The engineering sector is facing a major talent gap, driven by an aging workforce, rapid tech advancements and global competition. A third of engineering jobs go unfilled in the United States every year, leaving smaller firms vulnerable to larger employers that can attract and retain top talent with ease.1
Engineering’s challenges are certainly widespread. Across many industries, nearly 80% of human resources professionals cite labor shortages as a top concern, with 30% saying they’re effective at recruiting but struggle with retention.2
Experts at The Hartford share how small and midsize companies can leverage employee benefits as a powerful tool in the engineering talent war.
1. Design Benefits Packages To Attract Today’s Specialized Engineering Talent
The demand for engineering talent has skyrocketed as organizations build necessary strengths in artificial intelligence (AI), robotics, software design and renewable energy solutions.3 This competitive landscape compels smaller businesses to offer benefits that go beyond salary and traditional medical insurance to address what engineers truly value.
“More than ever, U.S. workers are seeking benefits that match their unique lifestyles and needs,” says Megan Holstein, head of priority business at The Hartford. "Small and midsize engineering firms that offer personalized benefits packages have a competitive edge when it comes to hiring and retaining the exact talent they need.”
Smaller companies can work with their benefits broker to design an attractive benefits package that also includes life insurance, disability insurance and accident insurance. Many of these benefits come with value-added services, such as identity theft or funeral planning services that offer additional protection and support to employees. Employers with leaner budgets can choose to offer such benefits on a voluntary or employee-paid basis, giving employees access to richer benefits at no added cost to the company.
2. Focus on Well-Being Benefits To Improve Productivity and Engagement
Engineering, like other fast-paced industries, can result in high-pressure work. to The Hartford’s 2024 Future of Benefits Study, 60% of U.S. workers are experiencing some level of burnout at work, though newer employees report specific pressures related to financial, physical and mental health.4
Businesses can partner with their employee benefits carrier to offer customized wellness solutions and tools that can help boost their employees’ holistic health, including:
- Tools and resources to help employees reduce stress and burnout.
- Mental health training and resources to help workers and managers spot potential warning signs in the workplace.
- Paid leave programs designed to help all employees address important family concerns.
- Specific guidance on continued remote or hybrid work to balance productivity and worker satisfaction.
3. Recast Workplace Flexibility as a Recruitment Tool
Since 2020, employee demand for remote work opportunities has continued strong, with many still viewing full or partial off-site work as non-negotiable.5
Engineers, particularly in technology or software-focused roles, can often work wherever their laptops take them. So, depending on their engineering specialty, workplace flexibility can be a powerful retention strength.
To deliver the work environment engineers want, small and midsize engineering leaders may want to review:
- Support benefits for remote or hybrid workers. Holstein says leaders may want to consider benefits such as home office stipends, remote work allowances and digital communication tools to enable a smoother working environment for off-site teams and their managers.
- Paid time off (PTO) policies that govern vacation, sick time, or family leave or parental leave. The Hartford’s data shows 30% of U.S. workers have taken an extended paid or unpaid leave from work to care for themselves or a family member in the past five years.6
- How internet of things (IoT) technology may help keep engineering employees safe and productive wherever they’re working.
4. Offer Sustainable Career Opportunities With Employee Benefits To Match
Engineers may seek purpose-driven work such as the opportunity to address real-world problems such as climate change, reducing waste and contributing to a healthier planet.
“As industries in general shift toward greener practices, small and midsize engineering companies may want to devise employee benefits and career opportunities to match,” says Holstein.
For example, employee benefits may include commuting subsidies for public transit, recycling or worksite charging stations to support electric vehicles or bikes. As for career paths, business leaders may be surprised to learn that paying attention to green projects can help companies recruit.7
Offering potential hires and current team members a chance to specialize or retrain in green projects can make a difference in recruiting and retention. It could also help future-proof engineering careers as sustainability continues to drive long-term business strategies.
1 “The U.S. Needs More Engineers. What’s the Solution?” Boston Consulting Group, December 13, 2023.
2 “Personalized Benefits for the 21st Century Workforce,” Society for Human Resource Management, 2023-23 State of the Workplace report, accessed April 7, 2025.
3 “Data Scientists,” Occupational Outlook Handbook, U.S. Bureau of Labor Statistics, accessed April 7, 2024
4 The Hartford’s 2024 Future of Benefits Study, Page 4.
5 “Many Remote Workers Say They’d Be Likely To Leave Their Job if They Could No Longer Work From Home,” Pew Research Center, January 13, 2025.
6 The Hartford’s 2024 Future of Benefits Study, Page 14.
7 “Creating Competitive Advantage Through Sustainability,” GrantThornton, October 22, 2021.
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