The engineering sector has experienced a period of intense volatility over the last few years. We have seen a candidate-driven market where skills shortages led to aggressive bidding wars, significant salary jumps, and a surge in counter-offers. For a time, it seemed the only way for salaries to go was up.
However, the tide is turning. We are now seeing a shift where engineers looking to move roles are discovering a stark reality. The salary they are currently on, often inflated by retention tactics, may not match what the open market is willing to pay. This leaves many professionals facing a difficult choice. Do they stay in a role they want to leave, or do they accept a financial step backward to move forward?
This is not necessarily a case of skills being undervalued. It is a market correction. To navigate this new landscape, we must understand the factors driving these changes and what they mean for the future of the engineering job market.
Have Counter Offers Artificially Inflated Engineer Salaries?
To understand the current state of engineer salaries, we have to look at how we got here. During peak skills shortages, employers were desperate to retain knowledge within their businesses. Recruitment was difficult and expensive, so when a key engineer resigned, the immediate reaction was often a substantial counter-offer.
While this solved a short-term problem for the employer, it created a long-term distortion in the recruitment market. We saw salaries jump by 10%, 15%, or even 20% overnight, not because the role’s value had changed, but because the cost of replacement was perceived as higher.
This has led to a situation where many engineers are sitting on salaries that sit significantly above the external market average. They have been paid a premium to stay put. The issue arises when these individuals eventually decide to re-enter the job market. They often find that the "market rate" for their role is lower than their current package. The counter-offers of the past have effectively created a salary bubble that new employers are unwilling, or unable, to match.
What Is the Current Market Rate for Engineers in the UK?
Determining a definitive market rate for an engineer salary in the UK is complex because the landscape has fractured. We are seeing stabilisation in some areas and continued growth in others. For instance, niche disciplines within renewables or advanced automation may still command a premium due to scarcity. However, in more generalist manufacturing or design roles, salary bands are tightening.
The advertised salaries you see on job boards do not always tell the full story. A company may list a wide bracket to attract talent, but the actual offers being made are often at the conservative end of that scale. Employers are under pressure to manage overheads. They are scrutinising hiring budgets more closely than they were two years ago.
This disconnect between expectation and reality is causing friction. An engineer earning £55,000 due to a counter-offer might see engineering jobs in the UK advertised at £50,000. This is not the market underpaying; it is the market reflecting the sustainable value of the role. We are moving away from "panic pay" and back towards structured salary banding based on commercial viability.
Why Are Engineers Being Asked to Take Pay Cuts When Changing Jobs?
It can be a bitter pill to swallow, but taking a pay cut when moving engineering jobs is becoming increasingly common. This is rarely a reflection of the candidate's ability. It is a reflection of risk management by employers.
When an engineer is priced at the very top of, or above, the standard bracket, they represent a significant investment. For a new employer to match an inflated salary, they need to be certain that the return on investment will be immediate and substantial. If the numbers do not stack up, they will simply look for a candidate whose expectations align with their budget.
Furthermore, internal equity is a major factor. Employers cannot bring a new hire in on a salary that dwarfs the earnings of their existing, loyal team members without risking unrest. Therefore, we are seeing more engineers accept sideways moves or slight reductions in base salary to secure roles that offer better long-term stability, culture, or technical challenges. The focus is shifting from "highest bidder" to "best fit".
How Can Being ‘Overpaid’ Limit Career Progression for Engineers?
There is a hidden danger in being paid above market rate. It can act as a set of golden handcuffs that severely limits engineering career progression.
If your salary is 20% higher than the market average for your experience level, your options for movement are drastically reduced. You may find yourself unhappy in your current role, perhaps due to a lack of development opportunities or poor management, but unable to leave because you cannot afford the pay cut required to join a new firm.
This leads to skills stagnation. An engineer who stays in a role solely for the salary may miss out on working with newer technologies or methodologies adopted by other firms. Over time, this erosion of competitive skills creates a vicious cycle. You become less employable relative to your salary expectation. Eventually, this can threaten job security, as highly paid staff are often the most vulnerable during restructuring if their output does not justify the expense.
What Should Engineers Consider Before Making Their Next Career Move?
If you are considering an engineering job search in the current climate, it is vital to proceed with a clear understanding of your position. The first step is to look beyond the base salary. Engineering career advice often focuses on the paycheck, but true career value is broader.
Consider the scope of the role. Will you gain exposure to new software, leadership training, or projects that enhance your CV? A role that pays slightly less but increases your marketability for the future is often a smarter strategic move than a stagnant role that pays a premium.
Before resigning, engage in honest benchmarking. Do not rely on what your colleague earns or what a recruiter promised you six months ago. Look at real-time data for engineering recruitment in the UK. Understand where you sit in the hierarchy of skills versus compensation.
Finally, manage your expectations regarding negotiation. The days of demanding a 15% uplift on every move are fading. Be prepared to discuss the total package, including bonuses, pension contributions, and flexible working, rather than focusing solely on the monthly figure. The smartest move is the one that is sustainable and keeps your career trajectory moving upward, even if your salary temporarily plateaus.
Securing Your Future in a Changing Market
The engineering market is not crashing, but it is correcting. The rapid inflation of salaries driven by counter-offers and scarcity is settling into a more sustainable rhythm. For engineers, this means that career moves require more strategic thought and less reliance on automatic salary hikes.
ACR works with engineers and employers across the UK to provide real-time market insight, honest salary benchmarking, and practical advice. Whether you are planning a move, restructuring a role, or navigating counter-offers with confidence, we can help you understand the reality of the market.
Get in touch with ACR to discuss your options and understand where you really sit in today’s engineering job market.