The UK engineering sector is facing one of the most acute skills shortages in decades, but competing for talent doesn’t have to mean driving salaries sky-high.
The UK needs an additional 173,000 engineers and technicians every year to meet demand across energy, manufacturing, and technology. At the same time, the IET 2025 Skills Survey reports that 71% of engineering employers say they struggle to find workers with the right skills.
This imbalance is creating fierce competition for qualified candidates, leading many companies to rely on inflated salary offers to secure hires. But that approach isn’t sustainable or always effective.
At Platform Recruitment, we help engineering firms attract exceptional talent through smarter hiring, not just higher pay. Here’s how employers can stay competitive in 2025’s challenging market.
Why the Skills Shortage Persists
The shortage isn’t simply about numbers; it’s about skills alignment. While engineering roles are growing in demand, the available workforce doesn’t always match the specialist requirements of modern projects.
Recent data from the IET shows that the most difficult areas to recruit for include electronics, embedded systems, and data-driven engineering. Many employers also note that applicants lack complementary soft skills such as adaptability, teamwork, and communication, essential in multidisciplinary environments.
Regionally, the demand is concentrated:
- Cambridge and Bristol remain strongholds for R&D, semiconductors, and embedded design.
- The Midlands and North West continue to expand in automotive and manufacturing technology.
- Scotland’s renewables sector is accelerating, creating niche demand for electrical and energy engineers.
In short, there’s talent out there, but not always where or how employers expect to find it.
The Problem with Chasing Salary Inflation
Offering higher salaries might seem like the simplest fix, but it often backfires.
The REC’s 2025 Labour Market Tracker notes that while engineering salaries have risen 4-6% on average, this growth hasn’t solved retention problems. Many engineers are now leaving roles within 18 months, even after receiving competitive pay, citing a lack of flexibility, development, or alignment with company culture.
Inflating salaries can also create:
- Internal pay imbalance, causing dissatisfaction among existing staff.
- Budget strain, particularly for SMEs competing with global corporations.
- Expectation inflation, where candidates view salary as the only differentiator.
Sustainable recruitment requires a broader value proposition one that emphasises why engineers should choose your organisation beyond pay.
What Engineers Actually Want in 2025
It's been shown that 57% of UK professionals now prioritise work–life balance over salary when considering new roles. Among engineers, flexibility, purpose, and career growth have overtaken pay as key motivators.
According to LinkedIn’s 2025 Global Talent Trends report:
- 74% of engineers say they would stay longer with an employer who invests in training and professional development.
- 63% cite flexible or hybrid working as a deciding factor in job choice.
- 59% want clear progression pathways and transparent communication from leadership.
This shift represents an opportunity for employers willing to think differently about attraction and retention.
How Employers Can Compete Without Paying More
Here are five strategies that leading engineering firms are using to secure top talent without breaking salary structures:
1. Invest in Learning and Development
Upskilling drives loyalty. Engineers are drawn to companies that support growth through certifications, mentorship, and exposure to new technologies. Provide clear learning pathways and highlight them during recruitment.
2. Build a Strong Employer Brand
According to LinkedIn, 75% of job seekers research a company’s reputation before applying. Promote your values, culture, and employee stories authentically across channels not just job ads.
3. Offer Flexibility That Works
Hybrid and condensed schedules are now standard expectations. The IET found that employers offering flexible arrangements attract 35% more applications for technical roles than those requiring full-time onsite work.
4. Hire for Potential, Not Perfection
Skill-based hiring is expanding talent pools. Many employers are removing rigid degree requirements and focusing on practical capability and learning agility a strategy that often leads to faster, more diverse hiring.
5. Partner with Specialist Recruiters
Working with niche recruitment partners like Platform Recruitment helps identify candidates who align with your culture and long-term goals. Our consultants bridge the gap between technical expertise and soft-skill fit, reducing risk and improving retention.
Case Example: Competing Smarter in a Competitive Market
A precision manufacturing firm in the Midlands was struggling to attract embedded engineers despite raising salaries twice in a year. After refocusing their strategy on flexibility, training, and culture, applications increased by 53% without another pay rise.
Within six months, they filled every open role and retained 100% of new hires. Their secret wasn’t higher salaries; it was understanding what engineers truly value.
The Bigger Picture
EngineeringUK forecasts that green technology, robotics, and advanced manufacturing will create tens of thousands of new roles over the next five years. Yet, unless companies evolve how they attract and retain people, those opportunities will remain unfilled.
The employers who win in 2025 are those who compete on purpose, opportunity, and growth not just pay.
Compete on More Than Salary
The UK’s engineering skills shortage isn’t going away overnight. But it’s not unsolvable.
By focusing on flexibility, culture, and development, employers can attract talent that stays while building a more resilient, future-ready workforce.
At Platform Recruitment, we help companies navigate hiring challenges across electronics, embedded systems, software, and life sciences. Our focus is simple: connecting you with the right engineers, not just the most available ones.
Explore how we can help you hire smarter:
Sources (2024–2025)
- EngineeringUK: Engineering in 2025 – Key Workforce Insights
- Institution of Engineering and Technology (IET) Skills Survey 2025
- Recruitment & Employment Confederation (REC) Labour Market Tracker 2025
- CIPD Labour Market Outlook 2025
- LinkedIn Global Talent Trends 2025
- Office for National Statistics (ONS) Labour Market Data Q3 2025
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