what can employers do to bridging the digital skills gap in engineering.

Digital transformation is reshaping engineering roles – and creating a skills gap across multiple disciplines. New government investments in infrastructure will increase demand for engineers in 2025. However, the current workforce often lacks the digital skills needed for competitive innovation.

As demand grows for engineers, employers must look to new strategies to bridge the digital skills gap and future-proof their workforce.

AI and machine learning, robotics, blockchain, and other technologies are no longer relegated to niche engineering fields. Today, these technologies are an integral part of designing and maintaining the infrastructure that many traditional engineering fields focus on. Tomorrow’s engineers will need to be proficient in working with multiple technologies in order to stay efficient and innovative.

In this article, we’ll cover the state of the skills gap in engineering, key engineering skills and how this will affect hiring and retention.

understanding the digital skills gap in engineering.

Gartner predicts that 80% of software engineers will need to upskill by 2027 to keep up with future advances in AI. But it’s not just software engineers whose skill sets will need an upgrade; professionals in more traditional fields will need to advance their knowledge as well.

The quick shift in key competencies presents a challenge for employers; in the US, one-third of engineering roles may go unfilled over the next five years due to the skills shortage. Canada faces similar problems: 62% of employers say that engineering grads don’t have the skills they need.

Furthermore, part of the issue is that engineering programs are often designed on university perceptions of necessary knowledge, which often don’t align with what industry employers need.

One large-scale study comparing engineering curricula with job descriptions found that industry demands for skills like programming and familiarity with specialized tools such as MATLAB and AutoCAD aren’t being emphasized enough in engineering programs. Additionally, although employers value soft skills such as problem-solving, communication, and teamwork, these skills aren’t being refined in engineering university programs.

preparing today’s engineers for tomorrow’s innovations.

The key competencies engineers need to develop vary by discipline. However, one thing most engineering disciplines have in common is the rapid evolution of necessary skill sets. In infrastructure roles alone, an estimated 44% of skill requirements will evolve over the next five years. In addition, for employers, maintaining a skilled talent pipeline will require upskilling programs that help new hires and existing talent develop the digital skills they need to stay competitive.

Here are a few of the in-demand skill sets in specific engineering fields:

mechanical engineering

Advanced simulation, robotics and automation, and data analysis are becoming crucial skill sets in mechanical engineering as mechanical systems and devices become more reliant on data and AI.

civil engineering

A recent survey found that over half of architecture, engineering, and consulting firms regularly use building information modeling (BIM) technology in their projects. This requires civil engineers to be comfortable with 2D and 3D design coordination and BIM project management.

electrical engineering

IoT integration and smart systems demand enhanced software knowledge. Electrical engineers will also need proficiency in renewable energy systems, electric vehicles, and smart grid technologies.

manufacturing engineering

With the rise of Industry 4.0 and smart manufacturing, 30% of operating budgets are now being spent on technology to increase operational efficiency. Mechanical engineers will need a strong understanding of supply chain digitization, digital twins, and customer-centric manufacturing to stay competitive.

Across engineering disciplines, an increased focus on sustainability will require engineers to reconsider traditional materials and processes. They’ll need to keep pace with environmental, social, and governance (ESG) regulations in order to align innovation with business objectives.

In the current engineering talent market, robust learning and development programs are essential for building a strong talent pipeline. Forward-thinking employers can create supportive learning environments through mentorships, training, and partnerships with educational institutions.

For example, Siemens works with ABET, a nonprofit NGO, to develop micro-credentials available at Penn State University and University of Colorado Boulder. This helps young engineers boost skill sets while helping Siemens attract new hires.

Working with a talent partner like Randstad can help you develop an upskilling strategy that helps you best address the skills gaps in your workforce.

what the skills gap means for hiring and retention.

Upskilling will be a key factor in hiring and retention – but there are several other ways the skills gap might impact your talent strategy. Here are a few key strategies employers can use in tandem with upskilling to help build their engineering workforce.

recruitment.

1. strategic workforce planning

Take stock of your current workforce and projects to identify the most critical skill gaps. Understanding how talent aligns with your pipeline will help you decide when to hire and what skills to develop internally.

It’s also crucial to balance your long-term vision with staying flexible as technologies change. As you develop your plan, consider the potential for industry disruption and new advances in technology that will change the availability of talent and demands for new skill sets.

2. build your employer brand

A strong employer brand is essential for hiring top talent. Start with the basics, including competitive compensation and benefits packages and flexible work arrangements.

Your online presence should include information about your company culture and workplace that helps candidates understand what it’s like to work for you. Employee interviews and photos of team-building events on your website can go a long way in communicating your value.

3. use technical assessment tools and methods

In addition to more traditional interview techniques, skills-based assessment tools are also considered. Used judicially, they’re an excellent way to evaluate candidate proficiency in digital tools. When you use this approach, it’s important to be mindful of the time investment candidates will need to put in.

Choose assessments that evaluate the most critical skills you need, and balance this approach with applicant research and behavioural interview questions to assess overall fit.

4. consider contractors for specific digital projects

The growing gig economy is an excellent way to secure temporary talent with specific digital skill sets. Contract workers can provide a temporary solution for skills shortages, while contract-to-hire opportunities let you gauge aptitudes before making a final decision.

This can be particularly beneficial when demands for certain skills change abruptly. Amid ongoing industry shifts, contractors offer a way for employers to adapt quickly to meet project demands.

onboarding and retention.

1. structured onboarding for digital tools

While engineering graduates may have foundational knowledge in tools like Excel, AutoCAD, or Python, their ability to use them in real-world settings may vary.

Structured onboarding programs, hands-on workshops, and role-specific guidance can help ensure employees meet job expectations and contribute to organizational goals. This not only addresses short-term skills gaps, but also fosters a culture of continuous learning.

2. regular skills assessment and gap analysis

Periodically assessing employees’ proficiency in digital tools can help you identify where your current employees may need additional training or support. These assessments ensure that employees stay aligned with evolving industry standards and empower them to take ownership of their own professional development.

Paired with targeted upskilling initiatives, assessments can help boost productivity and ensure organizations maintain a competitive edge.

3. support for underrepresented groups

Traditionally, engineering has been a male-dominated field, which can make it a challenge for underrepresented groups such as women and minorities to progress in their field.

Supporting diversity, equity, and inclusion in your workplace can help broaden the talent pool and prevent leaky talent pipelines. In an industry where only 27% of women who complete engineering degrees stay in their careers, DEI initiatives can help create a more welcoming environment.

future outlook.

In 2025 and beyond, the demand for engineers is expected to grow across sectors – but meeting that demand will depend on helping engineers realize their full potential. As technology evolves, employers have a unique opportunity to provide value with upskilling programs that help them manage the digital skills gap.

Successfully bridging the digital skills gap requires a strategic approach combining smart recruitment practices with long-term talent development. Working with a talent partner like Randstad can help you understand where the gaps exist, and find targeted solutions to build an engineering workforce ready for the digital future.