PSMJ Resources, Inc.’s just-released 2025 AE Management & Staff Compensation Model gives us an inside look at the latest data on compensation trends in our industry. With data collected in January and February 2025, this is the freshest AE compensation benchmarking data currently available. So, what are we seeing? What are some new and noteworthy findings?
Pop quiz: What's the top-paying entry-level technical discipline for AEC firms in 2025?
If you guessed Electrical Engineers, you're spot on. And if your firm isn't keeping pace with the $73,751 median salary they're commanding this year, you might be watching your best talent walk out the door to competitors who are.
The Great Electrical Engineering Salary Surge
The latest PSMJ AEC Benchmark Survey data reveals a striking trend: Electrical Engineers aren't just leading the pack—they're pulling away from it. With a robust 3.35% salary increase from 2024 to 2025, entry-level EEs now earn a commanding 23% more than their architectural counterparts, up from a 19% gap just last year.
Here's how the entry-level landscape has shifted:
The Winners:
Electrical Engineers: $73,751 (↑3.35%)
Environmental Engineers: $73,300 (↑3.65%)
Civil Engineers: $70,150 (↑1.93%)
Structural Engineers: $72,000 (↑1.81%)
Architects: $60,000 (↑0.61%)
The Surprise Decline:
Mechanical Engineers: $71,110 (↓2.18%)
Why Electrical Engineers Command Such a Premium
The widening salary gap isn't happening in a vacuum. AEC firms are facing unprecedented competition from both within the industry and from tech companies, data centers, and renewable energy firms all vying for the same electrical engineering talent.
The numbers tell the story: while most technical disciplines saw modest gains, Environmental Engineers (3.65%) and Electrical Engineers (3.35%) are experiencing the most significant increases, reflecting the industry's growing focus on sustainable design and smart building technologies.
Beyond Entry Level: The Leadership Premium
The salary story doesn't end with entry-level positions. Project Managers continue to be in high demand, commanding a median base salary of $111,318 in 2025—a solid 3.2% increase from the previous year. While their performance bonuses remained relatively flat at $8,000 (down just $221), these roles remain critical to firm success.
Perhaps most telling is the emergence of Chief Innovation Officers as strategic priorities. These positions now command median base salaries just 9% below CEOs—approximately $200,000 compared to $220,000—signaling that larger AEC firms are making serious investments in technology leadership.
What This Means for Your Firm
These aren't just numbers on a spreadsheet; they're a roadmap for talent retention and acquisition strategy. If your compensation packages aren't aligned with these benchmarks, you're likely facing:
•Higher turnover rates among your most valuable technical staff
•Difficulty attracting top-tier talent from competitors
•Increased recruitment costs and project delays
•Potential gaps in critical technical capabilities
The Path Forward
Smart AEC leaders are already adjusting their compensation strategies based on reliable benchmark data. The firms that thrive will be those that:
1. Regularly benchmark against current market data rather than relying on outdated information
2. Recognize the premium value of in-demand specialties like electrical and environmental engineering
3. Invest in innovation leadership through dedicated CIO roles
4. Balance base salaries with performance incentives to retain top project managers
Don't Let Outdated Data Cost You Talent
The AEC industry is more competitive than ever, and compensation decisions based on outdated or weak data can be detrimental to talent retention. The firms that win will be those armed with comprehensive, peer-validated benchmark data that allows them to make informed decisions about compensation, benefits, and retention strategies.
Remember: in today's market, losing a top electrical engineer to a competitor isn't just about replacing one person—it's about the project delays, knowledge gaps, and client relationships that walk out the door with them. The question isn't whether you can afford to pay market rates; it's whether you can afford not to.
The data in this analysis comes from PSMJ's 2025 A/E Compensation Benchmarking Suite, based on responses from 500+ AEC firms and representing 50 years of trusted industry benchmarking.
To learn more and download your copy of the 2025 AE Management & Staff Compensation Benchmark Model, visit www.psmj.com/surveys. This Excel-based model allows you to easily sort data by firm size and other peer groups as well as adjust for inflation and location (using built-in location adjustment data from the U.S. Bureau of Labor Statistics).