Pub. 1 2020-2021 Issue 1

11 We also cut all salaries, including the partners, by 20%. But we also cut our workweek from five days to four. Essentially, our staff was getting paid for the same effort; they were getting less pay. And the partners still worked five days, even with the trimmed salaries. We could at least continue marketing. I think that meant a lot. You have to take care of your people first; that’s been our approach from the beginning. Dufault: What we did, and I don’t think many firms do this: for staff that we knew were valuable and could use over the longer term, we set up rolling 90-day furloughs. We basically put certain staffers on unpaid leave. They still had benefits, including health insurance; they still accrued vacation, and they were eligible to apply for unemployment. If things turned around at any point over those 90 days, we could bring them back. At the end of the 90 days, we could decide to either extend the furlough for another 90 days or — if we didn’t think a positive change in the market was coming — release them. We went that route because it’s expensive to hire and to terminate. On average — when you take into account interviewing and onboarding costs, plus the productivity losses while they learn our systems and standards — it costs between $40,000-$50,000 to hire a person. That kind of money goes a long way, even if business is turning around, so we were very interested in directions other than termination. Wedge: Maintain a good relationship with your banker. Keep a constant level of communication, so they know you and your business well if and when you end up needing them. You want those relationships to be healthy all the time, but particularly when times are bad. And if you don’t talk to them until things get tough, they’re less likely to be helpful. You also might want to think about cutting vertically. Think about reducing a couple of principals or seeing if anyone wants to retire early or become a consultant. Someone might say, “I’d love to take six months off, or I was thinking about retiring anyway, or call me if you need me.” It’s another signal to your employees that you’re considering every scenario. What advice do you have for young professionals who may be bracing themselves for their first-ever downturn? Dufault: My advice to young people always starts with, “Make sure you’re focusing on how you deliver the greatest value.” Regardless of your role in the company, you need to be delivering value that is exceptional and recognized. That’s the best protection in a downturn. And it doesn’t mean working 80 hours a week; it means, “How are you bringing to the table what the company really needs?” For many young people, this can be hard to understand, and firm leaders are not always the most communicative when it comes to those discussions. But try to become a valuable resource that will help the company grow and prosper in good times and bad. Wedge: The more cross-trained you are, the nimbler you are. The more willing to do anything you are, the more likely you will stay employed. If you become hyper-focused on one area, or your skillset is not looked at as broad, or you aren’t perceived as willing to pitch in and help when needed, then I think you’re at greater risk in a downturn. They say, “hire for attitude, train for skill.” If you have a good attitude, I can probably train you to do anything. And you likely won’t be the first person we consider if and when layoffs become a necessity. For more practice trends and economic insights, visit the AIA business intelligence page on aia.org . b Steve Cimino is a Los Angeles-based writer and editor with a focus on architecture and design. “Maintain a good relationship with your banker. Keep a constant level of communication, so they know you and your business well if and when you end up needing them.” — Carole Wedge, FAIA “Pay attention to what you’re seeing, and trust your gut.” — Ed Shriver, FAIA

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