British businesses have retained a bullish economic outlook following the EU referendum, with nine out of ten (93%) organisations expecting business activity to either remain the same or increase this year, according to the Hays UK Salary & Recruiting Trends 2017 guide.

The research, compiled by recruiter Hays Engineering, includes a survey of over 600 engineering employers and employees in the UK conducted before June’s referendum, as well as a snap poll of over 150 engineering employees and employers conducted in September.

The guide found that while employers feel relatively reassured, this confidence is not shared by engineering employees, with more than half (55%) intending to move jobs this year. With over half (51%) of engineering professionals dissatisfied with their pay and the top reason for employees wanting to leave their current role due to salary (33%) followed by a lack of future opportunities, pressure will only increase on employers looking to hire and retain staff.

Positively, engineering employers are confident business activity will increase, with nearly three quarters (74%) planning to recruit a mix of permanent and temporary staff as they expand their workforces. 

Career progression is top of the agenda

Employees in engineering expressed concerns over career progression, as nearly half (47%) said they felt there is no opportunity for progression in their organisation. As a result, only 53% said they were positive about their career prospects this year.

For employees looking for a change, career development was the most important factor in considering a new role (27%), followed by work-life balance (21%).

Following this, employers are encouraged to improve career transparency and opportunities for progression, to prevent the risk of multiple staff departures.

Skills in demand 

As the engineering sector is focused on achieving growth and driving productivity, operations and technical acumen were cited as the top skills most needed by engineering organisations to achieve their business objectives this year. In addition, 80% of engineering employers cited a shortage of suitable applicants as their key recruitment challenge this year with a quarter saying they need access to specific skills for one off projects.

Employers are also facing competition for staff as the talent pool narrows, with over half saying they expect to face competition from other employers (52%) in addition to unrealistic salary expectations from applicants (53%).

Skills shortages are set to continue, however positively in a bid to fix gaps, nearly a third (35%) hired apprentices and close to a fifth (19%) allowed employees time off for external training, thus further investing in the skills of their workforce.

Employers to address benefits mismatch

When looking to improve employee retention and attraction, engineering employers are advised to review their benefits packages to avoid a mismatch of what employers want.

Employees cited flexible working as the most important benefit when looking for a new role at 57%, followed by 25 days annual leave (53%). However employers in the sector currently offer childcare vouchers as their top benefit (59%), followed by both above statutory pension contributions and health insurance at 56%.

With flexible working rating highly for employees, engineering firms are recommended to encourage the initiative further, as only just over a third (37%) actively encourage most staff to build flexible working into their routines.

Mike Morgan, Director at Hays Engineering, said: “We expect the skills gap to continue to be the primary issue facing the engineering sector throughout 2017 and with more people likely to move jobs, the retention of staff will become growing issue as a demand for specialist operations and technical skills grows.

“Employers will need to think long term, thinking about how they will identify, target and secure the skills they need. Unrealistic salary expectations from professionals will also become a challenge and employers will need to provide clearer career paths to attract and retain staff as they look to build their teams to enable long term growth. Employees are clearly unsatisfied with career progression in the sector, so we advise employers to make it clear for new recruits and existing employees, what steps they can take to progress further.”

For further information visit hays.co.uk/salary-guide