Why candidate negotiation power is shifting and what it means for employers

Across the UK, hiring managers in technical and engineering-led industries are seeing a decisive shift – candidates now have the upper hand throughout the hiring process. Scarcity of skills, rising pay transparency and changing expectations are giving candidates greater leverage than ever before when it comes to job offers and negotiations. And that’s forcing employers to rethink how they attract, negotiate with and secure top talent. For many it’s a surprising move away from traditional dynamics, but it’s not a passing fad – it reflects deeper changes in the labour market, candidate expectations and organisational strategy. 

At CBSbutler, we’re hearing from increasing numbers of clients that it’s becoming harder to close offers quickly and confidently. What’s driving this shift? What do candidates expect now? And what can employers do to remain competitive? 

The changing balance – what’s driving stronger candidate power?

Chronic skills shortages in specialist fields

UK employers continue to face widespread skills shortages, especially in sectors such as defence technology, aerospace and IT. According to the Open University’s Business Barometer 2024, 62% of organisations struggle to fill key roles due to a lack of qualified candidates. In manufacturing and engineering, these shortages are even more acute – the Edge Foundation recently noted that manufacturing remains one of the industries most likely to struggle to fill roles. In a recent report, Skills England also highlights ‘critical workforce gaps’ across defence, digital, clean energy and advanced manufacturing.

Employers can no longer rely on a large pipeline of available candidates; instead they’re competing for a limited pool of high-calibre professionals. When demand outpaces supply, candidates can become more selective and negotiate to their own advantage. 

Remote and hybrid work have increased candidate choice

Flexible working has fundamentally changed how people view their employment. When roles can be done remotely, location becomes less of a barrier. Candidates in the UK can now consider offers from employers nationwide, or even worldwide. Employers, therefore, aren’t just competing locally, they’re in global competition for skills. This broader market gives candidates more choice and the confidence to negotiate harder on salary, flexibility or benefits. 

Greater pay transparency 

While the UK doesn’t yet have full pay transparency, such as is being proposed within the EU, market and regulatory pressures are pushing more employers towards it. Around 71% of UK job adverts now include salary details, the highest level in Europe, enabling candidates to benchmark and negotiate more effectively.

A recent WTW survey suggests that 76% of UK companies soon plan to share pay ranges with employees and around 70% with external candidates (up from just 13%). As a result, candidates know their market worth and expect offers that reflect it. 

Multiple offers and fast-moving markets

In high-demand sectors such as cybersecurity and automation, skilled candidates often consider several offers simultaneously and are rarely available for long. A delay of even a few days in scheduling interviews or issuing offers can mean losing out to a faster-moving competitor.

This dynamic puts pressure on employer to make decisions quickly, communicate clearly and negotiate proactively or lose their preferred candidate entirely.

What candidates want now

Salary remains important, but it’s no longer the only factor. Candidates increasingly look for roles that offer flexibility, career development and meaningful work. They expect transparent communication, a smooth hiring process and a sense that they’ll be valued.

Candidates are increasingly drawn to roles offering:

• Personalised packages –flexible, hybrid working, training and upskilling allowances and clear progression plans
• Transparency and speed – visible salary ranges, prompt feedback, fewer interview stages and clear communication
• Value and respect – being treated as equals throughout the process
• Non-salary perks – health benefits, equity bonuses, paid training and extra leave.

What can employers do?

Be competitive and move quickly – when candidates have other options, speed and clarity matter. If your process is slow or requires multiple approvals, skilled candidates will simply go elsewhere. Aim to make offers within days, not weeks, and put forward your best package first.

Be open to negotiation – negotiation isn’t a weakness, so plan for it rather than resist it. Employers who listen and respond constructively are far more likely to secure their preferred candidate.

Use data and benchmarking – in niche fields such as defence tech or automation, pay rates move rapidly. Our salary and benchmarking reports help our clients to align their offers with current market realities.

Be transparent – where mission and innovation matter, salary alone isn’t enough. Emphasise what makes your organisation unique and highlight opportunities for professional growth, stability and purpose. 

Keep candidates engaged – communicate clearly, set timelines and give feedback throughout. Even if you don’t make an offer, a respectful and timely process enhances your employer brand.

How CBSbutler can support your organisation

As a specialist recruitment partner across engineering, defence, IT and manufacturing, we help employers compete effectively through:

• Salary and benchmarking – real-time market insights
• Offer strategy and structuring – flexibility and competitiveness advice
• Expectation management – aligning client and candidate priorities
• Transparent communication frameworks – templates and process guidance
• Consultation – from role design to onboarding.

Our consultative approach bridges the gap between candidate ambition and employer strategy, helping you to secure the right talent faster, even in competitive markets.

In conclusion

Candidate negotiation power is clearly shifting, particularly in sectors with tight talent pools. But that isn’t a threat, it’s an opportunity. Employers who embrace transparency, speed and flexibility will not only boost offer acceptance rates but also strengthen their employer brand.

In a market where technical talent is scarce, partnering with a specialist like CBSbutler can make all the difference. We turn negotiation into collaboration, helping you to secure the people who will drive your organisation forward.

Learn more about how CBSbutler supports employers and candidates in power negotiations.