by LaTonya Whitfield-Horhn, AIA, LEED-AP
and Mario W. Ewell, MBA

Summary: Human capital may be defined in many ways, and one of the challenges is coming to an agreed-upon definition that is tailored to the profession of architecture. For the purpose of this article, we define human capital as the set of skills that an employee acquires on the job through training and experience and that increases that employee's value in the marketplace.

Soft vs. technical skills
A soft skill versus technical skill debate has been around for many years. Of the two, which is more important? As architects, we need to discuss further which characteristics or skills we think are the most important for success in our profession. Managers in varying professions believe technical and analytical skills are among the top, but these fall behind communication and leadership skills, which many consider to hold the one and two spots, respectively. Interpersonal skill, another soft skill completes the top five.

Many firm principals and project managers feel that a technical understanding is necessary but also know that the technical aspects of architecture can be learned through excellent instruction, practice, and enthusiasm for the architecture profession. That being said, communication, leadership, and interpersonal skills are critical success factors for successful architects. These skills, among other soft skills, may actually be harder to learn than the technical skills.

Communication, leadership, and interpersonal skills are critical success factors for successful architects

Have architecture firms computed employee value as it pertains to emerging professionals? We hope firms value their employees; without them firms would cease to exist. Are employees encouraged to come up with ideas, reorganize procedures, and troubleshoot problems? Praise and encouragement can go a long way with employees. No matter how old we get, or how accomplished, people respond to praise and encouragement. It feeds our self-esteem and ego, pushes us to achieve more, and try harder. Many managers get preoccupied with tasks and results, and they ignore the employee’s internal fundamental motivators. We recognize that not all firms are in a position to give financial rewards every time we do something good, and we really do not think employees expect that. Whether you are a manager or a co-worker, recognizing the efforts of others will not only be motivating to those around you, it will elevate you to a position of leadership.

Building employee equity
Employers can demonstrate the value of their employees by remembering that delegating work is not the same as assigning work. When you delegate work, you are sharing your work. When you assign work, you are not sharing your work but simply handing out tasks that employees are already responsible for completing. The overall goal of delegating work is to free you up for other endeavors and teach job skills to your employees. Much emphasis is placed on employees taking the initiative and accepting greater responsibility in architecture firms. So much so, that many firms have abandoned job descriptions completely. Nonetheless, having clearly defined roles and responsibilities at the onset of projects is especially important to young architects, particularly for individuals who are expected to take on additional project responsibilities.

Having clearly defined roles and responsibilities at the onset of projects is especially important to young architects, particularly for individuals who are expected to take on additional project responsibilities

Firms and their employees benefit when the firm is committed to building employee equity. Firms should develop strategies to ensure that the company is on the right track for growing company value through employee equity. Put employees first and establish ways to make use of your company's existing workforce, so that you do not leave employee equity on the table, unrecognized, unrewarded, and unused. Encourage lifelong learning by maintaining and regularly upgrading employee value through educational activities. Keep and continue to grow equity by making certain that employees receive a consistent message about what the company considers important by aligning performance goals and compensation with employees' equity. Encourage licensure and participation in professional organizations. Firms also benefit by providing funding for interns and young architects to attend professional conventions and meetings.

The importance of branding
Branding is as important to a firm as sunlight is to a flower. Architecture professionals need to embrace branding as a core component of human capital and financial success. Branding is one of the most important aspects of any business, large or small, retail or B2B (electronic commerce conducted business-to-business.) An effective brand strategy gives you a major edge in increasingly competitive markets.

Your brand is your promise to your customer

Many architects ask: “What exactly does ‘branding’ mean and how does it affect our business?” Your brand is your promise to your customer. It tells them what they can expect from your products and services, and it differentiates your offering from your competitors'. Your brand is derived from who you are, who you want to be, and who people perceive you to be. In short, the best and the brightest young architects want to work for the best architect firms. Branding is equally important to the firm as well as to young architects. To ignore this factor is to deprive a flower of sunlight … death is sure to come.

Developing a value proposition
The key for architect firms wanting to build higher levels of engagement is to develop an employee value proposition that links directly to their business strategy and desired business outcomes. This process is best understood by observing what kinds of outcomes are being targeted, designing a value proposition that describes the culture that would support these outcomes, and identifying the drivers that would motivate people to create this culture and deliver the desired outcomes. Firms should also provide material on their work in vision, values, brand development, and employee culture surveys. Analysis of these data will identify key attributes, desired behaviors, and engagement drivers to be focused on and developed.

The key is to develop an employee value proposition that links directly to the firm’s business strategy and desired business outcomes

The data obtained through these processes will allow firm owners to pinpoint the productivity and organizational outcomes they most want to achieve, and to develop the value proposition to support them. They will also be able to identify the success factors most likely to lead to the culture and outcomes they are seeking as well as prioritize the engagement drivers that most impact these factors.

The leaders of the future
Young architects are poised to be the firm leaders of the future. We depend on our firms to provide a solid bridge over the gap between architecture school and professional practice. When our immediate supervisors, principals, and firm owners take the time to mentor us and show us the ropes, we are better prepared to lead when we take the reins.

The history of our profession is based on apprenticeship. Technical detailing and mastering the latest drafting software are important. However, being mentored in the areas of client relations, contracts, negotiations, presentation skills, marketing, and public relations is equally if not more important to young architects. Recognizing that drawings are a big part of being an architect, those of us who invest the time and energy in becoming licensed ultimately do not want to be chained to the digital drafting board.

We depend on our firms to provide a solid bridge over the gap between architecture school and professional practice

Taken from the YAF 15 Summit Outcomes, human capital was ranked as number 2 of the top 10 most pressing concerns of young architects. We believe there is a tangible benefit to firms and the profession in recognizing and nurturing the talents and strengths of young architects. The more valued and engaged young professionals are, the more they will remain in the profession and pursue licensure. The more the profession recognizes and nurtures young professionals, the more diverse the profession will become.

Happy employees make for more companies that are profitable. Improvements in human capital practices, including both compensation and traditional human resources concerns such as employee recruiting and retention, can boost a company's financial performance. It is of great importance to understand the significance of bringing the power of human and financial capital together to transform communities into vibrant, desirable places for people to live, work, and raise families and recognize that the same holds true for the architecture profession.