers. The competition for skilled workers means employees have little incentive to remain loyal if better opportunities arise elsewhere.

How AEC Firms Can Adapt and Retain Talent

While declining tenure is a reality, AEC firms can take proactive steps to foster loyalty and improve retention rates:

• Invest in Career Development: Provide clear pathways for advancement, mentorship programs, and upskilling opportunities to help employees see long-term value in staying.

• Offer Competitive Compensation and Benefits: Retaining talent means keeping pace with market salaries, bonuses, and benefits that address modern workforce expectations.

• Enhance Workplace Culture and Flexibility: Firms that offer hybrid work models, flexible scheduling, and a positive company culture are more likely to retain employees.

• Recognize and Reward Contributions: Employees who feel valued and appreciated are more likely to stay. Implement recognition programs and foster a culture of appreciation.

• Embrace Technology and Innovation: Younger workers are drawn to firms that adopt modern tools and workflows. Investing in digital transformation can help attract and retain top talent.

Conclusion

The decline in employee tenure in AEC firms reflects broader workforce trends and generational shifts. While loyalty may no longer mean decades-long careers at a single firm, companies can still build strong, committed teams by adapting to changing workforce expectations. Those that prioritize career growth, flexibility, and competitive compensation will not only retain top talent but also create an environment where employees want to stay and thrive.

By understanding and responding to these trends, AEC firms can transform the challenge of declining loyalty into an opportunity to build a more dynamic, engaged, and future-ready workforce.