Engineering employers continue to face significant workforce challenges despite steady salary growth, with skills shortages and limited career progression driving ongoing talent movement, according to the FY26-27 Hays Salary Guide.
The report found engineering salaries increased by an average of 3.8 per cent over the past year, although 42 per cent of professionals reported receiving little or no pay rise.
Demand for engineering talent remains strong across infrastructure, energy and industrial sectors, with more than 80 per cent of organisations reporting skills shortages.
Hays Business Director, Clare Weston, said engineering capability continues to be under pressure.
“Engineering roles sit at the heart of infrastructure, energy and transformation projects, so capability constraints are felt quickly and broadly,” Weston said.
“While demand for engineers remains strong, organisations are competing for a limited pool of talent, and that pressure is being amplified by evolving expectations around career development and flexibility.”
The report found 36 per cent of engineering professionals are actively seeking a new role, while a further 34 per cent are open to new opportunities.
Salary remains the biggest driver of job changes, cited by 31 per cent of respondents, closely followed by career progression at 29 per cent.
“Engineers are not just looking at pay, they are evaluating the quality of experience,” Weston said.
“Access to complex projects and clear progression pathways are key to retaining talent.”
Flexible working also continues to influence recruitment and retention, with 70 per cent of employees considering it an important factor when evaluating new roles and 66 per cent of employers now offering flexible work arrangements.
The report identified civil, electrical, mechanical, project and design engineers as the most in-demand roles across Australia and New Zealand.
