Michael Page: Manufacturers Struggle to Match Salary Hopes
Leading UK recruitment agency Michael Page, part of the PageGroup listed on the FTSE 250, has published its 2025 Salary Guides, revealing key pressures facing employers in the UK hiring market.
The report identifies salary expectations, skills shortages and retention issues as the biggest hurdles affecting recruitment, especially in sectors like engineering and manufacturing.
PageGroup's hiring insights
Founded in 1976, PageGroup has grown into a globally respected recruitment consultancy, operating in 37 countries. It provides recruitment services on local, regional and global scales, with key brands such as Page Executive, Michael Page, Page Personnel and Page Outsourcing.
The company’s Salary Guides present crucial insights into hiring trends across the UK job market, serving as a resource to help businesses build informed recruitment strategies for the year ahead.
The 2025 Salary Guides reveal that the engineering and manufacturing (E&M) sectors have faced acute hiring challenges.
According to the report, 75% of UK E&M businesses struggled to fill roles in the past year. More than half (54%) of those organisations say aligning with candidate salary expectations has been their top challenge.
The report also highlights the most in-demand roles within E&M:
- Engineering Project Manager (avg. salary £65,000)
- Maintenance Engineer (avg. salary £35-40,000)
- Health and Safety Manager (avg. salary £65,000)
- Production Engineer (avg. salary £36-40,000)
- Manufacturing/Production Supervisor (avg. salary £30,000)
Ruth Hancock, Regional Director at Michael Page, explains that “economic challenges have had an impact on recruitment throughout the engineering and manufacturing sector", adding that businesses without a well-thought-out recruitment approach or competitive employer value proposition may find it difficult to attract and retain top talent.
However, Ruth also sees potential for recovery, noting that “planned government investment into infrastructure projects” could bring a much-needed boost to the industry, promoting job growth and enhancing market confidence.
With compensation continuing to be a core issue for both employers and candidates, Ruth highlights the importance of prompt hiring decisions.
“Throughout the year we’ve seen a clear trend emerge: hiring managers who make offers sooner are securing the best candidates,” she says.
“With this in mind, and as the talent pipeline becomes more dynamic, leaders should seize this opportunity to ensure their candidate offerings are competitive and timely, in order to secure their preferred candidates in the future.”
Salary expectations and skills gaps
Beyond aligning on salaries, finding candidates with the right skills remains a top challenge for 73% of business leaders in the E&M sector.
Additionally, around two-thirds (65%) of these leaders report a lack of available candidates, reflecting the increasingly competitive nature of specialised recruitment. This has driven a need for E&M businesses to consider alternative recruitment strategies, as companies are increasingly looking for ways to expand their candidate pool and attract skilled talent.
“There are plenty of options available to businesses to ensure they’re not falling foul of mismatched expectations,” Ruth adds.
- Employers look beyond base salaries to develop attractive total packages, which may include benefits such as enhanced career progression, work/life balance and skills development opportunities.
- Benchmarking salaries against industry standards and clearly articulating what differentiates them as an employer.
- Ensure you have a well-structured recruitment strategy, along with an attractive value proposition, so you can compete for a limited pool of talent.
"We’re starting to see clients look at the “will” candidates offer compared to choosing solely based on their “skill” and getting better results as they’re able to nurture and grow that individual."
"This open-mindedness has also extended to candidate experience; rather than recruiting a candidate who solely has a manufacturing background, we’re seeing an increased number of clients explore other experienced candidates from procurement and supply chain where they hold a similar skillset."
Retention and long-term strategy
Alongside recruitment pressures, retaining staff has become increasingly difficult in the E&M sector, with 60% of organisations reporting retention issues.
For 58% of UK leaders, offering a competitive salary package remains the primary retention challenge, but it is not the only factor at play.
The report indicates that 42% of E&M companies also cite work-life balance as an important retention issue, while 21% of respondents point to limited career progression opportunities as a reason employees may choose to leave.
These findings highlight the need for a more strategic approach to building a stable workforce. Companies are encouraged to shift from treating recruitment as a short-term fix to creating a sustainable, long-term talent pipeline.
This includes collaborating with recruitment partners to reach a wider range of candidates, using specialised knowledge to target the right skills and prioritising initiatives that support employee growth and work-life balance.
The report suggests that businesses looking to futureproof their teams will need to embrace these strategies, as the market becomes more competitive and talent remains in short supply.
By focusing on aligning salary expectations, addressing skills gaps and building a sustainable recruitment framework, UK businesses can ensure they’re prepared to meet the evolving demands of the hiring landscape.
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